After reading the first part on funding your business we got several requests by small business to get more information on how to obtain funds for start-ups.We gathered some more data on what VCs actually look into the business idea before funding. I am sure that will help you.
Keep business plan & presentation simple
What we mean here is that one should not prepare a lengthy business plan.VCs do not have that much time to go through in detail. We suggest a single page business plan along with a 15 slide PowerPoint presentation during the initial meeting.
A clear monetization model
The business idea that you are pitching to VCs should have a clear graph showing the revenue flows, risks involved, and the profits that come out in the long run. All these numbers should be realistic.
Business idea should have customers
Probably the best way to convince the VCs is by having some customers by the time you have pitched your proposal. In this way the VCs know that the product or service has been tested & they can also speak to some of the customers for any further information.
Exit options for a VC
High risks are involved when a VC plans to invest funds on a business idea. Your proposal should showcase all exit options available for the VC at any time. They will get an idea to know the scalability of the business.
Business performance should be continuous
One should not give a pause to the business performance during the time they are talking with VCs for availing funds. Keep working what you are doing. Funds may take days or months. Do not get into the risk of losing the market which may leave a negative review for the VCs who might be closely observing the business.
Availability of funds has become easy but not all companies are getting funds. Out of 100 proposals, maybe 5 get into the attention of the VCs.Investors need to be believed that your business idea leads to some transformation or providing a solution to any existing problem. Having a strong business model always helps you.
Shriyans Management Consultants P Ltd has been preparing business plans, corporate presentations and marketing consulting services to small business.They can be reached for further consultation by mailing shriyansmc@gmail.com
Keep business plan & presentation simple
What we mean here is that one should not prepare a lengthy business plan.VCs do not have that much time to go through in detail. We suggest a single page business plan along with a 15 slide PowerPoint presentation during the initial meeting.
A clear monetization model
The business idea that you are pitching to VCs should have a clear graph showing the revenue flows, risks involved, and the profits that come out in the long run. All these numbers should be realistic.
Business idea should have customers
Probably the best way to convince the VCs is by having some customers by the time you have pitched your proposal. In this way the VCs know that the product or service has been tested & they can also speak to some of the customers for any further information.
Exit options for a VC
High risks are involved when a VC plans to invest funds on a business idea. Your proposal should showcase all exit options available for the VC at any time. They will get an idea to know the scalability of the business.
Business performance should be continuous
One should not give a pause to the business performance during the time they are talking with VCs for availing funds. Keep working what you are doing. Funds may take days or months. Do not get into the risk of losing the market which may leave a negative review for the VCs who might be closely observing the business.
Availability of funds has become easy but not all companies are getting funds. Out of 100 proposals, maybe 5 get into the attention of the VCs.Investors need to be believed that your business idea leads to some transformation or providing a solution to any existing problem. Having a strong business model always helps you.
Shriyans Management Consultants P Ltd has been preparing business plans, corporate presentations and marketing consulting services to small business.They can be reached for further consultation by mailing shriyansmc@gmail.com
