Perhaps the most important success factor for a venture firm is to ensure that it has a strong, high-quality deal flow. Deal flow is like getting "at bats" in baseball. If you get enough pitches, eventually you'll learn when to swing and hopefully knock one out of the park. But the best deals sometimes arise from situations where the opportunity had to be created.

I hear too often from people that they are waiting until the right deal or idea comes along and when it comes they'll be ready to strike. This is a rather passive approach. Successful business leaders and investors are proactive hunters, creating ideas where they did not necessarily exist. They can handle some ambiguity, believe deeply in themselves, and understand that the starting point may not be perfect. If it's approximately correct as it can serve as a means to a bigger goal. Let me illustrate with a few simple examples:

1. My partner John Hamel is a great example of finding value in yet-to-be-identified opportunities. I love telling the story of how he found his house. He found a condo complex he loved, but the unit that was available was not ideal. He decided that it would be a good fallback option, but only after he wrote a letter to every tenant in the building asking if they were interested in selling. The result was that he found one of the very best units at a more attractive price than the unit he was originally considering.
2. One of our first venture investments came about at a time when the company we wanted to invest in was not seeking money as much as it was looking for advice. We did advisory work in exchange for equity, developed a trusted relationship, and then finally had an opportunity for significant investment.
3. I've been plain inspired by people who have created their own job opportunities. The downturn has forced many job seekers to be a little more creative. One example is a gentleman who shared with me how he was willing to work for deferred comp that would only be due if he performed against tangible metrics. I loved the chutzpah and was happy to hear that he has succeeded in a position that now pays more than his previous one. In a similar story, a co-founder of my former company landed himself a top executive post by offering to serve on special projects for a couple of years. By working first in a less desirable but available position, he demonstrated his capabilities and achieved real results. He earned respect and then the position he wanted.

What do these stories have in common? They're about negotiating with imperfect situations as opposed to letting those situations control you. If you're creative, positive, and proactive, good things have a way of coming along.