Alexander Drees , a serial entrepreneur , talks about whether or not to talk about that ” failed idea ” how to choose the investors , how to behave , and what pitfalls to avoid .

Start-up – it’s quite hard work , but also the greatest drive, apart from sex. Since I am an ambitious entrepreneur, I have accumulated a lot of experience about the failures and successes.Over the past few years I have been able to formulate the rules of 15 , following which it is possible to overcome this the hard way in an easier way ( it does not matter in what order are located tips ) .

1. Check whether you are compatible with the investor.

Money is very important for a beginner startups , but they should be very neat and carefully choose their source. Since most of the funds and business angels to be forfeited shares of your company for the first time you will be ” married ” to them. Therefore it is better to love your foundation , or his angel . Determine in advance how you will approach each other . And if you have any doubts , it is better to abandon the deal.

2 . Line up a prototype at its own expense

Never attempt to attract investors , not having built a prototype. Money for the better team to collect from their own savings , and invest your project ask relatives or loved ones. It is much easier to sell something that you can show . In addition, you will be able to prove in practice that they are able to embody the idea of ​​a startup. I advise you to listen to the principles of Eric Rice (Eric Ries) and Lean Startups.

3 . The prototype does not have to be a very complex

At least there is a minimum . You should not build a commercial decision , not having a big budget . You have built a prototype to demonstrate one or more functions . Make it as easy as possible to understand and apply . Take the trouble to create a usability and interface.

4 . Test your prototype

Once you create a prototype , ask your family, friends or co-workers begin to use it. Listen to their comments and your comments and try to improve the product . If you want to get investment from people like Dave McClure , you will need to prove to users that they need your product that they love him and they are ready to share our impressions of it with your friends. You should not really worry about mistakes. If your first customers do not care they will tell you that you need to modify . Since you are startups , you will forgive a lot.

5 . Assemble a strong team

From my experience I know that a lot of individual start-ups tend to fail. Assemble a strong team before founding the project. You should not start a project without having in his team in marketing, expert on design and interface , developers and technicians . Do not assume that your team – is hired workers . They – co-founders of your project and your partners in its development , so treat them that way.

6. Do not confuse the startup and big business

Do not think that top managers in large companies are always good businessmen silt mentors . Startup and big business – they are two completely different things. Also, do not assume that the adviser of ” Yandex ” or Mail.ru will lead you to the partners or investors.

7. Learn to delight audiences

As the founder of the project, you should do all people to admire your product. Be an active , passionate, incendiary . Your presentation will look more natural and better the more you speak in public , and you will be much easier to convince everyone how cool you are . Always watch for a reaction , listen to feedback , learn from our mistakes and improve their product. You have to inspire people to work with you or for you to use your product or invest in it .

8. Look for investments

While you are searching for investors , the full workload , divide among the members of your team, so as not to run the ” churn “. It would be better if your team is the product manager . Around you have to be talented people. And you, as a brilliant director , have to seek investment, which will leave 90 % of your time.

9. Do not waste time in vain

Generally, they are designed to attract attention, but not to increase the budget of the project. Today, it is as valuable as money. The investment must pay off in full , as in the case of cash.

10 . Focus on the big market and addressing important issues

Find out if your product enough market. To an investor you are truly interested , you need to or supplant other players with multi-billion dollar market , or to solve an important problem. Small problems can only attract small investors. A major problem may be of interest of major investors .

11. Always be closer to the investor

If you want to attract investment from the fund in Boston , you should move to Boston . Because an angel or a fund – this is not just a source of money. Many investors have good communication and relationships with other investors , partners , funds and so on. They were already working in the market and achieved certain results, not even once. So look for a way to make money .

12. You should not expect much from associating your business angel

But too carried away by the previous council is not worth it . When you select a source of funds, do not overestimate its relation to the market or mentoring abilities. Even if your angel sign, for example, with Igor Matsanyuk (Farminers, GameInsight) or Dave McClure (500 Startups). In any case, he too will not help a startup .

13. Enter the Business Incubator

If you live in Europe , you will need to become a member of the incubator Seedcamp or Startupsauna ( they will help you for free, without asking for shares of your company). Also note Techstars, Farminers, Launchpad, Y- Sombinator etc.

14. Or make the product or the project open

If the ideas are not implemented , they are not worth anything .

15. Do not be afraid and do not hesitate failures.

Originally put clear goals . Listen to the feedback and comments of your customers , invent new version , check them in public, and improve as long as you achieve set results. And if after six months you will not achieve any results , stop the project. For a start failure – it is also the norm , so do not be afraid or ashamed of. And if you want to achieve great results , be prepared for failures , if the risk .