Are you missing on the Venture Capital? Tips to keep in mind

By Amit Kumar Mandal, SiliconIndia
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Bangalore: Laying the foundation of business begins with a plan, the plan that is real, concrete and scientific. The plan takes its stride by the inclusion of capitals which may not be available at your disposal. And this is the time when you stumble upon an investor. And drawing an investor in your endeavor requires both IQ(Intelligence Quotient) and EQ(Emotional Quotient), for a fair share of success is attributed to him also. You begin by proper documentation that is inspirational and brilliant enough to get the attention of the investors. This works by making the investors realize that the idea portrayed in the documentation is worth enough for money to be lent or spent. But is it the idea alone that drives the investor? The answer is quite cumbersome, because there is the possibility that the proposed document may be straight away rejected. Perhaps the investor is not a novice one and he may have piles of such proposals drawn from both the budding and grown up entrepreneur. Unless the proposal is a lucrative one the investor is not going to give his nodding head. The approval comes when there are extensive and detailed comprehensive market study, projected sales and profit figures, potential pitfalls and ways in which you plan to overcome them. Apart from these, the break-even point that usually occurs in business fraternity should be deciphered at length, since there is a possibility that your investor may become the shareholders and he would be willing to know the progress of the business. But these acts are rehearsed only when you fetch an investor. To get the confidence of your investor in the project it is wise to follow certain measures. Avoid mailing repeatedly: A mail can give a knock to the door of the investor but mailing repetitively may annoy them. If the mail has to work then one is enough. Plan and summary are equally important: Sometimes the investment seeker put too much plan but lacks the crux of the project whereas some other puts the summary but don’t articulate the plans. In either case the investor looses interest and hence both plan and summary are important. Ambiguity in plan: Sometimes the would be entrepreneur puts the plans of the product specifications rather than the actual plan that will fetch profit to the organization. Therefore you need not mess up with these plans. Use the right English: Avoid slack English otherwise the investor may find you little unprofessional which in other way is not entertaining. Wrong usages may drift to misunderstanding of the investor too. It is advisable to use the right English since investors invest on people before their ideas. Avoid too much acronym: The investor as a reader might be smart enough to understand the acronyms but too much uses can give wrong impressions like the writer being lazy or can bewilder the investor. Make your plan crisp and concise: A 20 page range of plan is enough (base plan). You need not be redundant about your ideas and words in the documentation part. Make the base plan: The investors would not mind documentation with the base plan, but going through the pages should not be abrupt but make sense. Avoid defaming your competitors: Don't say or write anything wrong about your competitors or customers whom you find difficult to defend on their presence. Unless supported by third party on this issue, these acts are supposed to be very unprofessional by t he investors. Avoid early prototypes: Early prototypes may prove to be fatal to the unfamiliar users even though you have put too much effort in the venture. At this stage pictures and words will work better. Acknowledging the investor: A letter of recommendation from the friends of the investors or customers may excel you in this venture. Therefore customer testimonials and vendor contracts are essential to make the deal between the two. Following this approach will truly turn your effort rewarding. These main business plan presentation factors will let you have a place in the investors' good books.