Writing a Sure-Win Business Plan

Posted by admin in Business Plans on July 9, 2014

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Writing a Sure-Win Business Plan1

Entrepreneurs often look into their business plans as the heart of the startup. This is, according to most of them, the most important document that would ensure that the business is running towards achieving its ultimate objective.

Some business owners, however, fail to see beyond this point. The reality is that business plans are not just important in the day-to-day operations of the company. It is also important in terms of securing the most important element of a business – the funding.

A lot of entrepreneurs think that business plans do not contribute to the decision of a potential investor in funding the business. Some think that investors rely only on the pitch documents that were given to them.

Unfortunately, this is far from the reality. Most investors rely on the business plans when deciding whether or not they should fund the business. The reason is that they would not want to base their decision on documents that they know were tailor-made to impress them. These are intelligent people, and they often look for signs that the person whom they intend to partner with are also intelligent enough to make the business profitable.

This is where the need for a sure-win business plan comes into place. Instead of just writing a bland plan on how the business is expected to operate, the document should also include portions that would pique the interest of a potential investor. These include ideas on how the company will implement crucial projects, as well as handle potential problems that it would face in the future.

The bottom line is this: The business plan should not show the weakness of the company. This does not mean that the document should avoid mention of negative aspects. It should. But instead of leaving it like that, the document should also feature a “plan” on how the management would and should address it.

Instead of featuring the pessimism of the owner, the business plan should showcase the ability of the people behind the business that they are capable of handling every single problem that the start-up may face in the future.

This approach to writing a competitive business plan is an effective way of luring potential investors. It shows potential, and highlights the capability of the owners in thinking through with their plans.

Business plans are not just internal documents that are written for the sake of the employees and the main players of the company. Rather, it is a document that provides an overview of the business to external groups, most importantly the potential investors.

 
More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

Copyright 2014 Funded.com LLC

Equity crowdfunding and venture capitalism: Why it matters?

Posted by admin in Crowdfunding, Venture Capital on June 9, 2014

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Equity crowdfunding and venture capitalism

The United States government has approved a landmark law for entrepreneurs, especially those involved in the small and medium enterprises sector, in 2012. Known as the Jumpstart Our Business Startup – or JOBS – Act of 2012, the legislation enables startups to raise as much as one million dollars through various websites that will be established following the implementation of the law.

There are a number of people, both supporters and critics of JOBS Act, who argue that the law will affect the more traditional venture capitalists. They say that by providing support to crowd funding – or raising funds that come from different people to finance a business – the government essentially removed venture capitalists from the picture.

A number of people are happy with this possibility, but a whole lot more are shaking their heads. After all, venture capitalists, over a period of time, have made it possible for a lot of major businesses to flourish.

The reality, however, is that JOBS Act does not diminish the relevance of venture capitalism in the field of entrepreneurship. In fact, it can be argued that the law will strengthen the system and would enable more businesses to enter the arena. Here’s why:

Crowd funding and venture capitalism may end up having different clients

According to the law, the legislation will enable businesses to raise as much as one million dollars in capital through crowd funding that will be assisted by dedicated online portals. This in itself shows a major difference between the two funding sources.

Based on latest studies, the median of venture capitalist investments in the country in the past three months is at four million. This means that the clients of crowd funding and venture capitalism will come from different backgrounds as they will need different amounts of money.

Instead of “killing” venture capitalists, the law may have just given them the opportunity to find better deals as businesses that need smaller funding will have another platform for them to look for investments.

 

Crowd funding and venture capitalism are made for each other

These two are in fact a perfect match. With the existence of an established system of funding (i.e. crowd funding for smaller businesses and venture capitalism for slightly bigger ones), entrepreneurs will have an assurance that there will be support as their business grows.

Moreover, the existence of crowd funding system should not threaten or drive away venture capitalists as there are always businesses looking for investments. In fact, they can even use the portals to take part in crowd funding initiatives or scout possible partners that are looking for investments.

The nature of the legislation is to provide entrepreneurs – especially business startup owners – with an equal opportunity to look for people who may help them in establishing their businesses. While it is true that the law will create ripples and affect the already established system of funding in the United States, it is imperative for everyone to understand its objectives and see to it that it achieves its goals.

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

Copyright 2014 Funded.com LLC

Dealing with investors: What to do before and after close?

Posted by admin in Private Equity Financing on April 15, 2014

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Dealing with investors: What to do before and after close?

Private equity investors are considered as one of the most important people for those who want start or expand their respective businesses. After all, the amount capital that they provide and the way these are handled are among the factors that make or break a startup.

Unfortunately, a number of entrepreneurs think that dealing with private equity investors are limited to the period when the company or business is raising funds. Some believe that once the funding round has closed, the money will fall any time regardless of how they transact with the partners that signed a deal with them.

The reality is far from this misconception. Instead of forgetting about the investors who pledged to provide funds for the business once the money had been transferred, entrepreneurs must keep in mind the significance of giving importance to these people. After all, entrepreneurs would not want the investors pulling out the money in a middle of a crucial project.

Here are some tips on how entrepreneurs should deal with investors before and after the close of the funding round:

Before the close:

Once of the most crucial things that the entrepreneur must do during the funding round is to find the appropriate investor for the company. This would depend on the type of business that he or she is into. There are investors who prefer medical-related companies, while others want information technology startups, among others.

Regardless of the type of business, entrepreneurs must find a private equity investor, or those who understand the risks of investing in the nature of the business. This would mean that the investor is willing to let go of his or her money for seven years, and put it in a rather risky and illiquid asset.

To counter the risks, the entrepreneur must explain to the potential investor the positive side of the investment – for instance the high rate of return for the successful ones.

Perhaps the most important advice for the entrepreneur is to find an investor who shares the vision of the company. This is highly relevant as it would help in the growth of the business.

After the close

Once the agreement between the entrepreneur and the investor has been signed, the former must continue to look after the latter. This is necessary as it increases the possibility of future contributions from the said investor.

“Taking care” of the private equity investor does not take much. The business owner just has to provide regular updates – whether monthly or quarterly – to keep the investor on the loop. Likewise, requests must be kept reasonable and thoroughly explained. This will surely get the business owner on the good books of the investors.

Dealing with partners, especially private equity investors, is not an easy task. However, doing this the right way will ensure the continuous flow of support for the business.

Secret to Finding Angels Investors: Great Business Plan

Posted by admin in angel investors, Business Plans on March 13, 2014

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Secret to Finding Angels Investors: Great Business Plan

One of the most daunting tasks for business startup owners is finding an angel investor who would be willing to finance the bulk of the company’s expenses. And while there are a lot of possible investors out there, the number of people competing for these opportunities is also huge.

In fact, some information regarding investments showed that less than 10 percent of business startups in the United States get the nod of the most sought after angel investors in the land. This figure, however, should not discourage business owners who are competing for some financial support from investors. After all, one in every ten applicants gets the nod of an angel investor.

The question, therefore, is how will a business owners ensure that they will be the one who will get the coveted nod of an angel investor? The answer is simple – a good business plan!

While angel investors take into consideration a number of things, one of the most important criteria that they look at is the business plan. Thus, having a well polished plan is something that business startups need to have, especially if they want to secure the support of an angel investor.

There are a number ways to come up with an investor-ready business plan. But one of the first things that the entrepreneur must look at is the actual idea for the business.

Ideas should not be the one-paragraph description of what the entrepreneur wants the business to be. Rather, it should be as detailed as possible so that it covers items such as the target market, marketing strategy, capital allocation, and return of investment for possible business partners.

Having a detailed business idea is a good start into coming up with a business plan. This will assure possible investors that you are serious with the business and are not just toying around with the idea.

Ideas are one thing, but detailed understanding of the things that would have to be done to make the idea a real thing is another. Angel investors prefer the latter.

Once, would-be business owners have a detailed idea regarding the comings and goings of the proposed business, then this is the good to time come up with a good business plan.

Business plans are actual documents that detail a number of things that angel investors want to see. In addition to description of the proposed business, the plan should also include a step-by-step process on how the objectives and vision of the company will achieve.

It is necessary for the business plan to be detailed, but not long enough to bore the angel investors to death. Moreover, it should be written in a way that the investors will understand its contents.

Having a good business plan is a good way to attract angel investors. Therefore, business owners must thrive to come up with something that will entice possible partners to enter into an agreement with the company.

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

 

Copyright 2014 Funded.com LLC

The Secret of Successful Angel Investors

Posted by admin in angel investors on February 18, 2014

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The Secret of Successful Angel Investors

Having a lot of money to support potential start-ups is not the only thing an angel investor needs to be successful. While entrepreneurs often think that the only thing an angel investor invests in his or her ventures is the money, the reality is that there are more than just meets the eye.

There is no denying that money is an important element in the job of an angel investor. However, this is not the only one – he or she needs due diligence in selecting a potential business partners.

Diligence is defined as a person’s carefulness and persistence in his or her job or work. It came from the Latin term diligere, which literally means “to value highly” or “take delight in.” But in English, it usually means working hard or doing everything for the job in hopes for a successful career.

This kind of characteristic and personality is important for angel investors. Generally, would-be entrepreneurs simply think of angels as those who have a lot of money which they can use to fund start-ups, the truth is that they are perhaps the most terrifying people for business startups owners. Angels succeed because of their diligence – or more descriptively, being able to train hard eyes to entrepreneurs and make them sweat while doing their pitches or presentations.

More importantly, successful angel investors simply do not stop after scrutinizing the presentations of potential partners. He or she should not stop until the business is actually well established. Angel investors must be able to point out weaknesses on the business plan, as well as put out suggestions for the good of the business.

Unfortunately, not every angel investor has this kind of diligence. There are some who are really good in selecting potential business startups, but fail to assist its owner from achieving success. This situation is not good, both for the entrepreneur and investor themselves.

Some experts said that a number of angel investors simply think that having a lot of money will make a successful business. It is not, as angel investors are expected to help the business owners in transforming their vision and putting everything written in paper into tangent realities.

The truth is that there is no recipe for the “due diligence” needed by angel investors. The idea is very broad, and its execution will have to depend on the situation and relationship between the angel investor and the entrepreneur.

In the end, what angel investors must remember is that money will not be able to buy them success. Diligence does. Having this kind of trait is the secret of successful angel investors, and everyone who invests in business startups with potentials need to have this to ensure a good future.

This is true for business startup owners, who often think that money is everything. It is not. Entrepreneurs must find diligent angel investors who would be able to help them turn their dreams of having a successful business into a reality.

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

Copyright2014 Funded.com LLC

The secret behind the success of small businesses

Posted by admin in Small Business on January 28, 2014

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The secret behind the success of small businesses

People often think that having a small business is a difficult venture and while this is generally true to some degree, it must be emphasized that there are people who actually think of their small businesses as some sort of their pastime activity. This might be considered as a secret behind the most successful businesses.

The reality is that success of a business is relative to the level of passion of its owner. There are those whom people call “passionpreneurs,” who used their love for some things and transformed this into a small business.

For instance, there are people who love greeting cards who decided to start their own greeting card store. There are also those who love animals, and decided open pet shops to earn from what they like to do. These kinds of ventures hit two birds in one stone – establishing a small business and doing what the things the entrepreneurs love.

Unfortunately, having a passion and transforming it into a viable venture will not be as easy as it sounds. There are things that have to be addressed in order for the small business to become profitable and successful. Here are some things that a prospective entrepreneur will have to think about if he or she decides to turn his or her passion into a small business:

The Product

This is the most important thing that one has to think about when starting a business. For those who love greeting cards, it’s easy to think about the product – the greeting cards themselves.

But what about those who are passionate about other stuff like animals? Will the business sell animals, or offer services for pets? This is perhaps the most important question that a would-be entrepreneur will have to ask his or herself. After all, the product is the most important thing for a small business.

Marketing

Business is about engaging other people to avail of the product or service. And while there may be a handful of people who are also passionate about the idea of animals or greeting cards, there is also a need for the business owner to engage other “less passionate” customers to look into business. This is where marketing comes in, and it asks the question: How will you encourage other people who are not as passionate as you are to pay for your product or service?

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

Copyright2014 Funded.com LLC

Important Things to Consider Before Starting a Business

Posted by admin in Small Business on December 13, 2013

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Important Things to Consider Before Starting a Business

Profit is considered by many as one of the most important things that drive people to establish business startups. After all, businesses would not be considered as such if they fail to provide their owners with income that could ensure its continuous operations.

Despite its importance, however, people who are thinking about starting their own businesses must think about other things. It must be emphasized that the profit is just one of the many aspects that business owners have to consider before establishing their startups.

Here are some of the things that potential business owners must also think about before committing into something that could make or break a person’s career:

Reasons for establishing a business

People establish businesses because they want to earn a profit. However, there should be other reasons that could support a person’s decision to enter the world of entrepreneurship. It is often said that successful entrepreneurs are those who do not focus much attention on profit, but rather on the fulfillment brought about by the business.

Moreover, a person must also think about the reasons for choosing a particular type of business – would it focus on the field of medicine, or perhaps services that could improve people’s lives? Thinking about these things would ensure that the business would follow a right track to success.

More importantly, the would-be entrepreneur must think about his or her endgame. What is his or her ultimate goal for the business – to expand in the future and head the company until the end of time, or sell it once it’s profitable enough for the partners? Thinking about this also sets the right path for the entire business.

Resources

A person’s drive to establish a business – while an important element when it comes to entrepreneurship – is not enough if the owner wants a successful startup. Aside from the drive and conviction, there are other more tangible things that potential owners must think about before starting a business.

These include financial capital, enough human resources, and even the right amount of consumers in a specific target market.

Once these things are determined, the next question must be asked: Where will I get this? This is particularly true when it comes to money. While there are cases when friends or relatives shell out to support a business startup, this is not particularly true for everyone. A good way to solve the problem of having financial support is by looking into potential investors who would be happy to partner with business plans that exhibit promise of success.

 

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

Copyright2013 Funded.com LLC

Four ways to secure the nod of angel investors

Posted by admin in angel investors on November 15, 2013

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four ways to secure the nod

Securing an investment from an angel investor is considered as one of the most difficult aspects of establishing a business startup. For many, this is even harder than coming up with a good idea for a successful business venture.

Fortunately, there are numerous angel investors out there who can provide financial support to business startups that have potential to make it big in the market. But for entrepreneurs, the common problem is not finding them. Rather, they have a hard time securing the nod of these angel investors. Here are some ways to improve an entrepreneur’s pitch in order to be able to secure investments from angel investors:

Know the audience

A business pitch should vary depending on the character of the potential angel investor. Entrepreneurs should not rely heavily on a “standard pitch” and develop something that could connect more to the possible partners. A pitch should vary depending on various factors such as age, gender, background, and knowledge on the specific market, among others.

Be in charge

Business owners must show to their potential angel investors that they are the ones in charge of the startup. One can get the trust – and later on the deal – by showing that he or she can effectively manage the business to make it successful. In order to do this, business owners must show their expertise on the market as well as exude confidence that the venture will succeed.

Entrepreneurs, however, are cautioned not to show too much confidence on the business. After all, potential angel investors prefer realistic figures over imaginary ones.

Present relevant information

During presentation of business pitches, a number of business owners often start by presenting too much information as regards the market and the business operations itself. Most of the time, this approach is seen as a move that often ends the potential deal. Rather than presenting too much information, entrepreneurs must stick to basic data that will inform angel investors about the market and keep them interested.

Among these data include the current status of the market, as well as the basic figures concerning the business such as the capital and potential revenue in a matter of years.

Be practical

Finally, business owners must keep it practical when presenting before potential angel investors. While it is necessary to inform them of the business operations, going through every single detail of the business is not an appropriate content for a pitch. Instead, entrepreneurs should just highlight the said information and ask the potential partners if they want to know more about this.

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 

Copyright2013 Funded.com llc

3 Ways to Gain Investors for Business Startups

Posted by admin in angel investors on October 21, 2013

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3 Ways to Gain Investors for Business Startups

There are a lot of things that business owners have to think about when establishing a startup. However, nothing is more important and challenging than finding investors who are willing to listen to a pitch and possibly provide funding for business startups.

Unfortunately for entrepreneurs, finding an investor is not an easy task. Sometimes, one has to talk to at least fifty persons just to find someone who is willing to provide capital for the business startup. The number is even higher in case of startups that focus on special fields such as medicine, among others.

Despite this challenge, there are a number of resources that could help a potential million-dollar business reach the top. Here are some things that could help a business startup owner attract investors:

Establish Social Media Presence

There are a number of social media sites on the Internet that could help an entrepreneur find an interested investor. Having a profile in such sites makes it easier for investors to understand your business and gain their possible trust for a partnership. Browsing through other profiles can also help business owners establish connection to a number of investors who are based in other areas.

Create a List of Possible Investors

The problem with neophyte business owners is that they usually think that all investors are interested in what they have to say. This is not true. In fact, the possibility of getting an investor on board is highly dependent on their interests.

So as not to waste time pitching to someone who is not interested, a business owner must create a strategic list of people who are known to be interested in the kind of business that they are planning to start. Entrepreneurs must keep in mind that some investors only put money on specific fields such as medicine or information technology. Knowing the interests of the investors will surely remove some of the time that has to be spent looking for financial support.

Maximize Networks

Securing an investment requires a lot of trust on the part of both the investor and the business owner. This is usually a problem for owners because some investors would refuse their proposals out right because they don’t know them

In order to avoid this frustrating situation, business owners are advised to use their connections to get acquainted with a potential investor. Having someone introduce you to a possible partner is a good way to get his or her approval. This is clearly much better than having to introduce a business without the support of a network.

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

 Copyright2013 Funded.com LLC

Mistakes That Entrepreneurs Must Avoid When Pitching to Investors

Posted by admin in Business Startups, investor on September 17, 2013

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Mistakes that entrepreneurs must avoid when pitching to investors

Very few entrepreneurs are given a chance to pitch their businesses to investors. Unfortunately, not everyone who gets a chance to talk with potential source of financial support receives positive response. The reason: they often commit mistakes when pitching their business startups.

Here are some of the most common mistakes that business owners do when pitching their companies to potential investors.

Long elevator pitches

Elevator pitches are called as such because they are expected to be short – around a minute, which is the average length of a person’s ride in an elevator. And despite being called the “elevator pitch,” there are other instances when business owners are required to be brief when introducing their companies to possible investors. These include chance meetings in cocktail parties, meetings, or even introductions between common friends.

Such cases, which often happen in informal settings, are not boardroom meetings. And while investors may be interested in the pitch, talking about it for more than a minute or two is not appropriate. Doing so may put a bad impression on the part of the investor, therefore losing a possible deal.

Business owners must keep in mind that they should save the talk during an actual pitch.

Long presentations

During the actual presentation of the business, PowerPoint presentations are often considered as God-send tools. It provides the people around the room some visual information that could pique their interest on the topic being presented.

However, business owners must keep in mind that PowerPoint presentations are used as support and are not meant to be the star of the show. Therefore, entrepreneurs must be able to limit the length of the PowerPoint presentation so as not to bore potential investors.

These people want business owners to talk about their business startups and not just read from a prepared presentation.

Made-up proposals

Business owners want to impress potential investors. However, putting wrong information on the investment proposal, for instance blowing up the exit figures to impossible proportions, often raise eyebrows of investors.

Entrepreneurs must remember that investors value business owners who present them with the reality more than those who make-up information just to impress them.

Early discussion on valuation

Investors often turn their backs on business owners who start they pitches with valuation. Before doing so, business owners are expected to introduce first the business and its operations. Investors are there to provide money, but they would rather hear about the business first before getting information on the valuation which is, technically, their expertise. There is no need to walk them through on this process.

These are just some of the things that business owners must avoid when pitching their businesses to their potential investors. Following this would make them one step closer to getting some financial support.

 

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

Copyright2013 Funded.com LLC