Raising venture capital is a skill-set required for many technology-based companies. One key to successful fundraising is understanding the venture industry’s filters, which are derived from most venture firms’ economic structures. Knowledge of this foundation can help an entrepreneur put together favorable financing and information to negotiate key deal parameters of term sheets such as founder vesting, board construction, etc.
Dan Lok is referred to as the King of Closing. As he put it out in a tweet, “You can’t achieve the goals you’re thinking of right now unless you do this one thing… Manage yourself: your emotions, your state, your skills.”
As an entrepreneur, it is crucial to understand the need for a product, and it doesn’t matter if this product is costly as long as there is a demand for the same. Your aim is to make your customers understand why this product they need is going to cost so much. In his blog post “High Ticket Closing 101 – What Exactly Is High Ticket Closing?” he explains how an entrepreneur’s mindset makes the difference between success and failure.
Dan Lok is one of the highest-paid and most-in-demand consultants in the luxury and high-ticket space. He is a self-made multi-millionaire, and his videos on copywriting have been exceptionally well received across the world. Before he became “famous,” he was a copywriter that gave him his first taste of success since he could bring in $10,000 every month. From there, he went on to become a public speaker and eventually a high ticket closer.
As an entrepreneur, it is almost a given that regular strategies of the old market will not work for you. The need for a new product means that conventional ideas will not work and it requires innovative thinking to close the deal. Entrepreneurs will have to find ideas that work rather than those that just tick the boxes. The current tools and methods will not work for solutions that require innovation.
More startups die of indigestion than starvation. It’s easy for an entrepreneur to say, “We have a huge market, and if we only get one percent of this $5 billion market, we can be so successful”. However, to close the deal takes a lot of analyzing and appealing. There is a misconception that the market will flock to any good product. The market is a more prominent source of failure than bad company management. Both new products and better products are vulnerable to new and existing markets.
In new markets, there is no competition. For an entrepreneur, sometimes having no competition is a bad thing because it means pioneering a new market all by yourself. Competing in an existing market is challenging because new businesses have to be a lot better than the competition to be successful.
The real challenge for entrepreneurs is cultivating effective company leadership. The most outstanding leaders are confident and humble enough to admit that they don’t know everything. Suppose a leader knows how to not be reactive out of fear and instead turns to courage to react proactively. In that case, he or she sends a subtle signal to the organization that everything is okay.
It also takes a strong ego to be a successful entrepreneur, male or female. It takes ego, vision, and belief in yourself—a whole combination of things to be strong enough to found a company. With the right tool kit, entrepreneurs have the power to design businesses that optimize human strengths. The ideal business is like a team of rowers that have found their “collective flow state,” or the rhythm in which everyone works together to be at their optimum productivity.