| Are you in the process of launching a business and | | | | in good well thought out and planned new companies. |
| having a major problems when it comes to financing. | | | | However all new businesses are not equal - here are |
| The difficulty is that even with a great idea and a | | | | the less popular types of companies: |
| great team of people, venture capital companies are | | | | 1. Internet only companies - especially if you |
| hesitant to put any money into a company that is | | | | obviously have no idea how to market it and are not |
| not already making millions. What can you do? | | | | supporting the business with conventional advertising |
| Venture capitalists understand risk very well. When | | | | and marketing. |
| reviewing your business plan - you do have a | | | | 2. Any business where you ask them to take a share |
| business plan don't you? They are asking three | | | | of the profits and do not offer them a stake in the |
| questions: | | | | business. |
| 1. How risky is this business for me to invest in? | | | | 3. Businesses that have been done hundreds of times |
| 2. What is in this for me - e.g. how much can I earn | | | | before - there are only so many coffee shops that a |
| for investing in this business? | | | | city can support. |
| 3. When can I profitably cash out of this business and | | | | 4. Any business where you are personally not making |
| move onto another? | | | | a financial investment - if you do not want to invest |
| Answer these 3 questions in your business plan by | | | | why should they. |
| showing that you have mitigated and minimized your | | | | 5. Any idea that is poorly thought-out, poorly planned |
| risks by undertaking extensive research. Show what | | | | or simply won't work. |
| the return for the investor is likely to be - and please | | | | Remember venture capitalists are not the only way |
| make it believable. Show them how they can leave | | | | to raise business investment. Your first port of call |
| your company with a smile on their face and a good | | | | for business investment should always be the bank, |
| return for risking their money in believing you. | | | | SBA and relatives. Thinks small and grow in a planned |
| Venture capitalists actually are quite happy to invest | | | | and logical manner. Good luck with your ideas. |