Friday, May 4, 2012

Investors



Rhonda Abrams is a renowned author, speaker as well as a columnist for USA Today. Her weekly column is called “ Small Business Strategies.” Each week she gives practical advise to entrepreneurs. The language is simple and uncomplicated enough that those starting a business for the first time can easily understand the teachings and apply them to whatever business situation they are
in. She wrote a book called “Successful Business Plan Secrets and Strategies” (1991, The Planning Shop). This book is utilized as a textbook for many business schools and business programs. She has opened several businesses of her own and runs a consulting firm for entrepreneurs. Her website www.planningshop.com has many resources for new business start-ups. Her advice regarding investors is to not leap before you investigate thoroughly what investors are looking for before you make a possible lifetime commitment to somebody who may eventually be able to take over your business at their discretion. She writes about potential investors such as family, venture capitalists and angel investors. Each category and situation will come with it’s own parameters according to their needs. Family and friends will have personal motivations. Angel investors investing their own monies are more likely to be more patient with new businesses while waiting for a new business to grow and make a profit. Venture capitalists will be the © “Shark Tank” types that will invest larger sums of money for a larger bite of your company and profits. They are also more involved in dictating how to run your business and theoretically “own” you. This premise basically sounds like you will still be working for somebody else.

John Doerr is a venture capitalist. He became a billionaire during the .com boom. In 2009 President Obama appointed him to the Economic Advisory Board. Reports are that he built the internet into what it is today. He is now focused on building green technologies.

There are several important points that venture capitalists look into new business before investing. A well-written business plan is the most important document. They want to know that the business they are investing in is in a market that will grow and show profit. Capital investors will also consider whether or not the company can also sell stock. Is  your idea new and unique enough to draw in loyal customers for years? And one of the most important points that a venture capitalist will want is a good experienced management team that can guide employees and the business to prosper. (http://www.usatoday.com/money/columnist/abrams/index)