How To Create A Great Venture Capital Business Plan
Print View | Html View
Written by: jovita.chokshi.venturecapital
Total views: 26 |
Word Count: 777 |
Date: Sat, 13 Feb 2010 |
0 comments
Coming up with a great investment capital strategic business plan can be a demanding task to say the least. Strategic plans for investment capital require robustness, dedication and high quality given that you shall be talking to the investors that hold the key to the future of your business in their hands.
Often times though, not more than 2 to 5 pct of corporations trying to find growth capital actually succeed with their plan.Some fail on the very first try and quit, others learn from the experience, correct the mistakes they made with their first venture capital business plan and strategies and go back to the venture capitalists for a second, third and forth time before they get the business growth capital they require.
The small percentage (2-5% if you recall) that succeed in getting a venture capital investment for their business probably know something that the others don't! Those that are successful in getting investment capital know how to position their corporations in front of the venture capitalists, they know how to present them to capture the attention of their prospective investors and in many cases this is done in the first instance by the presentation of aneffective venture capital strategic business plan.
It is clear that this is no small achievement given the small number of people that are successful in finding growth capital from investors, so what did they do?
Here is a closer look at some things that you can do:
1. Position Your Business - This means being in a successful industry with the potential for growth, ideally one that the prospective vc's know well. Having a chain of ten successful stores is a very strong recommendation and would help your prospects as would the vision of ten successful stores presented in the right business plan to the correct group of vc's.
2. Venture capitalists Want A Sense of "WOW" - The initial response to your VC business strategy plan needs to create a WOW factor. A successful investment business plan is one thing, but a strategic business plan that makes people sit up and take notice is another. Having a WOW factor in your strategic business plan doesn't have to mean you set unrealistic goals, it just means that the vision you have, and your mechanism for implementing it are in line and that the vc's reading your investment proposal can envision it coming to place with the correct injection of development capital for your company. The presentation may not be everything, but without it, there is nothing.
Investor business plans for venture capital will have the most unique approach of all. Venture capital business strategy plans cannot be "canned". Entrepreneurs who use strategic business plan templates at this level of funding just won't get this level of funding, its as simple as that. The people who are reviewing these proposals have seen hundreds if not thousands of strategic plans and know which ones are genuine and which ones are from the wanna-bees.
A growth capital strategic business plan presentation must be sophisticated, complete, accurate and, yes, it must also be dynamic. It must represent the organisation just like an ad in The Financial Review or The Australian would represent the organisation.
More than any simple type of strategic plan, yours must have a solid foundation of marketing stats. Research, research, and more research.
You need to create the best outstanding investment proposal possible. Sometimes there is no second chance at some vc's, so make that first impression count.
Create an outstanding website. Whether your company's business is based on the net or not, a solid presence here is important to convey your professionalism and seriousness to the potential investors.
It is a mistake to believe the catchphrase that venture capitalists don't invest in companies, they invest in people. Without doubt, an exceptionally strong executive team that has a so-so product will get a better response than a weak entrepreneur with a great 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 potential investors are watching. This means you should "make that strategic business plan so outstanding that they can't refuse it, no matter what the product is."
About the Author
Dennis Jones recommends companies, organisations, entrepreneurs that are seeking capital for growth in their organisation to access a wide variety of venture capital resources at http://RaisingCapitalAustralia.com.au which also include information from the Investment Capital Handbook
Related Products
Rating: Not yet rated