by: kala.rinde.venturecapital
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Date: Sun, 7 Feb 2010 Time: 4:36 AM -
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Creating a powerful growth capital business strategy plan can be a challenging task to say the least. Investor business plans for investment capital require strength, determination and quality since you will be talking to the investors that hold the key to the future of your business in their hands.
Article Source: DirectoryArticles.com
Sadly, not more than 2 to 5 pct of organisations in the market for growth capital actually succeed with their end goal.Some fail on the initial try and give up, others develop from the experience, correct the errors they made with their first investment capital investment proposal and strategies and return to the VC's for a second, third and forth time before they get the business growth capital they want.
The small percent (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 enterprises in front of the vc's, 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 a powerful venture capital strategic plan.
It is obvious that this is no small achievement given the small number of people that are successful in finding working capital from investors, so what did they do?
Listed here is a closer look at a few things you can do:
1. Position The Enterprise - This means being in a successful industry with the potential for growth, ideally one which 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 venture capitalists.
2. Venture capitalists Want A Sense of "WOW" - The initial response to your VC investment proposal needs to create a WOW factor. A powerful business strategy plan is one thing, but a business plan that makes people sit up and take notice is another. Having a WOW factor in your strategic 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 strategic plan can envision it coming to place with the correct injection of development capital for your business. The presentation may not be everything, but without it, there is nothing.
Strategic business plans for venture capital will have the most unique approach of all. Investment capital strategic plans cannot be "canned". Entrepreneurs who use 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 business plans and know which ones are genuine and which ones are from the wanna-bees.
A venture capital investment 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 company.
More than almost every kind of investment business plan, yours must have a solid foundation of marketing stats. Research, research, and more research.
You have to create the most outstanding business plan possible. Sometimes there is no second chance at some venture capitalists, so make that first impression count.
Create an excellent website. Whether your company's business is based on the internet or not, a solid presence here is necessary to convey your professionalism and seriousness to the potential investors.
It is an error to believe the catchphrase that venture capitalists don't invest in corporations, 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 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 potential investors are watching. This means you should "make that investment proposal so outstanding that they can't refuse it, no matter what the product is."
Organisations that are seeking investment growth capital in their organisation can access a wide variety of venture capital resources at http://VentureCapitalAustralia.com.au including information about Biotech Venture Capital
Dennis Jones
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