In our Insights and Opinions section this morning, we turn again to angel investor Dave Berkus, who tells entrepreneurs: Fail fast.
Professional investors want to live by this rule. With the first round of funding, there should be milestones to be achieved. If they are not achieved within the expected time, the reasons must be analyzed and acted upon to avoid loss of capital beyond plan or expectation.
And if the vision of the entrepreneur is flawed, or the product impossible to create within cost and time expectations, or the demand impossible to quantify, or revenues never close to plan, then it is time to rethink the plan and product. An excellent management team is perhaps the greatest asset for any company because it is just this team that has historically been able to make a drastic alteration of the plan, ultimately making a failing vision into a wildly successful one. (More...)
Read the rest of Dave's post, Fail Fast!.