Getting money … slogging through the venture capital minefield … can be long, time consuming and very wearing on everyone in the business. Even the guy who cleans the toilets can feel the stress that filters down through a business that’s been chasing the dream of obtaining venture capital.
So once you’ve got the money what do you do? Do you give everyone a bonus, do you throw a party? No, it’s business as usual and you go on chasing the other dream you had even before you thought of venture capital. You chase the dream of building your business, developing your product and turning a small business into a very large and very profitable one … the money may make turning that dream into a reality just a little easier but you’re still going to have to work hard.
At the same time you’re pursuing your dream you need to grasp some reality too and the best way to do that is to bring out your business plan … the one that got you the funding … and go over it again just to refresh your memory and remind yourself of where you’re heading.
It’s also time to get your management team together and sit down with angel investor or venture capitalist who is going to be part of your business from now on. Yes, if you haven’t tried to raise funds yet, I have to tell you that once your raise some angel money or venture capital there will be a new face on your board or in amongst your management team. No angel investor or venture capitalist is going to lend you money unless you’re prepared to have them represented on your team and they are going to want to have plenty of input from now on.
So you get your team together and you sit down with the new member and look seriously at where you’re hoping to take the business. It’s a good time to do it, as soon as documents have been signed, because you no longer have total control of the business. The investor is now there sharing the management of the business and his exit strategy will play a big part in the planning for the future of the business.
That may sound a little strange … after all investor has only just agreed to put some money into the business … but even before the money is paid into your business bank account they have an exit strategy mapped out. Your business plan … and the focus of the management team … may have to change slightly to fit in with that exit strategy so it’s better that everyone finds out sooner rather than later if any changes do have to be made.
Once you have the money the hard work doesn’t stop … in fact, if anything, it all just got a little harder but with the help of your business advisor and that angel investor or venture capitalist who now wants a say in the running of your business you will make it through.
