Top 10 Rules of Thumb for Startups

David DrakeIn my more than 20 years as a serial entrepreneur and investor, I have seen a few common mistakes among startups and entrepreneurs. Here are some tips to fix those mistakes:

1. KNOW WHAT YOU DON’T KNOW

When I visited New Zealand, I found that majority of their small and medium-sized enterprises had no board advisors at all. This is the problem of most startups: they don’t know what they don’t know. Most startups feel that asking for help is a sign of weakness.

My advice is to have board advisors (comprised of people from different industries with diverse backgrounds) whom you can engage a couple of hours per week. Likewise, attend quarterly board advisory meetings where you present and account for your accomplishments, plans and goals. Having a board of advisors can help you learn the questions you do not know.

2. KEEP PEOPLE INFORMED

Start monthly newsletters.

The first newsletter should have about eight sentences. Send the newsletter to your board advisors, as well as to existing and potential investors. The goal is to keep them informed of events and challenges in your startup. When you need capital investments, these investors will be ready to commit funds since they know and understand how you are running the business.

The second newsletter should be equally as short as the first. Send it to your distributors, suppliers, partners, executives, fans and customers.

3. BUDGET YOUR OPERATIONS

Work closely with an accountant, and try to have a budget for your next month operation or next year. You will best understand your business expectations.

4. BUILD YOUR STRATEGY

Focus on your strategy, and stick with it. Though you may change your plans, just realize that you can only do so much. Focusing on your strategy will be your biggest challenge, but it should also be fun.

5. IDENTIFY YOUR COMPETITOR

A competitor is a good sign of a robust market. Identify direct and indirect competitors. The competition will tell people where your company stands and what sets you apart.

6. FOCUS ON THE WHY

Identify what drives people to buy your product or use your service. Focusing on the ‘why’ can motivate you to accomplish things you have never done before and help you pursue your goals.

7. LOOK AHEAD

Entrepreneurs seeking capital for their businesses should look forward to exciting new developments in 2014. New laws will open up more opportunities and new ways to secure financing and get funding.

8. TAKE ADVANTAGE OF NEW TECHNOLOGIES

Social media and internet technology are instrumental to all new ways of financing. You might find a new market or niche altogether.

9. WRITE A NEW BUSINESS PLAN

Writing a new business plan with an executive summary will help you focus and stick to it. Prepare a concise, two-page executive summary.

The world’s largest pension fund ADIA showed me that executive summaries have two pages, maximum, with up to six addenda. It should contain: name of company, state of incorporation, year incorporated, shares outstanding, compensation offered for capital, industry sector, executive names, geographical area and address.

Include the full bio of your executive team in the addenda because investors are always looking for a team. The first sentence of the first page should explain exactly what your firm does. I pass on too many deals many times when I cannot figure out what the firm does in one sentence or one paragraph.

10. PLAN AND PRACTICE YOUR PITCH

Practice your presentations in front of a mirror. People love to get instant feedback from everybody in the room. Initially, do this with friends and people you know. Practice makes perfect.

These are just little things startups often miss. If left undone, these can be their biggest mistakes.

Recent Posts

Scroll to Top

Robert L. Duncan – corporate strategy, and investor relations

Robert L. Duncan brings extensive experience in finance, corporate strategy, and investor relations to companies seeking growth and capital. He specializes in guiding businesses through the complexities of securing funding.

Duncan’s primary focus is on working with companies in the Food, Energy, Medical, and Housing sectors who are seeking growth capital. He plays a crucial role in assisting these borrowers in securing both loans and equity financing, leveraging his expertise to navigate financial markets. His responsibilities also include managing day-to-day operations and working with financial institutions on loan portfolios.

Earlier in his career, Mr. Duncan served as President and CEO of Pinnacle Investor Relations, LLC (2010-2015). In this capacity, he developed and executed impactful marketing and advertising campaigns for publicly held companies, presenting them directly to investors and investment managers. A testament to his strategic approach, he formulated campaigns that led to a 40% increase in firm revenues within a six-month period. He also has experience in client engagement and negotiation from his time as a Sales and Leasing Consultant at Mercedes Benz of Buckhead (March 2015-May 2018), where he consistently achieved recognition for his sales performance.

Robert Duncan’s academic background includes a Master of Business Administration from the University of South Carolina (1985). He shares his practical knowledge and insights as a frequent Guest Speaker at esteemed institutions, including the Clemson University Master of Accountancy Program (since 2023) and the University of Georgia Law School (since 2024), engaging with the next generation of financial and legal professionals.

Fadi Malouf – Strategic Buyer & Business Growth Architect

With over two decades of experience in scaling businesses and leading high-impact M&A strategies, Fadi brings deep expertise in acquiring and growing ventures across tech, real estate, and service industries. As President of FM Enterprises, he partners with private equity firms and investors to drive enterprise value, scale operations, and position companies for high-value exits. Fadi has access to over $2B in funding, a network of 800+ investors, and a proven track record of building companies from $200K to $5M+ in under a year. His structured, ROI-driven approach has led to successful outcomes across 62 U.S. healthcare locations, multiple private ventures, and large-scale advisory roles. At the heart of his work lies one mission: to engineer legacy-driven businesses that win.

Irina R. – Operations Manager | Digital Business Strategist

Irina R. is a seasoned Operations Manager with over 4 years of experience in project, team, and operations management for digital businesses, complemented by nearly a decade of leadership and management expertise as a B2B Account Manager at a French multinational universal bank and financial services company – Société Générale.

 

At Angel Investors Network, Irina plays a pivotal role in streamlining operations, optimizing workflows, and ensuring seamless execution of both internal and external projects.

Luisa B. - Web Designer and Marketing Design Strategist

Luisa B. is an accomplished Web Designer and Marketing Design Strategist with over 5 years of experience in web design, creative design, and digital marketing. As the creative lead, she collaborates on planning, developing, and launching high-converting campaigns that drive business success.

At Angel Investors Network, Luisa guides the design team, developing high-impact design and marketing solutions that ensure brand consistency and contribute to the successful launch of projects fueling company growth. Her creative expertise and collaborative approach strengthen Angel Investors’ digital presence.

John Reighard, Partner & EVP

John Reighard is a Partner at Angel Investors Network, where he leverages his expertise in business development, networking, and investor relations to help entrepreneurs secure funding and scale their businesses. With a passion for connecting people and ideas, John plays a pivotal role in fostering strategic partnerships and guiding business owners toward sustainable success. In addition to his work with Angel Investors Network, he also owns and operates two other small businesses.

 

A Connector and Networking Extraordinaire, Business Coach/Consultant, and Inspirational Speaker, John is deeply committed to helping individuals and businesses achieve meaningful results. His mission is to empower entrepreneurs and leaders to create lasting impact through strategic growth, financial acumen, and powerful relationship-building.

 

John has trained with, been mentored by, and provided consulting services to some of the world’s top thought leaders in personal development and business transformation, including Jack Canfield (America’s #1 Success Coach and Founder of Chicken Soup for the Soul), Stephen Covey, T. Harv Eker, Bob Proctor, Blair Singer, Robert Kiyosaki, Neil Rackham, Marcia Wieder, and Roger (Bud) Seith. These experiences have shaped his ability to guide clients through personal and professional growth, helping them unlock their full potential.

 

Before joining Angel Investors Network, John took a sabbatical in 2002, living with his family in Norway, Portugal, and France—an enriching experience that followed 15 award-winning years in Silicon Valley. During his time in the tech industry, he worked for leading companies such as Lucent Technologies, Exodus Communications, Octel Communications, and Brady Corporation.

Meet Jeff Barnes

Jeff Barnes is a former US Navy Nuclear power plant operator on a Submarine, Navy diver, risk management director, technology enthusiast, business growth expert, advisor and management consultant. Mr. Barnes sits on the boards of startup companies, runs a venture fund, supports non-profits supporting military vets, and spends most of his time helping CEOs and founders of growing companies automate, systemize, and scale to 8 and 9-figure valuations.

With over 20 years of technology, systems, operations, and marketing experience, Mr. Barnes has advised over 1,000 companies, invested tens of millions in advertising campaigns, and helped companies generate over $1 billion in investment capital.

As the chairman of Angel Investors Network and founder of Digital Evolution Marketing Group, Mr. Barnes has worked with founders, entrepreneurs, and CEOs around the world to accelerate the growth of their businesses and achieve substantial exits. He’s a father, husband, veteran, business owner, advisor, and mentor, and his true passion in life his helping others achieve success, freedom, and autonomy in theirs.