I see this all the time.  People have good ideas maybe even great ones and do nothing.  They do nothing because they have built a life around having things – cars, houses, vacations, games, toys, etc. and need – no must have a steady income to support their addiction to things.  This need for a steady income adds to the reasons why many people do not go after their dreams.  I know a great engineer who is busy creating great products for his company when he could go off and create them for himself.  I know a product manager who had five “fund-able” ideas and yet took a job working for someone else working on a product that did not excite him.  A know many people like this as they continue on in their jobs because they create their cages and shackle themselves to their own desks.

I have done this as well – so if you feel this way do not despair you can break the bonds.  get rid of the junk – reduce your dependence and set a goal to buy your freedom from the tyranny of the paycheck.  Once you are free you can try all the things you dream about.  You can go “All In”.

When you do go for it their will be investors waiting.  If you want them (different story).

• Market Size
• Management Experience
• Business Model
• Ability to attract clients
• What problem are you solving
• Can you identify the people who want the solution
• Can the people who want the solution afford to buy it
• etc. etc.

These are great things to think about but I would like to add the following for consideration:

• The Idea: This is probably the superset of all questions asked above so answer them.
• Management: Why did I pull this one out because in Louisville “You always bet on the jockey not the horse”.
• Timing: First is this an idea or product that will take years to catch on or is it a little too late?  Second how long will it take to grow the company and how long will it take to get my cash back.
• Valuation: Too frequently a management team does not address the valuation question in the pitch – preferring for the investors to set the price.  Hey that falls under that quaint rule “Who ever names the price first loses.” – Don’t believe it – name the price get your money and grow your business.

Look I hate to add four more things to the mix but thinking about them before you do your pitch really will help.

I think – that is wrong.  I have never seen a good idea or business not receive funding.  In fact the best deals always get money in fact some get more pledged than what they need (which causes different problems). 

If you don’t receive funding it is for one of three reasons:

1. You did not present your idea or business to an investor group that has the right risk profile.  An example would be presenting a life sciences opportunity to me.  I know nothing about life sciences and so I do not invest in them.
2. You did not sell your idea.  Hard to hear but often is the case.  That is why you need a friend – a sponsor or someone that can help coach you on your pitch.
3. Your idea just is not good enough.

So what should you do?  Try to determine which of the three reasons caused you not to receive funding and correct it.  Don’t just hang your head and lay blame at the potential investors feet.  Also don’t go back to that same investor pool unless you have totally overhalled your idea.  It is a waste of time.  Fix It.  Change It.  Practice it.

Good ideas always get funded!