Launching a small business is quite a task in itself. But one of the biggest challenges comes in the form of the lack of financing.
When the business performs well and builds a significant customer base, you may plan to expand operations. But securing funding isn’t always easy.
Frequently Asked Questions about Venture Capital
Dr. Mohan Ananda discussed these essential aspects of business in a recent interview with Millionaire by Morning. During the interview, he shared valuable insights on how to become an expert venture capitalist. He is a venture capitalist and Indian tech CEO of multiple business entities.
Business Basics
Entrepreneurs need to have a strong mindset. You’d face obstacles as well as opportunities along the way. But it’s your mindset that drives you to success.
“When I decided to become a business person, I knew there could be a success, or there may not be, but I wanted to pursue that. In many cases, I’ve been fairly lucky and I had many failures too.”
As per Mr. Ananda, a person needs to be confident in their dreams and goals. When you trust your instincts and abilities, then you can overcome almost any challenge.
Keep It Simple
The key to business success lies in keeping things simple.
It’s certainly important to think big. You should have a good and big vision. At times, the vision may seem too big. But this would drive you to put in your best effort.
You need a clear roadmap to reach your ultimate goal. So, this roadmap or plan should be as simple as possible. This would make it easier to explain your plan to potential investors. Also, you can effectively communicate the steps to your team so they can assist you with meeting business goals.
Also, you’d face a myriad of challenges along the way. So, you need to come up with the right strategy to solve the problem.
Business Investment and Funding
When you start a business venture, you may consult your family, friends, and people you know. Your social circle is usually your initial investor. They may not understand your business idea, but they know you. So, they can provide initial capital due to their trust in you and your skills.
When the business grows, you may reach out to investors and venture capitalists for additional funding. Dr. Mohan Ananda has worked as a venture capitalist and made his companies public. So, his insightful advice in this regard is extremely valuable.
He shared that venture capitalists are professional. They know the intricacies of the business world. So, they decide to invest in an idea only if the business plan is viable.
They are knowledgeable and can guide business owners in the right direction. When a good venture firm decides to invest, you can benefit from their expert advice. Also, they can introduce you to a vast network of connections, potential partners, and strategic partners.
Growth Opportunities via Venture Capital
Whatever you do, you can learn from it. You get to learn a lot while managing your business and meeting other people in the business world. So, it’s important to make the most of this knowledge.
Whatever you learn as an entrepreneur, try to apply it in subsequent events. For instance, if a marketing campaign fails, consider it a learning opportunity. Analyze the reasons why the campaign failed. Then refrain from repeating the same mistakes in the next marketing campaign.
You should be good at identifying growth opportunities. But at the same time, understand when moving forward with an idea isn’t suitable.
When there are no further growth opportunities, it’s best to give up on the idea. Whether it’s about a single product or the entire business, walk away and do something else when you know things won’t work out.
“You have to close when you know that the growth possibilities are not there. Once you recognize it, you walk away and do something else.”
Networking
For business owners, networking is essential. Yet building a strong and large network isn’t an easy feat. When you are young and have just entered the industry, you can’t expect to have a huge network.
So, what you can do is make the most of this small network.
Don’t hesitate in asking for help. If you are a university student, ask your professors to recommend you to potential investors in their network. And you’d be surprised at how many opportunities you can get this way.
Do you need expert advice from an experienced venture capitalist and tech CEO of Indian origin? Then there’s nothing better than listening to the interesting interview of Dr. Mohan Ananda!