September 22, 2010
Steps to Securing Business Start-up Capital
Probably one of the most daunting initiatives in the process of starting a business is finding the necessary capital. You may have an excellent innovative idea and an unflagging commitment to launching the enterprise, what you also need to prove to potential investors is that your future business is capable of generating revenues in a timely manner. Some of the missteps that could make entrepreneurs stumble in their search for funds, especially in the case of business novices, can be avoided if the following key aspects are considered.
Write a Detailed Business Plan
Your business plan is the map that is going to guide you through the complex business process. Therefore, it needs to be carefully detailed and constantly updated, in order to lead you on your way to success, which means, first of all, reaching a cash flow-positive status. When the business plan is ready, you also need to prepare an executive summary, with a cogent business description that demonstrates your execution skills and the company’s chances of securing high return on investment.
Contact Only Suitable Investors
When you decide to send a teaser email to potential angel investors or venture capital firms you should first make a sensible selection of those that are most likely to fund your business. Consider their location, stage and sector preference, the minimum and maximum amount they invest, a proven track record of success with other companies in their portfolio. These investors will have an in-depth understanding of your business and will be able to provide you with management assistance, expertise and useful contacts.
Prepare for the Pitch
A face-to-face meeting with business investors requires a lot of time for preparation and speech rehearsals. Attention should be paid to both content and form. Be clear and concise, make sure the listeners understand what your business is about in the very first minutes and avoid unnecessary details. Use PowerPoint slides to make the presentation more attractive, but speak only referring to them, instead of reading the content. Maintain eye-contact and adapt your body language and tone of your voice to match the situation and make you sound natural.
Make the first important step now and click here to find a comprehensive list of investors and select the most suitable business partners that will fund your start-up.
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I liked your post. It is very difficult to convince or prove investors are going to have a high ROI if this is your first business. It’s good to have at least an expert in the team – if you don’t have business experience.
Comment by Rajimalli — September 22, 2010 @ 6:10 am
I agree that the business plan is very important and I’ve been working a lot on mine, but I don’t know for sure if it’s good. I’ve read lots of articles about writing plans and I got stuck just because there’s too much detail. Wondering if anybody would have the patience to read it and state their opinion.
Comment by Michael — September 27, 2010 @ 2:51 am
You should not show your business plan to unknown specialists, for obvious reasons, it would be much better to improve it yourself, here is a good presentation about how to finish your business plan in one day:
http://www.venturecapitalreporter.com/business-plan/
We hope you will find it useful.
VCgate team.
Comment by admin — September 27, 2010 @ 3:03 am
Nice article. I was always afraid to start a business because I always found myself in a lack of capital. This makes me change my perspective.
Comment by nitzel — September 27, 2010 @ 6:09 am
Hi.
Your investor database is very good. Trustable.
I find what I needed.
I recommend. Very good choice. Thank you.
Comment by ricardo — September 28, 2010 @ 9:00 am
Thank you as well and good luck.
Comment by admin — September 28, 2010 @ 9:07 am
Argomento interessante che meriterebbe di essere approfondito con ulteriori articoli.
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