| Unique differentiation has become the most vital part | | | | model." He believes that investors will focus primarily |
| of any business plan. Now more than ever, | | | | on expertise and track record in making any funding |
| entrepreneurs need to be able to answer three key | | | | decisions. |
| questions: | | | | If Roberts' predictions hold true, we should expect an |
| 1. Who are you? | | | | intense competition for investment dollars which will |
| 2. What do you do? | | | | lead to even more complex fundraising efforts. "I'm |
| 3. Why should I care? | | | | not certain many businesses can afford just one |
| The ability to effectively communicate that message | | | | round of fundraising," says Rich Alton, CEO of |
| and grow the infrastructure to support it comes with | | | | Brightridge Capital which will see a nearly 40% return |
| a high price tag. Even with the adaptation of social | | | | this year. "Profitability may take several fundraising |
| media, firms are spending a large part of their | | | | campaigns and will come from various investors. " |
| marketing budget to sustain it. Therefore, a key | | | | Alton says that investors should set milestones |
| component to any fledgling business is knowing | | | | between rounds of funding. "If we're buying equity |
| where to look for opportunities and getting an | | | | we must know why we're buying. Otherwise, if we |
| audience with the right people. This is especially true | | | | don't know why we've bought we don't know why |
| when trying to raise money to grow and start your | | | | we'd sell. " |
| business. | | | | Markets that typically attract venture capital may |
| As the economy begins to recover and stabilize new | | | | present too much risk and exposure for traditional |
| investment capital will become available; however, | | | | bank loans. Even if the risk is mitigated, the dollar |
| according to international bestselling author Wess | | | | volume often exceeds the scale of small business |
| Roberts, demand will far outweigh supply. Dr. | | | | loans. In turn, this has given rise to a new wave of |
| Roberts, author of Leadership Secrets of Attila the | | | | small business investors. Many venture capital |
| Hun, says that less than 10% of opportunities | | | | investments are high risk but offer |
| presented can expect to be funded. "Entrepreneurs | | | | higher-than-average returns. "We're seeing more |
| should leverage their sphere of influence to get a | | | | software, telecom, web and hardware requests this |
| personal introduction to venture capitalists and other | | | | year," says Nick Mulvaney, managing partner with |
| investors. They must be ready to present their | | | | qFund. "Technology businesses must grow fast and |
| opportunity in a professional manner with quality | | | | large if they want to be successful. |
| answers to any questions about their business | | | | |