Category: General

An entrepreneur should know why they are in the game also they should always know what they need. Like they say “As you lay your bed, that’s how you lie on it” how do you choose to lay your bed, do you choose to lay it in a mastermind entrepreneur way or in an amateur entrepreneur way?

Things that make a mastermind entrepreneur stand out from an amateur entrepreneur are highlighted below:

They are ready to face challenges:
You might be wondering if a mastermind entrepreneur doesn’t face any challenges at all, yes they do but what makes them stand out is that they are always ready to face their challenges. They know the step to take in other to tackle their challenges; they see their challenges as success and not as defeat. But amateur entrepreneurs are always scared of challenges, they don’t know how to go about it, whenever they face any challenge they prefer to put on the spirit of failure, because they believe that they can’t overcome the spirit of challenges.

They take their business serious:
When it comes to the taking of business serious you will always find a mastermind entrepreneur there. A mastermind entrepreneur are always taking their business serious, they are ready to go to any length in other to make their business become successful. They don’t joke with the idea of taking their business as their second wife or husband simply because they know what they want and they know why they are in the game. But an amateur entrepreneur will never do that, they believe that they will succeed if they want to succeed and being successful is not by hard work. They just don’t want to get out of their comfort zone for once.

They aim high and set achievable goals:
No matter the condition they are, they are always aiming high and setting achievable goals, they don’t believe in impossibilities. They believe that nothing is impossible in this world. Nothing is impossible in this world, if you truly believe. Amateur entrepreneurs aim less and they don’t set an achievable goals, they just don’t have the believe that they can make things happen; I mean they don’t believe that things are possible.

They know how to manage risk:
Ability to manage risk is one of the factors that makes a mastermind entrepreneur become successful.A mastermind entrepreneur knows how to manage risk; they know what it means to take risk. While an amateur entrepreneur doesn’t know how to manage risk, they don’t even want to hear the world risk they are always looking for a way to skip the name called RISK.

They posses the skills:
Mastermind entrepreneurs posses the skills, they are not lame. They know the importance of possessing the skills. For an entrepreneur to be among the mastermind entrepreneurs, he or she must posses the skills, it’s only an amateur entrepreneur that don’t know the usefulness of the skills and why they should posses it. Skills like time management skill, creativity skill, leadership skill etc.

They are passionate:
Mastermind entrepreneurs are always passionate, they love what they do, and they go into a field that suits their interest that’s why they keep dwelling on the mountain top. Amateur entrepreneurs are the ones that are not passionate about what they are doing. They are just doing it due to imitation or just for the sake of doing it, which is not supposed to be.

Entrepreneurs often find themselves in high-stakes negotiations with big, savvy players, with significant negotiating power (referred to herein as “Big Boys”) — whether it be a venture capital firm in connection with a financing or a private equity firm in connection with the sale of the entrepreneur’s business; the situation can indeed be daunting. Below are ten tips for entrepreneurs to help them through this process.

1. Retain a Strong Team. In dealmaking as in business, you are only as good as your team. Accordingly, the first step for the entrepreneur is to retain a strong transaction team — and the quarterback of the team should be an experienced corporate lawyer. Indeed, an experienced corporate lawyer will not only add value to the transaction, but also can help the entrepreneur build-out the team and tailor it to the particular deal (e.g., in an acquisition, a strong tax lawyer is imperative to help structure the deal or in a licensing transaction, a strong IP lawyer is often necessary, etc.). The Big Boys are generally represented by large, aggressive law firms, and the entrepreneur must ensure that his/her team is up to the task.

2. Do Your Diligence. Due diligence is often a critical component to any deal. One form of diligence that is often overlooked, however, is an investigation of the guys on the other side of the table. What’s the reputation of the Big Boy — e.g., is this a venture capital or private equity firm that treats its portfolio companies well or is this a firm that squeezes the little guy? What about the particular individuals with whom you are dealing? What are their reputations? Are they good guys with whom to partner or are they jerks? Indeed, the web is a good starting point for the entrepreneur who needs background information on a particular firm/individual. At a minimum, the entrepreneur should track down other entrepreneurs or CEO’s who have done deals with the guys on the other side of the table and make an informed judgment as to whether they are guys with whom the entrepreneur wants to do business.

3. Create a Competitive Environment. There is nothing that will give the entrepreneur more leverage in connection with any negotiation with a Big Boy than a competitive environment (or the perception of same). Indeed, every investment banker worth his salt understands this simple proposition. Accordingly, a start-up seeking a Series A round financing from a venture capital firm, for example, will clearly be more appealing if such firm learns that other venture capital firms are interested in the start-up. Not only does competition validate a firm’s thinking, but also it appeals to the human nature of the individuals involved. Indeed, everyone wants what he doesn’t have and/or what someone else wants. The entrepreneur will have strong leverage with respect to price and other material terms as competitors are played off of each other and will thus strike the best possible deal. One caveat: as discussed below, it is probably best left to a strong corporate lawyer to play this game on behalf of the entrepreneur; indeed, this strategy must be played carefully and is better-handled by someone with experience.

4. Run the Negotiations Through the Lawyers. The entrepreneur should do what he does best — i.e., build companies — and leave the negotiating to a strong corporate lawyer. Entrepreneurs are generally no match for sophisticated venture capitalists or private equity or corporate development guys who do deals for a living. Accordingly, a smart entrepreneur will stay above the fray and let his corporate lawyer run the deal. The Big Boys may try to do an end-run around the entrepreneur’s lawyer (and may even criticize the lawyer and try to turn the entrepreneur against him), but the entrepreneur should remain disciplined and avoid “side-bar” negotiations with the principal(s) on the other side. This approach is particularly important where the entrepreneur will have an ongoing relationship with the other side post-closing; the goal is thus not to poison that relationship with testy, acrimonious negotiations (i.e., let the lawyers fight it out).

5. Develop a Game Plan. Every deal is different — different players, different negotiating leverage, different risks, different timing — and it is thus critical that the entrepreneur sit down with his transaction team and strategize; in short, he must develop a game plan and then attempt to execute the plan. Indeed, doing deals is no different than any other project: the entrepreneur must think through the issues with a smart, experienced team, set reasonable milestones and then monitor the progress. Rigorous analysis throughout this process is paramount.

6. Be Careful with LOI’s. A letter of intent (an “LOI”) — sometimes referred to as a term sheet or memorandum of understanding — is often executed in connection with all types of deals. The entrepreneur must understand that, depending on the deal and the context, there are different LOI strategies and considerations that must be addressed. For example, in the acquisition context, a selling entrepreneur should try to negotiate all of the material terms of the deal in the LOI when the entrepreneur’s leverage is the strongest; on the other hand, a buying entrepreneur’s main goal with respect to the LOI is merely to lock-up the seller and prohibit it from shopping the deal for a reasonable period of time. Another major concern with respect to LOI’s is that they may be deemed enforceable by a court of law (i.e., be deemed a binding agreement) — despite express language in the LOI to the contrary. The lesson here is simple: an LOI should not be executed without the advice of competent counsel.