Wednesday, January 18, 2006

Use Your Mental Capital Rather than Venture Capital

Good morning, Billion Dollar Business Creators!

Are you feeling motivated this morning?
I certainly hope so. I know that I am!

The Billionaire Entrepreneurs' Master
Mind put out a press release this morning
that I thought you might find helpful.

Here it is:

Entrepreneur Lesson: Start Ups Should Avoid Venture Capital
and Focus on 7 Key Tasks Instead Based a New Study

Download this press release as an Adobe PDF document.

When David defeated Goliath, he used only a sling and some
stones. Leveraging his skill and focus, David aimed his
stones at the right spot and the rest is history. Entrepreneurs
today launching start ups are finding that venture capital
makes them vulnerable like Goliath while mental capital
makes them agile and effective like David.

Weston, MA (PR WEB) January 18, 2006 ― Entrepreneur
start ups seeking venture capital are less likely to create
billion dollar businesses than start ups that focus on 7 key
tasks based on a new study.

The Billionaire Entrepreneurs’ Master Mind,, a global learning
organization that helps entrepreneurs create billion dollar
businesses from start ups headed by Donald Mitchell
(co-author of The 2,000 Percent Solution, The 2,000 Percent
Solution Workbook,
The Ultimate Competitive Advantage and The Irresistible
Growth Enterprise,
examined the large companies that had the fastest growth
under one CEO from 1989-2002.

Most of the top performers were begun by an entrepreneur
as a start up. The majority of these top-performing former
start ups never relied on venture capital. Examples include
Clear Channel Communications, Paychex, Virgin Group and
Wal-Mart. Their beginnings were often humble. Sir Richard
Branson dropped out of high school to start Virgin. Tom
Golisano started Paychex in a one-room office with two colleagues.

Instead of venture capital, the entrepreneurs focused their
start ups on 7 key tasks:
― Creating a major new market or expanding an old one by
20 times
― Reducing the costs of customers and beneficiaries to use
the start up’s offerings
― Adding customers 20 times faster than competitors at
low cost
― Improving the start up’s business model at least every
four years
― Employing a business model that didn’t require much
external equity capital
― Building a management team deep in innovation,
operations, finance and marketing
― Searching to find out what they didn’t know that they
didn’t know.

Donald Mitchell noted: “Venture capital is expensive because
investors are seeking huge gains. Fields that attract venture
capital soon have too many competitors. Venture capitalists
are quick to fire entrepreneurs who fail to meet their business
plan goals. Firms without venture capital learn how to create
leaner, more competitive businesses that can become highly

A press conference for members of the media will be held at
4 p.m. EST today, January 18, to discuss this research and
how entrepreneurs can build their businesses more successfully.
To register for this press conference, send an e-mail before
4 p.m. EST today to e-mail protected from spam bots and
directions to join the call will be sent to you. Label your e-mail
subject as "Entrepreneur Lesson Press Conference".

# # #

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May God bless you.

Donald W. Mitchell
Chairman, Mitchell and Company

Copyright 2006 Donald W. Mitchell