New Year's resolutions for startups who want to close deals

http://venturehacks.com/articles/closing-deals

by dabent • 17 years ago

12 10 17 years ago

slapshot• 17 years ago

Resolution 6 - I will not pretend that my startup is Glengarry Glenn Ross. While I should Always Be Closing, the rest of that movie is a mockery of the deal-closing process.

SWalker265• 17 years ago

Resolution 7 - I will not waste my valuable time watching TV or silly movies

skmurphy• 17 years ago

It's funny but these are mostly the reverse of what you want to do when closing deals with customers or business partners (vs.investors):

1. Focus on the opportunities that are in front of you.

2. Establish a working rapport with the customer/partner, a deal should be the start of a long and mutually beneficial relationship.

3. Maintain your balance, burnout is much more of a risk than losing any one deal in this environment.

4. Don't get into an adversarial relationship with your customer/partner.

5. Focus on reaching a business agreement, lawyers can advise you on business risks, but in the end it's the entrepreneur's call what risks to take.

EDIT: This post is not representative of the tone and quality of those on his website http://walkercorporatelaw.com/ here are two that are much more useful:

http://walkercorporatelaw.com/startup-issues/ask-the-attorne...

http://walkercorporatelaw.com/angel-issues/angel-financings-...

SWalker265• 17 years ago

not sure my post is inconsistent with anything here. all i'm saying in a nutshell is (i) create a competitive environment, (ii) be disciplined, (iii) work hard, (iv) diligence the guys on the other side of the table and (v) get a good lawyer/advisor to watch your back. yes, i tried to mix-up the tone for venturehacks. thanks, scott

ellyagg• 17 years ago

He says working really, really hard matters. Just wanted to note that since there's been much opinion to the contrary here recently.

SWalker265• 17 years ago

in my experience, there is direct correlation between success and hard work. cheers, scott

jboydyhacker• 17 years ago

How about stay away from lawyers that try and make business decisions for you?

SWalker265• 17 years ago

i agree, but i think you need a good lawyer (without a vested interest) to watch your back when you're doing deals. a good lawyer can also help you think through some of the key business issues. cheers, scott

dennykmiu• 17 years ago

Not such bad advice here, especially consider that it is coming from a service provider (i.e., corporate attorney). My own opinion is that realistically, the only startups that could close an investment deal in 2010 are mature companies that have demonstrated a robust revenue model and are in need of money (and only money) for expansion. My advice to them is the same as what I received in 1999 after I secured my first term-sheet. After almost three years of hard work I finally had something to show to my attorney friend and I asked him what to do next. He said, “now go out and get another one just like it.” In other words, getting a term-sheet is only the first measurable step and to close any deal, you must have competitions. But all entrepreneurs should remember that “Every problem in a startup (including funding) can be solved with the timely arrival of a PO.” So even if you can't close any investment deal in 2010, as long as you have sustainable revenues, all other problem can be solved. In other words, focus on "value creation" and the "valu-ation" will follow.

SWalker265• 17 years ago

yes, competition is key and obviously so is cash flow (but two different issues). thanks, scott

New Year's resolutions for startups who want to close deals

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