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For Startups: How To Hack An Investor’s Mind

Smruthi Kishore

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For Startups: How To Hack Investor’s Mind

The world of investors is somewhat mysterious. They often tend to operate in secret. Investors think differently. They invest in your Startups only if you are making it big or popular.

They cannot be approached by emails or calls. As a founder or an entrepreneur, you must wonder why an investor funds in your startup rather than investing in a stock market?

The ultimate goal of establishing a startup company is to make profits. To achieve this, angel investors, as well as venture capitalists, should come to their rescue. The first step as a founder, you must be able to read an investor’s mind so that you can negotiate with them easily.

Here, we summarize about how investors think.

Firstly, investors are of two types – Venture capitalists and Angel Investors. VC’s invest other people’s money and angels invest their own money. Angels always tend to fund riskier projects than VC’s.

Most investors are looking for hits. Since most startups fail, in order not to waste their time, they invest only in those startups who are recommended by other VC’s. They would go through the people they already know.

Now, once the VC makes his mind to invest in a startup, he will get a board seat with almost every investment. This board seat comes with all the responsibilities to attend the board meetings.

Whether you are a 10% partner or a 50% partner, you should be sitting in the meetings. So VC’s tend to invest more money as per the deal so they can take the larger amount of investment as returns.

So, keeping all these into account one should discuss terms with the investors. If you want to negotiate with a VC, remember that their ultimate goal is to maximize their returns. All you need to do is to make them feel that they should invest in you right now or else the opportunity is gone forever.

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How To

How To Talk To People You Cannot Avoid

Smruthi Kishore

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How To Talk People You Cannot Avoid,Startup Stories,Startup News India,Talking to Someone Everyday,4 Ways to Talk People You Cannot Avoid,How to Avoid People,Small Talk,Small Talk at Work,Situations Stories

There is always that one person with whom you do not know how to break the ice. Even the most out going person could find it difficult to speak to strangers. However, every workplace has different people and sometimes, it just comes to a point where you have no choice but to initiate conversation; also known as small talk!

1. Begin with an anchor 

An anchor is essentially the starting point of every random conversation. It helps to set the tone and gives you an idea of what the other person is thinking. I usually start off with something like, “Oh, the weather is so nice today, I do not feel like working!” The best part about these openers is both you and the person to whom you are talking to know the statement is for the purpose of small talk and the awkward ice can be finally broken!

2. Reveal something about you 

The best way to fill the gap in those minutes where the conversation becomes awkward is to say something like, “this job is quite exciting. I have not done such a challenging role before!” When your colleague knows the struggle is real, the conversation flows easily and quickly.

3. Listen 

Listen, because it is important. When you say some of those superficial line fillers, you never know what kind of a conversation it may trigger. For instance, I had a bad day at work and a colleague happened to ask me how I was. In all fairness, the question was just a simple opener. I took it to be a real opener and offloaded onto a stranger. What makes listening work is you can always learn something about the other person! On a side note, this person and I are really close friends now!

4. Know when not to talk 

Okay so there are times when you are engaging in random conversations, you hear things you do not entirely agree with. If these conversations are with people you do not know, then it is best to really keep quiet and not say things you regret later.

Small talk is quite a task and usually, in an informal setting, the ice can be broken over shared interests. At work, that is a little harder, even for an extrovert like me! I have used these tips in the past so I truly hope they help you too!

 

 

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Startup Hacks

How To Deal With Credit Stealers At Work

Smruthi Kishore

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How To Deal With Credit Stealers At Work,Startup News India,Startup Stories,How to Respond When Someone Takes Credit for Your Work,How to Shut Down a Colleague Who Takes Credit for Your Work,7 Tips When Someone Takes Credit For Your Work,How to Deal with a Credit Taker

At every work place, there are several dynamics. However, to narrow down the topic here, there are two types of people to pay attention. The first are the kind who make sure they get the credit for their work. The second is the kind who pretend to be your best friend at work and end up shoving the knife deep down your back when you turn around. When people come and try to burst your bubble about the work, you feel betrayed. Why not? You put in the hard work and there is no credit coming your way. A certain Mr. X has this problem and he wonders how to deal with such a situation. If you face issues like the unassuming Mr. X, then these tips could work for you!

1 Take it as flattery 

The saying, “imitation is the best form of flattery,” did not come from thin air. When working, it is quite easy to take credit from other people. However, when people chose to take credit for X’s work, it clearly meant he was brilliant at his job. Take it as praise for your ability, despite there being no quantifiable praise directed toward you.

2. Outdo Yourself 

Every time someone takes credit for your work, it makes you want to push yourself harder and outdo yourself every day. Mr. X learned this the hard way and this made him so much better at his job than earlier! Think of Apple in this scenario. Samsung is always trying to be on par with Apple and seems to do a good job with the imitation. However, Apple remains undeterred and works at making sure it gives its fan base something new to look forward to with every phone!

3. Take a look at your insecurities 

One of the main reasons credit stealing happened to Mr. X was because of how insecure he is with his work. Are you fuming that someone took your credit for something? Why? Is there an insecurity that has been unveiled, which led you to be so infuriated? Have you been looking for praise as a validation of your ability in something? Realise the “Shakti” in you and take let the world know you are not to be taken lightly!

Everyone has a point of view. Everyone puts in the same (some more) effort into their work. Give credit where credit is due and only take credit when you know your work is flawless and perfect!

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How To

Why Is Competitive Advantage Important For Your Start up?

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The very first thing a start up does before flourishing in the marketplace is, develop a market plan! The market plan comprises of many factors, however, the most important is competitive advantage. So, what is a competitive advantage? It is basically anything that sets your business apart from another. Any firm requires a competitive advantage to make its presence felt in the business marketplace. Only then, can you differentiate your start up from other existing firms!

The significance of competitive advantage!

The start up world has been evolving with each passing day! The competition is getting intense like never before. So, how do you create superiority when compared to your rivals in the business market? Develop a brand recognition that a company either delivers quality products at a lower cost than the competitors or, offers various services at a greater value when compared to the competitors! Ensure that your products or services are better and best in terms of quality! This could create popularity among the consumers and they would spread a word which in turns makes your brand recognizable. Consumers could recognize your brand easily and prefer choosing you over others! When you establish an effective brand name, customer base becomes extremely powerful resulting, in customer loyalty. Isn’t that pretty much any firm would love to have? Having your customer come back to you over and over! Apart from this, when you establish an effective competitive advantage, you could develop the reputation of offering the best service or support in the industry which allows your company to charge more for your offering! This makes your investments in the firm all worth it, right?

Listed below are the parameters that you should consider while developing a competitive advantage for your start up!

  • Quality of the product/service
  • Pricing
  • Marketing
  • Innovation

For example, the famous fast food chain McDonald’s competitive advantage relies on a cost leadership strategy! Likewise, the technology giant Apple, is quite famous for its innovative products! This is how you differentiate your company from others! You discover and develop a unique strategy for your firm! However, at the end of the day, it is exceptionally important to keep a track of your firm’s growth in the marketplace! Find out what is working and what is not! With time, if something doesn’t click then work on it along with your marketing team and implement the change!

So, if you develop a great competitive advantage in the market, you could survive in the long run and become a market leader! A competitive advantage could make you or break you! In today’s competitive world, standing out from the crowd is essential! The best strategy for your company is to focus on improving the quality of your product or service so that it is universally recognized as being superior to anything else available! So, choose the path wisely in order to create a better competitive advantage for your start up! 

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