Writing An Effective Venture Capital Business Plan
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Written by: paul.steptoe.venturecapital
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Word Count: 794 |
Date: Sat, 6 Feb 2010 |
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Creating a highly effective venture capital business plan can be a demanding task to say the least. Strategic plans for growth capital require strength, dedication and quality considering you will be talking to the investors that offer the key to the future of your business in their hands.
The fact is, no more than 2 to 5 per cent of organisations in search of venture capital actually succeed with their end goal.Some fall short on the initial try and quit, others develop from the experience, correct the errors they made with their first venture capital investment proposal and strategies and go back to the VC's for a second, third and forth time before they get the business growth capital they require.
The tiny portion (2-5% should 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 venture capital know how to position their companies 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 investment capital strategic plan.
It is evident that this is no small achievement given the small number of people that are successful in finding development capital from investors, so what did they do?
Here is a closer look at just a few things that can be done:
1. Position The Organisation - This means being in a successful industry with the potential for growth, ideally one that the prospective venture capitalists 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. VC's Want A Sense of "WOW" - The initial response to your VC business strategy plan needs to create a WOW factor. A powerful strategic plan is one thing, but a investment proposal that makes people sit up and take notice is another. Having a WOW factor in your 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 venture capitalists reading your strategic plan can envision it coming to place with the correct injection of business growth capital for your organisation. The presentation may not be everything, but without it, there is nothing.
Investor business plans for growth capital will have the most unique approach of all. Investment capital business 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 business strategy plans and know which ones are genuine and which ones are from the wanna-bees.
A growth capital 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 form of investment business plan, yours must have a solid foundation of marketing stats. Research, research, and more research.
Make sure you create probably the most outstanding business strategy plan possible. Sometimes there's no second chance at some vc's, so make that first impression count.
Create an excellent website. Whether your company's business is based on the net or not, a solid presence here is required 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 companies, they invest in people. Without doubt, an exceptionally strong executive team with a so-so product will get a better response than a weak business owner 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. This means you should "make that investor business plan so outstanding that they can't refuse it, regardless of what the product is."
Companies that are seeking growth captal in their organisation can access a wide variety of venture capital resources at http://VentureCapitalSource.com.au including information on Venture Capital Australia
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Dennis Jones
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