Starting Your Business, Need Venture Capital- PART 1

August 7, 2009 by Chris  
Filed under Leadership Skills

Businesses come in to being only with proper planning, funds, working professionals, and the major of it venture capitalists. You have to be having a full proof design of your business planning with proper outflow and inflow of funds that would come to the company. In the trying times like our current trends in the markets world over, getting finance is very much a tough job. You have to be sure of being successful in your venture, than can you think of getting some finance help from your investors. I remember the times when I started off, how difficult it was to even get an appointment and in all the hustle and bustle explaining them your business portfolio, etc. My god, I have never felt this much exhausted even in my scholarship exams but the financiers of my companies.

need venture capital?Initially, when I started out I thought whatever finances we had are more than sufficient to get us going, I knew and was sure of my products and blogging was a new industry then, so I was confident enough to pull in investors, if need be. Luckily, we made good money from the initial few assignments and gradually as the year passed we were famous in the blogs world, people knew us, what we are doing and what our purposes are. At one point of time I felt like selling my blogs network and in fact many offers did come through, we were established official business entrepreneurs.

Slowly as we gained market reputation I could see, how investors are more than willing to lend us money, at that point I wondered what it takes to build a market reputation and how difficult it is to get finance unless you have some real good position in market. I was sure of our business plans and I knew they are going to be hit, we did take some loans from investors to make our company bigger by pulling in more employees, writers, the technical staff, etc. the big companies borrow money from some bank financiers and then investing them in handful of companies and keep earning profits over a period of time. It’s actually a good deal to do such business rather than wasting your time in selling your products in the market.

No matter if you have don’t have good money in your business, it happened with me a couple of times but that didn’t turn me off from achieving my goals for future, I kept trying on and on and took my company ahead with whatever little money I was earning and today I stand at the position to be amongst the top few blogs networks. I had just like to advice my dear young blog masters that if you ever fail in getting finances for your company, don’t ever give up, keep trying, remember if, “If One door closes, another opens up”! I would like to share some of the things that I feel you should know before you step in to the world of blogs and raising finances:

  1. No venture capitalists would ever give you money without the company being actually launched; you have to have hard proof to show them your worth. If not the real company show them the Beta version of your company either virtually or on papers, at least that might impress them of your talent.
  2. If someone has built a huge empire, obviously he has got brains but that doesn’t mean that they are the smartest of all around, show them your smartness too in your work. Do not lie to them about your plans; give them the honest answers of whatever they ask you regarding the business venture.
  3. Know the basics of capital financing; there are 3 different types of finances available – early stage, expansion capital and buyout capital. So before you go about pitching, make sure that you know what you are looking for.
  4. It’s best to pitch for bigger capital, when you are approaching some huge multi national company; they are not interested in small finances. So make it look huge.
  5. Most of the venture capitalists are truly interested in the business you are doing and the money you are raking in, no one has got time to read in depth report about your business plans. They want to see you launching your company rather than wasting time in any talk show.
  6. Time and again I have been telling people to build some market reputation and that comes through networking and providing great services. Get to know Investors through conferences or social networks; you can get in touch with them by commenting or putting suggestions for them on their sites or through drop box.
  7. In my endeavors with investors, I have known the fact that the investors themselves are borrowing money from some other richer party to invest money in your business. So if at all you hear companies getting screwed by them, know the fact that investors have bosses too, to answer to.
  8. Ready with your business, try explaining them to your close friends or may be a kid, if he can understand your model well obviously investors would understand them.
  9. Before proceeding with your business models to investors’ office, recognize what type of investors you really need for your business. There are 2 types of investors, the one who would invest money and the other who can invest money plus knowledge – these investors are called as strategic investors and they are the one you should be looking out for.
  10. If you are looking out for multiple ventures and want to raise some real good money, you would require more than one venture capitalist (VC), you can approach them and most of the time, they will be more than willing to lend you, if another VCs has given you the money. So it’s the mental attitude that is profitable to you.

It’s easy to get people invest in your business ventures provided you are confident enough of your projects and the way you portray your business in front of venture capitalists is of utter importance. I had like to discuss few more things relating to Venture capitalists, join me in next blog.

Writing a business plan outline – Business Planning

July 22, 2009 by Chris  
Filed under Leadership Skills

Plan Ahead For A Better Tomorrow

Getting into business world requires a good business planning, unless you plan ahead to strive for your objectives you are not going to be successful any where in your life. Some years ago, when I started with my own business unit I was struggling to come out of the mould of competition every where around me, I was so confused about what to do and merely dint had any cash to expand my business, this was the time I realized what should have been done when I started off. I realized one very important aspect of a business or a company, that to run it successfully without any glitches you have to plan ahead and execute them when needed.

planning for the better tomorrowI have few of my websites which were not running well until a few months ago, when I realized this fact, as soon as I did I made necessary changes to my schedule and made a special time in which I should be thinking of planning ahead for my varied business units. You must have come across a famous quote, “Rome was not built in a Day”, this particular sentence tries to deliver the message that nothing happens in just one day, it’s a gradual process, whether its failure or success, both happens with due planning for future. Big enterprises across nations are just not running on day to day scale, they have proof read plans to run their companies well in advance counting on inflationary measures, natural disasters, crashing of stocks, etc.

We cannot predict our future, so whatever line of business or industry you choose, its better that we see pros and cons at the very start so that when we face them unfortunately, you are ready to help yourself. Now if we are thinking from the blogging point of view, you will see so many websites and networks have crashed down, and there are no takers for them, what do you think might be the reason? Do you think they might not have put much efforts in to marketing them or optimizing their sites, when a person is headed out, he must have surely planned how things would happen but he lacks in one particular aspect that is planning ahead, if they might have planned well in advance in situations like the recent recessionary effects seen all around the globe then I feel they might have been saved. I have seen businesses come down to Nil positions because of the recent back lash in stocks trading, export and import industry, domestic trade, all because of one fundamental reason of RECESSION.

Fairly speaking, I never started with my blogs with the objective of making money, it was my passion for writing that bought me here, I love interacting with my readers and love to research on different topics to be posted here. It’s been 2 years now, I am continuously blogging and I see times have changed I have much larger of networks then I earlier did. There are times when I have very less number of visitors on my site but that doesn’t divert me from my goal and I keep planning ahead by writing my blogs on a regular basis and also joining social networks which would help me come up again from the down fall.

In blogging world, anything and everything is possible, you can earn handsome money in just one go or you can be criticized for your work. There are 2 aspects in this and I feel you can select on what side you want to be? Most of you’ll would select the first option and why not because it sounds very pleasant, you feel like you are a million bucks when you start earning at very young age. There are times when I get so tied up with my other businesses that I don’t get time to write blogs and there are no scheduled posts either at my end, I know well, the consequences of stale blogs over networks and what impression it would give to others on the network but as I often keep stating that “content is the king”, no one can rob you of this great talent. If you have worthy blogs, people will at least appreciate what you had written already other than criticizing you.

The world of blogging is very synonymous with the word consistency; you have to maintain your niche to stay ahead with due planning of what topics you would state next or any links you want to share with your users. Sometimes it so happens your readers want to hear more from you for a particular topic, then here I plan well in advance to write a continuous blog on earlier blog I have posted. Such are things which need attention and alert ness. Writing scheduled posts are the best means to avoid any discontinuation in putting fresh blogs each day. Plan well in advance for events you feel can have disastrous effects on your organization.