Last blog we discussed about Venture capital and the things that you need to keep in mind while raising finances for your business ventures. You got to have right amount of ingredients to mix well with business requirements, the investors have the money and you have the talent, just show your cards right and go home with a win-win situation for both the parties. Make use of intelligent and unique methods to impress your Venture capitalists and get ahead in expanding your business.

Understanding DECK

By now, I think I have improved my thinking about how venture capitalists work in a business world and how to make them more approaching to finance you; it will work best when you have a readymade Powerpoint presentation, commonly known as “Deck”. Deck can be used to pitch your Venture capitalists about your business; it will give them a clear picture of your project by the graphs, pictures, etc. I am going to help you to prepare that perfect DECK for your presentation; it should be including the following:

1. All the companies have their own mission statements, so make sure to mention all the details of what your company is into and where you plan to take it.
2. A company is made up of team, one person cannot run the company. You should be good in convincing people to work for your company than can you convince VC to invest money.
3. Once your company is established, make sure to do something out of box, like you can portray how your company has stood in the times of adversity.
4. Don’t just describe the problems that your company can solve, show them practically through slides, graphs and the product details.
5. Compare your company to other competitors in the field, list them down in your slide show, you can explain your plans to overcome the competition.
6. Do some research in the market and you can state the different problems which as a company everyone will face. You can offer simple solutions to such problems through slide show.
7. Have a brilliant business model showing a perfect sense of making money by hook or by crook. You can list out different possibilities in making money to your investors.
8. Marketing is one of the most important ingredients to sell your products in market, show a clear plan of act what you are going to execute in future.
9. State clearly as to how much finance you would require and what would be its purpose, when you state openly about your wants people will appreciate it.
10. Investors would want good returns for the money they are investing, so make an effort to show them how hard you are working to achieve the goals.

With all heavy inputs, I am sure you are going to be questioned from 360 degree angles. I know well how it feels when you are surrounded in a conference and heavy weights asking you questions out of jungle but if they are investing, it is their right to know the answer. My advice to you is simply, stay calm and have confidence in yourself and answer the questions honestly, if you are well prepared and studied your plan in detail, I don’t think any possibility of someone surrounding you. Some of the common questions that they ask during such times are:

1. What is your target?
2. Why you need finance from us?
3. Why should we finance you?
4. What makes your product different from the competitors?
5. What if you can’t get any finances?

Believe me, I have attended so many conferences, meetings, given presentations, one thing I found was that you cannot expect people thinking from your point of view, you can only try your best to explain them but the perceptions would never be the same. I remember, the times when I used to go crazy when asked with silly questions but I let it go, staying cool and calm, may be that they are trying to check my patience. You never know what’s running in their minds. So stay upright, lively and get kicking.

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.

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.