Make money before you take money
Making money is a great idea! In a world where the new cool thing to do is raise capital, the old idea that “making money is good” will get you ahead. I know too many people that had an idea that had VC value and they blew it. The lifestyle killed them. Hitting chicks on Tinder and buying all the rounds on the weekend was more important than making a living out of somebody else’s money. Do you see the value of other people’s money? If you have an idea that others will invest in, isn’t it your responsibility to build a business? Investors are not investing in your personal life, they are investing in your business proposition.
Before you go and take somebodies money, I would advise you to be prepared. Learn how to make money and learn the value of money so you appreciate the position you are in. Ideas are easy, working to make them a long term reality is hard. You have to know the basics and surround yourself with people to make sure your shortcomings are covered. You can’t do it alone, and you will never do it as a part time venture. When you have somebody else's capita, you better be all in.
Here is what happens when you screw an investor from a venture capital firm or angel market, they tell all their friends in the market what you did. Once you burn somebody for big money it is pretty much impossible to get money again. Your paid vacation will turn into a jb hunt and a lifetime being a number two because you screwed up being a number one. If you really want to be a number one, go get the experience to appreciate the position, the skills to actually do the job, and make sure whatever it you are doing can make money.
The “million Dollar Deal” bubble is going to pop. Investors are going to get fickle and the VC money is going to dry up. Tooooo many dumb and young guys coming out of fantasyland (college) are ruining it for the rest of us. I really hate the idea of manipulating an idea to get another round of funding. I would much rather see people making some money to prove worth, followed by a round of investing to grow what has been started instead of the constant rounds of capital being raised around theoretical ideas with no real value because the owners have their heads up their ass. Create real value that can be expanded upon with investment money! Who knows, you may be able to grow without giving up so many shares in your business and make even more personal income thru a smaller sized business?
Once you start getting into the investment game, you are trully swimming with sharks. Really good money managers will come in and take what you thought was yours if you cut a bad deal or don’t have the chops to actually do what you sold them on. You have to know every aspect of your business, make it profitable, and have a long term plan that can actually be achieved. If you just take an idea and bogus PnL, you are going to get burned.
If you truly want t run your own shop, run your own shop profitably by doing the homework, growing the idea with patience, and be practical. VC money sounds good, but can be the kiss of death without real planning and leadership.