| ign="center"> | | | | gaining interest quicker than ever before. Right now |
| Although the concept of venture capital has been | | | | is perhaps the best time of all to show optimism and |
| around for well over two hundred years, it is only | | | | determination to succeed. The number of investors |
| really in the last twenty or thirty years that | | | | hasn't decreased, but the number of businesses has, |
| companies have specifically sought to boost | | | | and the growth of those already trading has not |
| entrepreneurialism and profit through the | | | | grown as quickly as forecasts would have suggested. |
| development and growth of successful businesses. | | | | With a good business plan, even if it is only a |
| Many of the venture capital companies trading today | | | | reasonably modest one, most entrepreneurs or small |
| were initiated in the eighties or nineties. | | | | business owners should find themselves achieving |
| Although this idea has proven to be popular and | | | | more attention than they would have done only a |
| successful for both investors and for those struggling | | | | couple of years ago before the markets crashed. |
| to take their business to the next level, there is | | | | However, it is important not to confuse attention |
| widespread concern amongst new entrepreneurs or | | | | with investment. It might be easier than before to |
| would be business owners that the current | | | | gain attention, but if you have not carried out your |
| economical climate and general concern with the | | | | research, and have only a sketchy business model, |
| future economic outlook is liable to put off many | | | | then you can expect to see the potential investors |
| would be investors. The concern is that venture | | | | walking away very quickly. It is more important than |
| capital investors are likely to be less interested in | | | | ever to do your homework, and be fully prepared. |
| business, especially those with a higher degree of risk | | | | But this shouldn't be seen as bad news at all. It's |
| attached. | | | | always been important to be prepared, and the |
| It is argued by many that for this reason it is not | | | | current climate only highlights this need. By highlighting |
| advisable to look to develop or found a new business | | | | the importance of preparation, research, marketing |
| because obtaining financial backing is likely to be | | | | and understanding, this means that today any |
| almost impossible, stalling the company and | | | | business which succeeds in not only gaining venture |
| preventing you from taking advantage of the | | | | capital interest, but also succeeds in gaining |
| markets you perceive to be available. | | | | investment, has a rock solid base and is more likely |
| These concerns and worries are certainly very | | | | to succeed and grow to at least expectations than |
| understandable, but in fact they are quite unfounded. | | | | might otherwise have occurred during times when |
| Despite, or even perhaps because of the economical | | | | investors may have been happy to take slightly |
| turmoil which the entire world is facing at the | | | | larger risks. |
| moment, there are not only emerging markets and | | | | Another aspect of venture capital which can often |
| opportunities developing which are there for the | | | | be forgotten is that it is not all about money - it is |
| taking, but investors are seeking opportunities to ride | | | | very much about getting people with experience and |
| the storm out on the back of growth which they | | | | business knowledge to become involved in the |
| perceive as being viable businesses. | | | | business process. This can only be seen as a good |
| The point is that in order to secure an investment, | | | | thing, and having the right investor on board can do |
| either from a venture capital firm, private investor or | | | | wonders for the growth and success of any |
| business angel, or even a venture capital trust, your | | | | business. Focussing entirely on getting the investment |
| business has to present itself in a clear, unambiguous | | | | can be missing the point. |
| way as highly likely to succeed. This has clearly | | | | With an investment from a company or private |
| always been the case, but today it is of critical | | | | investor, who will then be represented on the board, |
| importance to make sure that you do not rush in | | | | it can mean the difference between surviving, and |
| with the first new business idea you have, but that | | | | succeeding. Don't opt for the first investor to wave a |
| you take time to work out the business plan, you | | | | bundle of notes at your business plan. The |
| take time and effort to research the market, and | | | | investments are there for the taking, so don't |
| you make the effort to put together a plan that can | | | | assume that in today's climate you should jump in to |
| clearly demonstrate the potential for growth and | | | | the first investment option to present itself to you. |
| success. | | | | Venture capital is a two-way street, and if you |
| If you can do this within the current financial | | | | forget that fact, you could get run over before |
| situation, then you will almost certainly find yourself | | | | you've even started. |