Published on October 9, 2009 by davidguide
Whether or not you seek financial help with start-up costs, you will need an effective business plan. If you are starting a home-based business, your business plan will help you track your goals. If you seek funding from a lending institution, your business plan is what lenders use to determine if they will lend you money for your business. Unless you expect a windfall, you’ll need a business plan.
The importance of a business plan comes from its function. But first, you must define your business clearly. It will be your roadmap in measuring your success. A well-written business plan should be no more than 40-50 pages. Don’t dazzle with unimportant tidbits. Stick to the facts of your business and summarize what your goals are. (more…)
Published on January 30, 2009 by davidguide
photo credit: Kevin Krejci
Many entrepreneurs only focus on bleeding-edge, burgeoning markets when developing their technology, product or service offering. This is done for various reasons including:
* The perception that burgeoning markets have limited competition,
* The ability to establish an early foot-hold to increase the value of their company, and
* The reality of the difficulty in developing a differentiated, long-term competitive advantage in large established markets.
This article outlines why this market approach is generally too risky for many venture capitalists and then provides five reasons why venture capitalists prefer large established markets over bleeding-edge, burgeoning markets. (more…)
Published on January 30, 2009 by davidguide
photo credit: sylvain.landry
Venture capital is high-risk but also high return investing in support of businesses just starting, also called: start-up companies. In pursuit of high returns, a venture capital firm raises a fund of very big sums of money – six and seven digits (or even more), to establish the company and later see very nice profits from their investment.
Venture capital is considered a game for the smart investor. The money that goes into a venture capital fund is raised from wealthy individuals or institutions. The Venture Capitalist usually checks out the company that is interested in the investment, and many times has one of its board members join the board of the company that is receiving the investment. Not all characteristics Venture Capitalists look for in an investment actually help a company succeed; some may just reveal value the company already had. The relationship between the investor and the company is sometimes like a marriage, there is courting and hopefully afterwards a long time relationship. Some features investors seek in a company are not directly related to the chance a company will succeed. Instead, as part of this process or the “courting game”, the Venture Capitalist makes sure that the data and information the company is giving the investor is accurate and that he or she are not wasting their time and money.
The world of Venture Capital Investments is developing all the time, and every single day there are new investments all over the world. (more…)
Published on January 30, 2009 by davidguide
photo credit: the_tahoe_guy
Maybe you are giving serious consideration to looking at what is available in the way of venture capital. Quite possibly you have friends who have followed this method of funding their business. So you feel, if they can do this successfully, why can I not do the same?
Once you get started with your search you will soon discover that first and foremost you have to raise the capital, this is especially true with venture capital. A few tips that should help you along with raising venture capital;
First, you will have to get yourself to thinking the same way these investor firms think. Well they are there for one thing and one thing only, to make a profit. Their goal is the same as yours, make a profit.
The main differences between you and these companies, they have spent most of their time over the past two or three years studying which types of business have the best potential of making some money within a couple of years. (more…)
Published on January 29, 2009 by davidguide
photo credit: Photocapy
Are you looking to learn more about how to write a small business plan. We may be able to assist you with a generic outline to create a small business plan.
When writing a small business plan it is important to consider the audience you are writing to. It could be other potential partners, investors or involve multiple parties. The first part of the plan must indicate what business venture you are planning on starting. It also must include a good review of management involved in the business and their roles and responsibilities. (more…)
