I decided to investigate some of the local angel investor groups. I'm not interested in being an investor myself, not yet anyway, but thought it would be a great resource for meeting other like-minded entrepreneurs. I was disappointed to see that these people are still investing in crazy, "pie-in-the-sky" businesses. It's as if they learned nothing from the dot-com fiasco. They still believe in business plans that will take years to become profitable, if they ever do at all. I signed up for a mailing list put out by one of these investors (who, by the way, always includes his/her PhD title in the messages) and what I've read so far explains a lot. This person was talking about how entrepreneurs are good at coming up with ideas but terrible at managing a business. From my experience, I strongly disagree with this statement. The message went on to explain that the inexperience of entrepreneurs is the reason these investors replace the existing management with their own people whenever they decide to fund a new venture.
Well... "their people" are the same old-school MBA-types who have managed to bankrupt one major corporation after another. These are the same people who, with all their experience and advanced degrees, are consistently run out of business by forward-thinking entrepreneurs in their 20s. This was a big revelation to be because it explains why so many young companies with great ideas are so grossly mismanaged in the sales department. They throw out any and all sensible strategies and instead order their sales force to "cold call more," "do more activity," and on and on. Forget all the "old, right answers" such as cold calling. They were right once upon a time, but today they're very, very wrong. Use your head and work efficiently in ways that make sense in the 21st century.