You need to secure money for your project. You visit venture capitalists to see if you can get that money. A venture capitalist views your project as a pure investment. A venture capitalist has no emotional attachment unlike you. You need to write a proposal that is structured around a venture capitalists needs, not yours. What may interest you may have no relevance to your potential funder. You need a business plan that is 'investor-focused'.
An investor focused business plan contains relevant information about your project. It addresses concerns, questions and should allay fears that any potential venture capitalist may have. It should meet their needs exactly. Venture capitalists exist to make substantial gains. They want to see a good return on investment. By compiling an investor focused business plan, it will be clear to Venture Capitalists that you are focused, prepared and competent.
There are four areas that need to be addressed: Management Responsibility Know Your Markets Know Your Product Know How Management, Markets and Product Make Money
Management Responsibility The strength of management assigned to the project can make or break your proposal. Venture Capitalists need reassurance that you can manage their money. They will want to see a demonstrable track record in areas specific to the project you are pitching. The ability of management will be tested so be very prepared.
Know Your Markets Venture Capitalists will need to see where your income will be coming from. Your company must demonstrate a strong understanding of your customer base and be able to fulfil their needs. Your plan also must address any potential new or growth markets. Illustrate any research you have conducted to emphasise this.
Know Your Product Venture Capitalists will want to fully understand your product. They will want you to demonstrate how the product that they are funding will attract customers. The information in this section must be extensive and also feature any potential expansions or upgrades that your product will feature. This will show that you have thought about long-term growth.
Know How Management, Markets and Product Make Money It must be demonstrated that management can create links and paths between customers and product. This element must be very strong as ambiguous information, or an assumed relationship will scare off any potential funder. Create a step-by-step guide of how their money will be processed and how the customers money will be received. This has to be clearly shown.
Tie in these points together and you are already in the top 3% of all venture capital submissions. Good Luck!
Dominic Dirupo survived the Tech Boom and Crash with Goldman Sachs and Deutsche Bank after graduating with Honours at London's City University. Dont Buy Information is an online resource designed to help every consumer make a business decision for free. No Strings Attached.
An essential step in managing the performance of salespeople is... Read More
Creativity can be defined as problem identification and idea generation... Read More
Creativity can be defined as problem identification and idea generation... Read More
Creativity can be defined as problem identification and idea generation... Read More
Organizations communicate in two directions: internally to staff and externally... Read More
Your people are invaluable to you. They are the lifeblood... Read More
Creativity can be defined as problem identification and idea generation... Read More
The Leader's Fallacy lives! We subscribe to the Fallacy when... Read More
February 2nd, at approximately 7:30 a.m. local time on Gobbler's... Read More
You can't solve a problem with the... Read More
If you run a business, you are sure to have... Read More
In my work with business executives, I have come to... Read More
You're at a networking function and you've made that all-important... Read More
At first blush, it would appear there is no shortage... Read More
People who work with us often struggle with this dilemma:... Read More
Micro-Management and Delegation ... Read More
A paper manufacturer with over 300 employees once announced that... Read More
Effective project managers know how to get the job done,... Read More
A leader's role is to focus on those areas of... Read More
The candy box is a container for all your favourite... Read More
So, you survived the downsizing. Your company did something that... Read More
Before you start your own business one of the first... Read More
Let me repeat a story I heard many years ago... Read More
Military analysts call this "asymmetrical" war (as if war has... Read More
How you run your business is, of course your business.... Read More
It really is about motivation. After all, what impels someone... Read More
TEAM DECISION MAKING: Managers who invite participation believe that people... Read More
Do you have some goals you want to achieve or... Read More
"Experience is not what happens to a man; it is... Read More
Do you own or manage a computer consulting company? Are... Read More
Performance appraisals aren't fun. But a lot of the time... Read More
I heard this back a few years ago. The boss... Read More
Over the past couple of days I've been setting up... Read More
Does the idea of program evaluation make your stomach churn?... Read More
What happens when a Project Manager asks one of his... Read More
Okay, so you've figured out what kind of meeting is... Read More
In a management role procrastination can seriously hold back progress... Read More
Even a well-planned teleconference can go poorly. Some people treat... Read More
Organizational structure can inhibit or foster creativity and innovation. The... Read More
People management and leadership has become a major topic of... Read More
Creativity can be defined as problem identification and idea generation... Read More
Creativity can be defined as problem identification and idea generation... Read More
This article relates to the Work/Life Balance competency, which investigates... Read More
It's great to be multi-skilled?be able to type your own... Read More
When you're starting a business, you might wish for a... Read More
We all see it . . . business markets are... Read More
If you think ahead and plan, many nightmare panic and... Read More
In today's business environment with increases in staff reductions and... Read More
Some time ago we had the privilege of working with... Read More
Maximization methodologies have long been used in business to produce... Read More
The day job as a manager is all about managing... Read More
Each year many people create a list of resolutions designed... Read More
The role of a manager is evolving in response to... Read More
A few weeks ago I asked my readers what the... Read More
PERFORMANCE APPRAISALS BENEFIT THE ORGANIZATION:Appraisals help spot employees with potential... Read More
If you are like most business people, voice mail has... Read More
You've made the plans, built the quality system and conducted... Read More
Whether you are training preschoolers in the classroom or executives... Read More
Someone can say, 'Why do you oppose this?' So I'd... Read More
Project heroes. We've all heard of them. Some of us... Read More
Meetings can be the life-blood of an organisation or the... Read More
Escalating gas prices...tensions and turmoil in the Middle East...a struggling... Read More
Many companies have dress codes, which include jewelry. Some companies... Read More
When you know you need to shift up a gear,... Read More
I have a short story to share with you about... Read More
Outsourcing is when you hire outside professionals or services to... Read More
Business Management |