Gearing Up Support From A Venture Capital Company
Article by Low Jeremy
One of the most important things in order to start a business is a plan. Why? This is because more than 85% of those who invested fail with the inclination that money is all that is needed.
Having a good business plan is like building a house using bricks instead of sticks. This will have the vision and objective of the company, how much is needed, the sales projections and the return of investment.
This will serve like a guide to be able to foresee certain problems and have contingencies in place to deal with it.
Of course, the entrepreneur will still have to worry about money. But a sound business plan will surely invite a venture capitalist. This individual could either work alone or is a part of a bigger organization.
Maybe the person has no time to do it but sees the entrepreneur thinking in the same direction and will like to see how this turns out. Since most startups are risky with the possibility of failure, this individual will also like to play an active role in the business.
The venture capitalist is usually someone who is familiar with the industry that the entrepreneur wants to engage in. This means that person may know the ins and outs so that mistakes can be avoided and surging the business forward.
Where does the person find the person or the company? The entrepreneur can start by asking some friends or those at work should this by the step towards leaving the regular job and spending more time in this endeavor.
After getting a few references, it is time to write a letter together with the business plan to give the prospective investor what this is all about. A formal meeting will usually take place after that and if everything goes well, then the money will start pouring in.
Venture capitalist companies have helped a lot of starters in the information technology industry. The same thing can happen for the individual regardless of the field one is coming from because there are people out there who have the money and are just waiting for the right opportunity.
Does the individual have what it takes to come up with a business plan and then sell it to someone who has the money? That is going to be the question the entrepreneur has to ask oneself because these the venture capital company will also be reviewing other proposals with the same promise of returns.
About the Author
Low Jeremy maintains http://Venture-Capital.ArticlesForReprint.com. This content is provided by Low Jeremy. It may be used only in its entirety with all links included.
Interested in early-stage company investment? Duke alumni Mitch Mumma ?81 of Intersouth Partners speaks about the basics of venture capital. A former chairman of the Council for Entrepreneurial Development and current technology general partner at Intersouth, Mitch has had full-cycle venture investment experience. He has held management positions with various companies throughout his career, including three start-up companies, all of which subsequently went public. Part of the Duke Entrepreneurship Education Series. Visit www.dukedees.com for more information.
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