Last week I blogged about burning boats. Today, I’m addressing the case of an entrepreneur who has burnt his boats, given it everything he’s got, and failed because of pride.

I’ve spent extensive time over the past few days with an entrepreneur who needs to face a bitter reality: He has a great idea that he will never make successful.

We’ll call him Bill.  He’s been working on his project for 20+ years and has yet to turn the corner.  He can’t bring himself to walk away because people continue to tell him what a great idea he has and how big it could be.  The people Bill is talking to are telling the truth.  His idea is amazing and it works.  With the right management team, Bill’s company would have a high probability of success.

He has had several offers from investors/experienced entrepreneurs with successful track records to buy a controlling stake in his company, but Bill refuses to give up control of his baby.  He insists on being the one to lead the company and will not hear otherwise.  It’s his idea, he’s done all of the work so far, and ain’t nobody going to take it from him.

I’m sharing this story because I’ve heard so many like it from dozens of frustrated entrepreneurs.

I hope Bill will find someone who will take control of his business, help it reach its potential, and let Bill maintain a small ownership stake.   However, I’m afraid his window of opportunity is passing him by, and it may be too late for him to succeed.

Do you think like Bill?

We have talked recently about the importance of having enough runway to get your company through each stage of its life.  During the startup phase it is obviously very important to use your money sparingly and to cut corners where you can.  That being said, you do not want to scrimp on the things that MAKE your company what it is.  Too often web startups do not protect their servers whether it be through missed backups, poor IT staff, or other issues.  If you are a brick and mortar business, having a fire hazard for a building often takes out businesses that otherwise would have survived.  If your business relies on something completely, make sure that it is solid and that you have protections around it.  Just ask this startup company about this issue.

Whether it be leased equipment, buildings, servers, financial, or legal, make sure you are looking out for quality.  The last thing you need as a struggling startup is to be taken down by a fire, hackers, lawsuits, or broken equipment.  While certain things are out of your control, most are at least partially avoidable.  In the fast world of dreamy eyed entrepreneurs, these things are often forgotten.

As your portfolio expands, it often gets hard to juggle board meetings and helping the individual companies.  As a recent startup, FundingUniverse would like to give a few thoughts as to what a new company most needs from an investor with little time.

1. Expert advice from those with experience in a certain discipline.  This means that specific advice about an area of the company will be more productive than advice about a company as a whole.  We often see startups that are constantly reminded of their overall shortcomings, but who never receive specific critiques on what exactly they are doing wrong.  Most companies know they are doing something wrong from a high view, bring it down for them and they will have a much better chance of correcting it.

2. Encouragement is key for any startup.  While critiquing is important, if it is not followed up with encouragement, entrepreneurs will often stop listening.  If you have the chance, respond to press releases and praise companies that have launched new projects or services.  It is best if these come unsolicited because it shows your ongoing interest in the company.

3. Help keep the focus of the entrepreneurs.  Often entrepreneurs can get bored of staying the course with a company and try to go beyond what is good for the company.  Try to encourage the company to stick to a plan and only add to it when absolutely necessary.

Yesterday, we hosted another successful SpeedPitching event.  We had 10 fantastic companies that each pitched to 40+ investors. 

I love these events.  There is so much excitement in the room and deals are getting done.  Here is a list of the 10 companies that pitched yesterday:

1. LinkingUniverse
2. Acceptx
3. Jenneman
4. Geary Technologies
5. Toy Share
6. HydroWire
7. SubZero Ice Cream
8. Kahuna Creations
9. Argon Technologies
10. Kuru Footwear

If you don’t know what a SpeedPitching event is like… watch this 1-minute video.

And, finally, we’d love to come to your area to host an event.  Please let us know if you are interested.

There are a few common questions that have consistently come up regarding the FundingUniverse Rating System. As a result, we’ve asked resident expert Business Plan Analyst, Tim Zenger, to provide tips and answer some questions via webinar.

Here are some of the things that he covered:

* How the rating process works
* What an investor is looking for
* Tips to getting a 4-star plan
* General tips & suggestions

Take a few minutes and watch the webinar (by clicking here). It’ll be well worth your time!

Will Price, hotshot VC at Hummer Winblad,  says:

“I continue to regret that so many brilliant people that I know, full of energy and ability, sacrifice their passions on the alter of safety or indecision.

The conquistador Cortes provided a model for all intrepid souls….that is to burn the boats on the shore and ensure no way back and the stark need to make the expedition succeed or go down trying.”

I love the metaphor and I really don’t have anything to add to it, except to say that I have a great deal of respect for entrepreneurs who have the guts to burn their boats and go all-out.  At the same time, I feel sorry for those who have had the entrepreneurial itch and never satisfied their urge, or only pursued it half-heartedly.  There are few things as haunting as the “What if?” that will follow them for the rest of their professional lives.

The other day I went to lunch with a couple of entrepreneurs who have burned their boats.  They’ve quit their jobs and cut ties in order to make their dream happen.  I love their passion, and their idea is a good one.  But, I don’t know if they’ll ever successfully raise the money they’re looking for.  It’s highly unlikely at the very least.

However, one thing is certain: They will never lie in bed at night wondering, “What if I had given it my all?”

Will you?

It’s now live!

For those of you that are looking for a little bit of guidance with your fundraising efforts, we’ve just released the “Entrepreneur’s RoadMap” to help you through the process.

The road map is designed to educate, prepare, and connect entrepreneurs. The guide will walk you through — step-by-step — the fundraising process so that you have all of your options at your fingertips.

The education section will teach you:

1. How to take advantage of the FundingUniverse tools
2. Help you decide if you really need to raise capital
3. Teach you the type of funding that you need (self-funding, FFFs, debt, equity, etc.)
4. Guide you to know how much money you really need

The preparation section will:

1. Prepare for raising equity capital (writing a biz plan, creating financial statements, preparing pitch, etc.)
2. Adequately prepare to secure a loan
3. Provide detailed tips to the fundraising process

And, finally, the connect stage will:

1. Teach you how to get exposure to your investor/lender audience

The roadmap is now available for all DealReady Subscribers! To access the program, login to your entrepreneur console.

This morning, I was chatting with one of our part-time student employees who told me about one of the questions he was asked in his interview with a Fortune 500 company this week.

Here it is:

“If it’s 3:15, what is the angle between the hour and the minute hand on the clock?”

I’m glad to say that I have been an entrepreneur from the day I left college.  I’ve never had to deal with silly interview questions like that one, and I never will.