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)
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