Four ways to secure the nod of angel investors
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
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
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
How to Prepare Business Startups for Disasters?
Disaster preparedness should always be on the priority list of business start-up owners. Unfortunately, not all entrepreneurs out there seem to understand that everything can disappear in a matter of seconds during the onslaught of a powerful hurricane or tornado or floods.
The latest Small Business Disaster Survey showed that 74 percent of small businesses in the United States do not have recovery plans in case disasters damage a portion of the company. What’s more surprising is that 84 percent of small businesses do not have natural disaster insurances, and that 71 percent of these companies do not even have generators.
The possible cause of this phenomenon is the fact that around 76 percent of small business owners in the United States have never been affected by a major natural disaster. And while it is reassuring that not everyone is going to be devastated by a hurricane or tornado in the next few years, the reality is that the number of major weather events that hit the country is continuously going up.
Data from the National Oceanic and Atmosphere Administration showed major weather events (those inflicting damage of at least $1 billion) has increased from around two per in the 1980s to around 10 per year in 2010. More alarming is the data showing that 65 percent of businesses operating in the US are located in areas that have a high risk of getting ravaged by a natural disaster.
With this, it is only fitting for small and large business owners to invest in good disaster recovery plans to mitigate the possible harsh effects of natural weather disturbances to the companies. Some believe that “disaster recovery plans” are unnecessary expenses for businesses that need to limit its financial burden in order for it to survive. This is not a true claim.
Creating a plan does not need a lot of money. In fact, business owners can develop their own using information that they can get from the Internet or other sources. Planning does not have to be very extensive, but rather a concrete precaution in case of disasters.
Such plans should include the creation of back-up files in strategic locations in case a disaster destroys the original ones in the main office. Having a back-up power source is also a good idea, especially for businesses that rely on technology and machinery.
An alternative “home base” must also be established or conceived in case the main office becomes unavailable due to disasters. The plan should also talk about basic evacuation plan for employees in case an abrupt disaster strikes while everyone is in the middle of production.
No one wants to experience a disaster destroying his or her business. However, having a plan to address this issue is always better than having nothing at all.
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
Splitting Equity Equally among Founders, Is it the right decision?
Splitting private equity among the founders of small businesses may seem an easy task. After all, it is widely accepted that founders – and even just the pioneers behind a successful business – deserve equal shares in the company’s equity. Or are they? Some experts believe that equally splitting the equity among the founders is not really the best decision that entrepreneurs can have.
Splitting the equity equally seems fair for those involve. Actually, it is. But fairness should not be the only thing that matters when it comes to equity and revenue discussions. There are possible scenarios that founders must think about when discussing about the sharing of equities. Among these scenarios, one expert notes, is the possibility that someone from the group of pioneers would back out and leave the group. Why give him people equal shares of the equity if they will just leave the business after a few months?
The role of the people involved in the business is also crucial. Consider this scenario: Marco has a business idea and he decides to share this to Paul. Later on, the two of them decide to establish a business based on Marco’s idea.
During the establishment phase, Marco and Paul realize that they need money to finance the operations of the business. To solve this, they decide to contact their friend Anna to ask for some capital. Anna agrees to provide money for the business on the condition that she will be considered a “founder” of the business.
The question is, would it be fair to split the equity equally between Marco, Paul and Anna? Paul would definitely agree to the proposal, but it may seem unfair for Marco and Anna.
Marco was the one who had the idea, and it was Anna who provided the capital for the business All Paul did was to agree with the idea and probably help in convincing Anna to fund the business.
Unless Paul did something relevant for the company (such as managing the manpower or using his networks to help in the actual formation of the business), it may seem inappropriate to give him an equal share of the equity.
Founders of small business often have personal relationships prior to the creation of the business. However, entrepreneurship is a professional field, and people should understand that partnership should always be prioritized over personal ties.
Instead of looking into the years of friendship or familial ties, co-founders of the business should look into the professional aspects of the company when they are deciding on equity split.
Some of the factors that should be considered include the business idea, the intellectual property, the capital, time, opportunity cost, and expertise of the person on the industry where the business is a part of.
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
The risks of family-funded startups
Funding remains one of the most pressing problems faced by business startup owners. More often than not, entrepreneurs find themselves thinking where they would get that money that would help them establish their respective businesses. And while there are a lot of funds available out there for business startups, the reality is that not all entrepreneurs get the financial support coming from angel investors or venture capitalists.
In the end, a lot of business owners who need financial backing rely on the easiest source of funds that they can think of – their family and friends. Initially, this idea is seen as a very good solution to the money problem. After all, relatives and friends are often seen as best people who can support someone who has started his or her own business. But is it really wise to ask your relatives or friends to invest in your business? For most experts, the answer is no.
Entrepreneurs are often advised that they should never mix their personal lives with their professional ones. Doing so would often result in problems concerning the overall performance of the business. A lot of professional entrepreneurs believe that asking for investments from family and friends are not good for the business due to the risks that could lead to serious relationship problems.
Business startups are not always successful. In fact, some studies note that only 25 percent of startups actually expand and become successful. For the remaining 75 percent, it means failure – and loss of lots of money. Such events, while usual for seasoned investors, are not often experienced by your relatives and friends. Unless they are fully aware of the risks, relatives and friends should not be asked for financial investments in business startups.
Moreover, rifts between those involve in the business can arise once the startup begins expansion. With the entry of secondary and more professional investors, the issue of profit often becomes a sore point.
History shows that a lot of businesses failed because of the problems arising between family members. Thus, business startup owners are advised not to get their family and friends involved in their businesses if they have other alternative to get financial resources.
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
Secrets of Successful Business Startup Owners
Successful business startup owners often say that their achievements have to be attributed to their luck. They keep on saying that they were fortunate that they have started their particular business startups on the right place at the right time. To some degree, this might be true. However, it is unlikely that the success of these people can simply be attributed to luck. It’s not.
The truth is that these business startup owners were successful because they have made the right decisions at one point or the other. They have followed a strict set of rules that made them successful. Luckily, these rules are secrets no more. Here are some of the things that ensure the success of fledgling entrepreneurs these days:
They know how to take care of themselves
The most successful business startup owners know that their most important capital is their own minds and bodies. Therefore, those who wish to make it big in their respective industries must know how to take care of themselves to ensure their physical and mental prowess.
Eating healthy and having regular schedule for physical exercise are simple things that ensure the success of business startup owners.
They have activities outside their businesses
Focusing on the business is necessary to ensure its success. Too much attention, however, is not. Successful business startup owners often have other interests outside their businesses in order for them to have a much-needed break from the stress of handling a company.
Having a balanced life often keeps the business owner focused and relaxed that is an important secret to the success of the business.
They know how to lead
Financial capital and passion for the enterprise are not just the things needed for the success of the business. More than these, business startup owners must be able to lead the entire team to attain their goals. No business will thrive without the support of an effective leader who will anything for the good of the company.
They know when and how to make the right decisions
Once in a while, business startup owners would find themselves facing problems that they have to resolve immediately. A common characteristic of successful entrepreneurs is that they all know when to make a decision in order to solve a problem.
The success of the business is often not reliant on the “rightness” of the decision, but in the willingness of the owners to stand by their choices and accept the possibility that they have to amend their earlier decisions for the good of the company.
These are just some of the things that ensure the success of business startup owners. Following these is a big leap toward the victory that entrepreneurs want to attain.
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
Ten Important Elements of an Effective Business Plan
Business plans are important for every business startup. Entrepreneurs often spend time creating these documents, which often spell the difference between the success and failure of a venture. Business plans often serve as the framework of the startup and sets the realistic short-term and long-term goals of the company.
There are various ways to create a business plan. Most of the time, their format vary depending on the group of people who will utilize them. A business plan meant for the employees is usually different from a business plan for potential investors.
For instance, a business plan for investors or mentors would contain more detail as compared to the business plan for the personal use of the owner and his or her business partners. After all, it is expected for the latter to be more knowledgeable of the particulars of the company, therefore eliminating the need for a more detailed plan.
Despite the differences, it must be emphasized that all business plans have a lot of elements in common. Failure to include any of these ten important business plan component would mean disaster for they contribute to the overall effectiveness of the document:
- A mission and vision statement that highlights the goals and objectives of the company and its owner;
- A detailed description of the business startup and an introduction of the products or services that it offer;
- A detailed description of the products or services and a discussion on how the differ from the rest that are currently offered in the market;
- An analysis of the market in which the company would enter, including a detailed description of the possible competitors;
- A description of the key officials of the company, as well as the rest of the management team;
- A detailed discussion of the game plan on how to market the product or service and encourage potential customers;
- An analysis of the company’s strengths and weaknesses, including viable opportunities and challenges that could improve or affect its performance;
- A segment on the financial statement which will show the owner’s understanding of the cash flow of the business and its importance to the growth of the company;
- A description of the projected revenues of the business; and
- A summary to conclude the business plan
Including these things would ensure that the business plan would be effective in fulfilling its roles as the framework of the business. The owner may decide to include other information, depending on the people who will utilize the document.
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 2013 Funded.com LLC
Available Corporate Venture Funds for Business Startups
In recent years, the number of available venture capital funds for business startups that are coming from traditional sources has started to go down. Fortunately, there is a viable alternative – corporate venture funds.
It can be noted that a several multinational corporations have started to allot some of their funds for business startups. Latest data show that roughly around 900 corporate venture funds are currently available for new businesses. Last year, around 16 percent of companies have acquired corporate venture capital, a number that is expected to increase this year.
Corporate venture funds have been available for more than two decades now. But recently, corporations have started to embrace this trend even if it would disrupt the status quo. The reason, they can’t afford not to anything about it.
Several companies have recently declared bankruptcy or have started to vanish because it failed to recognize the changing landscape of the market. For instance, rental company Blockbuster would still be a major player if it recognized startups such as Netflix. This is similar to the case of Kodak. If only it recognized newbies Shutterfly and Instagram, it might have averted declaring bankruptcy.
Fortunately for some companies, they still have time to catch up with the situation. Nielsen, for instance, has already allotted money to fund small investments. Dell is doing the same, maintaining that it will continue investing in startups even with plans for it to be taken private.
Corporate venture capital allows public company to focus on the long term. For instance, American Express Ventures will participate in merger of e-commerce and payments industries. It is also looking for new technologies that could be utilized for the next decade.
If you are an owner of a business startup who is in need of capital, then it is a good idea to look for venture funds from corporations. Securing one would be a good thing, especially since big companies could assure a successful future for your business startup.
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 Funded.com LLC 2013
Guidelines For Successful Postings
Rules and Guidelines For Successful Postings
Posting your Funding request is essential part of raising capital as creating your Business Plan. In order for you to get the funding you should be able to catch the eyes of the investors. Here are some tips you can follow to attract Investors and funding providers.
Title. Make your title attractive this is the first section our investors will see. Include the title of your business or invention. Make it enticing and give them something they want to hear and continue reading to your letter.
Posting. Write a short summary of your Business idea or Invention that will catch investor’s attention. Make it 2 to 3 paragraph short and make it concise and simple. Avoid too much information and do not copy and paste your Executive Summary. Your posting is not to be confused with a chat or blog. You are selling you and your business to investors and funding providers to raise capital and any posting that is not about your business is not allowed. Remember, concise and to-the-point.
Attach your Business Plan or Executive Summary. If you are looking for an Angel Investor or Venture Capital make sure you attach your Business Plan don’t wait for the investors to ask your Business Plan. Remember your Business Plan is the eye view of your business/invention. If you don’t have a Business Plan yet at least upload an executive summary. (You can use the Free Executive Summary template available upon creating your membership). This will give the investor the immediate reaction that you are serious in getting funds.
Private or Public posting. We have two ways of posting your request either public or private post. If you publically post be aware that everyone who not a member of funded.com will see your postings. While private posting only our registered investors and funding providers can see your funding request.
Avoid Personal Information. Even though we pre-screen funding providers, it is an ever increasingly large group and it is ultimately up to you to protect yourself from anyone saying who they are not and promptly reporting any concerns to us. Therefore we suggest not putting your email or telephone number on a public post. Private postings may not have the traffic like a public posting but is limited to our investor network that is viewing your funding request. Keep in mind that if there are investors that are interested in knowing your business venture they can always email you via funded.com and you will receive an email notification on your personal email if they replied on your posting.
Be patient for responses give some time to our investors to see your request. If you are not getting any responses try to re-write or revised your posting. You may also call us and we can look at your posting and give you tips for success. Try to be more creative and remember you want to create interest in your business or idea and sometime it takes time for investors and funding providers to notice you, especially the right one that will fund you.
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