How to attract venture capital

Each year, venture capital investors invest billions of dollars in different projects.

Have you ever thought about what makes some investment opportunities successful and others barely start?

Believe it or not, you are not necessarily a business idea, production or service.

Often, the important difference between a company that attracts venture capital and a company that does not attract venture capital is preparation.

If you want to attract venture capital, your business plan should cover 9 areas.

1. Your business plan itself. If there is no business plan, how many business owners are trying to attract venture capital, you will be surprised.
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Ask yourself: If you are a potential investor, if the business owner seeking your venture capital does not have a suitable business plan, what impact will it have on you?

Note: Make sure your business plan has a professional presentation. You can get a complete corporate look on sites like elance.com or buy "off the shelf" products at templatemonster.com.

2. Key Performance Indicators [Key performance indicators for all management and employees. According to Harvard Business School, 40% of business failures are due to improper recruitment decisions. Investors like tio think this area The business foundation has been covered.

Your business will be better when every key department and player has a proper job description.

3. Detailed strategies for lead generation and lead conversion. You may have a great product or service, but what potential investors want to see is how you plan to sell it.

4. Business strategy. The more powerful your business strategy is, the more likely it is to attract venture capital. This is an area where hiring a suitable business coach or consultant can bring great benefits.

5. Research. Venture capital investors are not interested in "we think so" or "we have a basis for guessing...". They want to see market research to support your claims about viable markets.

6. Structure. I recently talked to an accountant who told me that he was facing a nightmare trying to prepare the company for investment, a hybrid of seven different trust funds - each with a different division of core business . His exact remark is that from the perspective of investors, this is a "structural nightmare." It's always worthwhile to make your business build correctly.

7. The offer itself. So you want to attract venture capital... well, but what do investors receive?

What is the shareholding ratio of your company? If it is such a percentage?
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Are you looking for passive investors or who want to be able to offer any special skills?

8. Financial aspects. Investors want to see the latest financial - profit / loss, balance sheet and cash flow statement. Note: This is a company with a financial control system that can gain a stronger advantage than the competition because they are processing the most recent financial and current MYOB files instead of 12 months of data.

9. Internet marketing plan. Being able to show potential investors a detailed online marketing plan can greatly attract the venture capital you are looking for.

Some points that should be covered by your internet marketing plan

1. Traffic strategy. How do you plan to get website traffic.

2. List building. How will you build an online database?

3. Content? If you plan to create an authoritative website [and you should], you need to think carefully about the content. Will your site publish articles? Award? podcast?

These eight issues can help you gain a huge advantage in attracting venture capital when it is solved!

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