Home Business
Lindsay McCormick on Investing in Entrepreneurs
[as originally published on homebusinessmag.com]
Lindsay McCormick is a name that has been most closely associated with professional sports – from “Monday Morning Cheerleader” (her column for Esquire) to “Sunday Night Football,” she’s been a host, analyst, journalist, and correspondent for the NFL. She also figuratively stepped off the field and into the ring when Showtime chose her to be their guest correspondent for “The Fight of the Decade”– Mayweather vs. Pacquiao. And it’s ultimately through sports that Lindsay entered the investing and entrepreneurial arenas, which started with her partnering with ePlay Digital to market their augmented reality sports apps. Lindsay is now a judge on the panel of “Entrepreneur: Elevator Pitch,” currently streaming its third season. Lindsay favors tech investments and, if it’s sports-related, all the better. Home Business Magazine got a chance to speak with Lindsay McCormick about her entrepreneurial endeavors, advice she’d give to those looking to try their hand at investing, and more.
Q: Most people probably know you from the sports world. How did you arrive on the “Elevator Pitch” panel?
A: After a decade in sports and entertainment, I was looking to expand into other fields. At an event sponsored by Entrepreneur Magazine, I met David Meltzer, and he introduced me to Entrepreneur President Bill Shaw, who felt my experience in investing, sports and tech was perfect for the show. Then I got cast for “Elevator Pitch”!
Q: Were you interested in investing in businesses prior to “Elevator Pitch?”
A: Very much so. When it comes to having financial freedom and the possibility of supporting your family, the average salary in sports journalism might not always cut it. As my father was a business owner and entrepreneur himself, I always had my eye on incorporating that field. While I’m constantly evolving as an investor, I’m most interested in ideas that have a humanitarian and/or life alternating potential.
Q: How did you educate yourself about investing, markets, etc.?
A: I’ve been fortunate enough to have a special blend of business mentors, financial advisors, and learning by trial and error. Theory is great, but if you’re not putting yourself out there – even in the smallest ways – you won’t learn very much that sticks.
Q: What is the optimal time when an entrepreneur should begin seeking investors? Is there a “too early” and a “too late”?
A: If an entrepreneur has an idea but no proof of concept or firm business plan, they aren’t likely to find venture capital. Angel investors can always come along, but you can’t count on that. I’ve certainly been pitched ideas where I’ve thought “this is too early.” On the other end of the spectrum, when an entrepreneur comes to me very late in the game, when they’ve already had rounds and rounds of funding, it sometimes feels like the moment has passed and I’m swimming in a sea of institutional investors. Everything is case-by-case, but there does tend to be a sweet spot.
Q: On “Elevator Pitch,” perhaps you’ve seen some pitches for products or services that left you scratching your head (i.e., you didn’t recognize the product’s appeal). What advice would you have for an entrepreneur before they attempt to bring a product to market?
A: To the “Elevator Pitch” contestants’ credit, most of the time I’m not scratching my head, but kicking myself that I didn’t come up with the idea myself. These are people who have found the solution for a seemingly complex problem. Successful entrepreneurs seem to have a knack for identifying (and sometimes even creating) a need, and providing the solution in an ingenious yet simple way.
Q: What is your favorite aspect of the “Elevator Pitch” process? Is it getting in on an opportunity at (or close to) the bottom? Is it knowing that you’re helping foster products that are exciting, innovative, or which will improve the planet or peoples’ lives?
A: I’m most excited about the possibility of improving people’s lives. We’re in the process now of going through due diligence on a deal we made on the show with a technology/product/service that I’ll be thrilled to announce soon. Not only is the business of a life altering quality, but the actual business plan is solid; the entrepreneurs have already shown they can do a lot with a little.
Q: What advice do you have for people who are curious about investing?
A: Don’t be afraid to ask for advice. Do as much research as possible, formulate your own opinions, and then cast them against the input from those you trust. You can also start small. If you find yourself getting swept up in excitement over a potential investment, take the amount you’re thinking of putting in and cut it in half.
Q: Is there a specific personality trait that you see in successful entrepreneurs?
A: Humility. While passion is the fuel, an entrepreneur has to be wise enough to admit what they don’t know. Any business idea is likely to have several ideas nested within. It’s foolish for an entrepreneur to think they are the absolute expert in every field related to their overarching idea. Be passionate and confident about your vision, but don’t think you know everything or can execute every idea on your own.