Your million dollar business idea is not getting off the ground, though you have tried from company to company, till your money and network resources went in vain. At the end, nothing is left in your hand. This happens if you don’t get a little financial help.Venture capital firms are comprised of private investors that research, negotiate and fund businesses in their earlier stages of development. Today’s some of the top leaders in business such asHome Depot, Starbucks, and Google relied onventure capital in their early stages.
Studying the Competition:
To apply for venture capital, you have to present your idea with paper filing, business plan writing and demographic analysis. Usually these firms receive almost 5,000 businesses plans every year, so your business plan, will be having strong competition with others’ business plans for funding consideration. From all those plans only 10% plans are considered seriously, out of those only 1-2% are actually picked up and funded. Sometimes this process takes years.
When there are already so many files submitted, even the smallest part of documentation like punctuation, accurate book keeping and sentence structure counts a lot to get attention of the receiver.
Criteria for Eligibility:
Individual firms are having their own criteria for funding, while venture capitalists are private investors and boards which are free to alter conditions in order to suit their own phenomena. Venture capital funding are same as you apply for any educational grant, for which you have to meet certain benchmarks, reach the level to attain thefunding.
The volume of business plans which venture capitalists weed every year often have low points rather high points that stand out. Punctuation, grammar, appealing graphics and to the point writing won’t bring your plan at top of the pile, but at least it won’t wind up in the recycle bin right off the bat.
Before sending the resume to the prospective employer update and revise it, and see properly you have included all the updates. Usually business plans are 25-50 pages long, and it’s easy to put a typed slip in it. It’s better to hire a professional editor for making a proper document.
When you write a business plan, don’t think about the page count determined length. Any good story with irrelevant words never meant to be over. Make it sure that you had put all the business related information on it and also answers of the questions that may arise. Make the business plan thorough and clean so that you can gain the firm’s trust in your abilities.
Before making business plan cover all the areas of research, make sure that they fully understand and get the answers to the questions that may arise. But there is possibility that venture capitalists grasp the concept without thinking or speculating.
If similar business plan already exists then focus on those points which can make your plan different.
Ideas or plans about technology do need explanation, so it’s important you represent it in such way that the plan carries its uniqueness.
Keep in mind venture capitalist firms mostly focus on one type of business or product such as wireless technology, health care, alternative energy, etc. so be sure if you are having unique idea to send it to a right firm.
If you are planning solo its good, but being with a team behind an idea is best. When you are with a group, then it can be more creative as possible. Never think as profit sharing, think as a group of co-workers acting as a bouncing wall for ideas.
Luck
Keep in mind that face to face meetings between young inventors and venture capitalist boards are impossible on day one. If the idea is good and you are having right time then it takes a moment to get attention of the right person. If not then wash, rinse and repeat. In simple words it means that all depends on luck also, if you are having good luck then you will get it.
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