Business Plans for Venture Capital Investors


 

Hope is the thing with feathers, That perches in the soul, And sings the tune -- without the words, And never stops -- at all.
 
Emily Dickinson, Poet


 

 


Business Plans for Venture Capital Investors

Business plans for venture capital are an entity unto themselves, with strength, determination and quality an absolute given.

The term VENTURE CAPITAL seems swallowed up in mystique, as is a business plan for venture capital investment.  These aren't just investors.  These are the investors that hold the key to the future for many companies.

Sadly, no more than 2% to 5% of the companies looking for venture capital actually get it.

But that small percentage -- that 2% to 5% -- knows something that the others don't. The successfully funded companies know how to position their companies, and how to present them, how to capture the venture capitalist's attention.

Obviously, this is no small accomplishment, so let's take a closer look at it.

First: positioning companies. This means placing the company in a successful industry, especially one that the venture capitalist knows well. For instance, being a chip manufacturer is probably a pretty good business; but being a chip manufacturer in the defense industry in an emerging technology niche is a whopping good business. Being a successful retailer is a strong recommendation; having a chain of ten successful stores is a very strong recommendation.

It's that "whopping good" business, that "very strong recommendation" that venture capitalists look for.

Your 7-Step Business Plan may be just the catalyst you need to create a spectacular business plan, one that truly reflects your business.  Lots of options, lots of successes.  Click on the book covers for more information.

Venture capitalists need a sense of "Wow".

And it is the business plan that must present that "Wow" to them. Without a strong business plan, there will be no further discussions. Period.

And that is the second thing that successfully funded companies know: presentation may not be everything, but without it, there is nothing.

Business plans for venture capital will have the most unique approach of all. The SBA and banks don't demand the top quality presentations that venture capitalists demand.

This business plan cannot be "canned". Entrepreneurs who use business plan templates at this level of funding won't get this level of funding.

The presentation must be sophisticated, complete, accurate and -- yes -- dynamic. It must represent the company just like an ad in Business Week or The Wall Street Journal would represent the company.

I strongly recommend 3 steps for companies looking for venture capital:

1. More than any other type of business plan, yours must have a solid foundation of marketing stats. Research, research, research.

2. Create the most outstanding business plan possible. There is no second "up", so make that first impression count.

3. Create an outstanding website. Whether your company's business is based on the internet or not, a strong presence here is essential.

It's an axiom that venture capitalists don't invest in companies, they invest in people. Without doubt, an exceptionally strong management team with a so-so product will get a better response than a weak entrepreneur with a good product. The theory is that it's easier to improve a product than it is to improve the people behind it. So strut your stuff -- the VCs are watching. (That means "make that business plan so outstanding that they can't refuse, no matter what the product is.")

 

Back to top of Business Plans for Venture Capital

          

 

Tell a colleague about this site.

You CAN Get The Funding Your Business Needs --
And
Get It NOW!!


Your 7-Step Business Plan, with ...


Dozens and dozens of businesses
Templates in MS Word and Excel, two programs you already know
Templates and examples for all sections, INCLUDING FINANCIALS!
Over 100 pages in all, with loads of step by step directions
...  And Lots, Lots More.

Click on Book Cover TO FIND OUT MORE!


Advertise on this Site     Contact Webmaster      Submit Article

(c) 1998-2008 BusinessFinance-One Inc.  All rights reserved.

Page copy protected against web site content infringement by Copyscape