What makes a successful entrepreneur? An entrepreneur must wear many hats in the process of starting a new company, but one of the traits that sets an entrepreneur apart from others is the ability to successful raise money needed to get a company off the ground.

Start up capital is essential for new businesses to succeed.  Unless an entrepreneur has substantial savings to use as start up capital, he or she will need to ask for money. Raising capital for business funding is not easy. It requires a bit of diplomacy, flattery, enthusiasm, vision, as well as a host of other qualities to convince people to part with their money and invest in a new business.

What traits do venture capital firms usually see in successful fundraisers? Here is a list of skills and traits you might need to be a successful venture capital fundraiser.

1. Networking Ability – A successful VC fundraiser needs to have a large pool of potential investors in which to pitch his or her idea. A smart entrepreneur knows the law of averages and will not narrow a fundraising search to just a few possibilities.

1. Targeting Ability – Not only does a successful start up capital fundraiser need a large set of contacts, he or she needs the ability to narrow down a list to the ones who the best candidates. Rather than a ‘scattershot’ fundraising approach, efforts are focused on VC firms who fund new companies similar to the size and scope of his or her new business.

1. Enthusiastic Communication – Finding investors requires an ability to make a pitch to those investors that convinces them of the potential of the new business. An entrepreneur who has passion and enthusiasm in the way he or she communicates to investors will have a better chance of receiving funds.

1. Preparedness – An entrepreneur who expects to receive VC funding never wings a presentation. Every detail of a presentation is practiced and honed until the message is exactly right.

1. Tenacity – Rejection is rampant in the world of VC fundraising. A successful VC fundraiser accepts this as part of the job and begins again when he or she meets a dead end.

1. Patience – No entrepreneur who needs money “now” will succeed. A successful VC fundraiser knows that there is a process to fundraising, including attracting the right venture capital firm, due diligence, and negotiation.

1. Flexible but firm Negotiator – Negotiation requires the ability to be flexible, but also the creativity necessary for the give-and-take of the process. A good negotiator will also recognize a good deal and have the ability to walk away from an unfair deal.

1. Realistic – Though enthusiasm is good, knowing the limitations and risks of the business, and being able to talk about them with venture capital firms, is also essential. A VC firm will easily see through a “smokescreen” of all positives and wants to know that the entrepreneur accepts and is aware of the risks as well.

While every potential venture capital deal hinges on various factors, there are three important valuation factors that fit across the board for venture capital firms. Here is a look at the top three valuation factors that could give you an edge when approaching a venture capital firm.

1. Management is Everything

In a poll conducted by the authors of Inside Secrets to Venture Capital, venture capital firms were asked to rate the factors they use to determine the value of a potential investment. By far, the top rated factor was the quality of management.

VC firms were asked to rate the factors on a scale of 1 to 5, with 5 being the highest importance. The numbers were overwhelmingly in favor of the management team, with nine out of every ten VC firms rating this factor a 4 or 5. Seven out of ten rated this top factor a maximum of 5. The average rating for management team was 4.5, and no other factor even came close.

What does this tell you? Make the effort to recruit and attract the best possible people for your company. VC firms know the value of a management team who can weather storms and guide a small business to big success.

2. Size of Market

The next most important factor in the poll was the size of the market. The average rating for this factor was 3.8 out of 5.  30 percent of venture capital firms rated this as the highest importance. Thus, it is important for you as an entrepreneur seeking start up capital to find a market that is sizable, yet penetrable.

3. Product Qualities

Product quality was actually third on the list of top importance to venture capital firms. Only 25 percent of respondents said this was top importance, and the average rating (out of 5) was 3.7.

Along with product quality, venture capital firms look at the product’s uniqueness, the brand strength, and potential patent and intellectual property assets.

With these factors in mind, now you have an inside look at what venture capital firms are seeking. Be sure you design your new company with these top factors, and you will stand a better chance of getting a “yes” for venture capital.

So you want to become an entrepreneur? Believe me, you are not alone. The idea of becoming an entrepreneur has a long history. Entrepreneurship has been around since ancient Babylon when business was governed by some of the oldest set of written commercial laws. The actual word “entrepreneur” is descended from the Latin word, prendere, and later, the French word, pendre, which means ‘to take”. Webster’s dictionary defines an entrepreneur as a person who runs a business at his own financial risk

By definition, any person can become an entrepreneur. Entrepreneurialism is a career option that anybody can pursue provided the right effort. However, to say that any person can become an entrepreneur does not necessarily presuppose that just anyone can be successful at it. So what does it take to achieve entrepreneurial success? Ultimately, I think that the winning combination is great entrepreneurial genes coupled with learned business tools. Successful entrepreneurs are visionaries who are innately able to see opportunities where others do not. However, recognizing opportunities is not enough to carry the entrepreneur through the inevitable challenges of starting a new venture. That requires capability, namely being willing and able to do what needs to be done. The following are several character traits and work ethics that are common among successful entrepreneurs.

• They are visionaries gifted with intuition for opportunity.
• They are overachievers with a passion for venturing.
• They are self-confident and highly competitive with an above average risk-taking tolerance.
• They are attuned to the importance of money and are careful about their finances.
• They are equally motivated by monetary rewards and the internal rewards of creating new ideas the solve real life problems.
• They are extroverted, sociable and charismatic.
• They have a good personal work ethic and are respected as fair players in the business world.

So, do you have what it takes to become a successful entrepreneur?

Personally, I believe that any person with a passion for their venture, desire to succeed and a willingness to work hard, take risks and forgo short term success for long term goals can be a successful entrepreneur.