HUDSON: For the job market to continue improving, new companies will continue
to have to be launched. Many new companies, many new jobs rather come from
new companies, but when it comes to launching a new business, being an
entrepreneur is not for wimps. In tonight`s “Money File,” Eric Schurenberg
asks: Do you have what it takes to succeed as an entrepreneur? Eric is
editor at inc.com.
ERIC SCHURENBERG, EDITOR, INC.COM: What`s the first question a VC or
angel investor asks a would-be entrepreneur? It`s not, what`s your
business model or how big is your market? It`s who the heck are you?
Why? Because entrepreneurship is so hard. To launch a company, you have
to be willing to sacrifice your family and friends, all your other
interests, not to mention sleep, peace of mind and health. But who are you
also gets to your business credibility. It helps if you have experience in
your startup`s industry. If you`re young, you may not have any. In that
case, you need to be a quick study. In next to no time, you have to learn
enough about your chosen industry to convince someone it`s not foolish to
put money on your head.
And then there`s your team. It`s not only a question of how qualified
they are, but also of how well you all fit. How long have you been
together? Do your skills mesh and do you get along? Because in the
course of getting going, you`ll put your team through stresses you`ve never
imagined. Yes, you need a great business model, as well, but models change
in the evolution of a company. The founder doesn`t. That`s why investors
all say the same thing: they fund people, not models. So, question number
one is, do you have what it takes? I`m Eric Schurenberg.