A summary of things you should know about Show Me The Money according to Alan Barrell: Introduction In this episode Alan Barrell takes a deep dive into his book, ShowRead More
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]]>In this episode Alan Barrell takes a deep dive into his book, Show Me The Money where he takes you on a real-life journey of creating a new business.
In his book, Barrell walks you through situations based on practitioners who got the basic right, know where the money is, have prepared for fundraising, know how to manage intellectual property, and understand the value their company brings.
This book is perfect for the entrepreneur that plans on utilizing investors to fund a startup and have difficulty managing the external factors involved in doing business.
It’s different by degrees – it is written by practitioners and not by academics. It’s based on expertise gained over the years. There are lots of case studies in this book talking about the real world and the basics.
It depends on the reader. You could read from front to back or skip around if you feel the need.
I would want the reader to take out of the book that the most important factor in everything we are writing about and thinking about is people. The most important thing if you are dealing with investors is the issue of real understanding and trust.
In chapter one the book begins with the first principles. We are very heavy on insisting that people really assess their viability and make sure they are ready before getting it going. If you haven’t started a company you need to really think hard about whether you should and whether you are ready to do so. And when you start the company it is important to get the basics right. We see so many companies that start to do well and then they find that they don’t have the basics in place. You need your basics, management accounts, and proper process in place from day one. We spend a lot of time in the book insisting you think about these basics.
Once you have your basics down you will need money to start your business and in chapter two we go over the market for money. I talk about where the money is generally, what money you can get and what the options are that you have. I always tell my students that the best source of money we will find is our own customers.
In chapter three we get into the whole issue of preparing for fundraising. This is something I have spent a vast amount of my life doing with young people and with myself. The preparation for fundraising is so important and in this chapter we are trying to get the reader to think about the sources and investors. You will need to prepare yourself very carefully for the encounter you will have with these people.
In chapter four we look at competitiveness and in some detail at intellectual property and how to manage that. When it comes to intellectual property you must work with the experts. Nobody in my view should try and do a deal of any magnitude without a smart lawyer at their right hand.
In chapter five we look in a bit more detail at some of the new sources of funding that I have spoken about such as impact investing, venture philanthropy and grants.
In chapter six we deal with the often very difficult subject of valuation and financial ratios. Very often entrepreneurs falter at the stage of valuation and of course the investors will try and value the company at a lower value than the entrepreneur. Valuation is not all about calculations and mathematics it is about understanding the market for money and how investors will value your company.
In the final chapter of the book we talk about what to do after it is all over with, after you’ve been paid. The important element we go over is managing your investors and we also get into the conflict that can occur between the different investor directors. We also talk about the skills needed to help manage the investors who put a significant amount of money into your company. And in this chapter of the book we refer to the need to make sure that you have a clear view in your mind of the complete supply chain of money.
“You look at things and ask why but I dream of things that never were and ask why not.” – Unknown
I live in the wonderful city of Cambridge where I would say we have the closes thing to Silicon Valley. I work part-time at the University of Cambridge as the Entrepreneur in Residence. I’ve done a lot of work with larger companies. I’m a scientist, turned businessman, turned investor.
The main inspiration was a huge interest in new business creation. It’s the new businesses and startups that are driving the economy of the world. I am passionate about new company startups as a means of growing economies and societies.
Built to Last: Successful Habits of Visionary Companies by Jerry Porras and Jim Collins
Buy Show Me The Money by Alan Barrell on Amazon today
Visit AlanBarrell.com to learn more about Alan
Follow Alan Barrell on Twitter
For questions contact Alan by email here
Download the full transcript here
Listen on iTunes, Stitcher , and SoundCloud
Related books: Walk Away Wealthy by Mark Tepper | From Idea to Exit by Jeffrey Weber | PACE by Jesse Mecham
Relevant advice and tips: Top Financial Mistakes Entrepreneurs Make When Creating a New Business
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]]>5 Reasons Why Every Entrepreneur Should Read Books Be it a children’s fable, a book of poems for the hopeless romantics, or a how-to guide, a book is one companionRead More
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]]>5 Reasons Why Every Entrepreneur Should Read Books
Be it a children’s fable, a book of poems for the hopeless romantics, or a how-to guide, a book is one companion you cannot do without, whatever stage of life you are in. But is it any good for an entrepreneur? The simple answer is – yes.
Whether you are planning to start a new business or are already managing one, reading can be a great habit. If you haven’t inculcated it yet, it’s high time to do so. Also, don’t let time constraints hinder you from reading. It will only do you good.
Why is reading a good habit for entrepreneurs? Here are 5 reasons for this.
Reason 1: It enhances conversational skills: Well, Dale Carnegie’s ‘How to Win Friends & Influence People’ remains a bestseller still today! Whether it’s in the personal or professional space, communication is of paramount importance for success.
And when it comes to entrepreneurship, a little communication error can lead to big trouble.
‘Crucial Conversations: Tools for Talking When Stakes are High’ by Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler is another good example of how a book can enhance your conversational skills and help you win over challenging situations.
Reason 2: It helps understand leadership: Are leaders born? Or, are they made? What makes a great leader? What differentiates a good leader from a great one? A book can give you the answers you seek. And help you identify and hone our leadership capabilities.
‘Strengths Based Leadership’ by Tom Rath is an excellent choice in this regard.
Based on a broad survey of great leaders and their followers, this book is quite an eye-opener. Another good read is ‘Leaders Eat Last’ by Simon Sinek. Here he takes up the question of the way leaders achieve what they seek.
Reason 3: It offers business insights: Whether you need to craft an organizational blueprint, guide the people in your team or handle the numbers, the right books can help you attain the knowledge you want to effectively manage every aspect of your business.
A good example is the bestseller ‘Good to Great’ by Jim Collins.
In it, he elucidates what distinguishes a good company from a great one. And how a good one can become great by following the right methods such as identifying their best qualities, confronting harsh business realities, building and maintaining pace.
Reason 4: It facilitates work-life balance: When you start a business on your own, your entire focus is on it. And often your personal life suffers. This imbalance created by the pressures of work and life compelled Arianna Huffington to write ‘Thrive’.
In it, she redefines success, with the third metric of well-being, along with power and money.
Co-founder and President of Huffington Post, Arianna Huffington was the epitome of success, if you consider it from the perspectives of power and wealth. But her physical and mental self were suffering. That’s when she discovered the third metric of success – well-being.
Reason 5: It keeps you on track: ‘The E-Myth Revisited’ by Michael E. Gerber is a soul-stirrer for entrepreneurs. In it, he identifies the biggest myth of entrepreneurship – that it is something heroic, a superhuman effort to overcome obstacles and attain success.
It’s a reality check; it takes you through the stages of a business, from its birth to success.
Another superb book is ‘The 4-Hour Workweek’ by Tim Ferriss. If you don’t take the title quite literally, you can sure gain knowledge about how to work smart instead of how to work hard. And achieve success with this method too.
Just take your pick and learn from the people who have been there, done that.
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