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Strategic Pathways: Unleashing Business Planning for Success

Planning

In the dynamic and ever-changing business landscape, having a solid plan and a well-defined strategy is crucial for long-term success. Effective business planning and strategy development help organizations navigate uncertainties, seize opportunities, and achieve their objectives. In this blog article, we will explore the key elements of business planning and strategy development, along with practical tips to help you master this essential aspect of running a successful business.

Understanding Business Planning:

Business planning involves setting objectives, identifying strategies, and outlining the actions necessary to achieve those objectives. It provides a roadmap for success and serves as a guide for decision-making and resource allocation. A comprehensive business plan typically includes elements such as an executive summary, market analysis, competitive assessment, financial projections, and implementation strategies.

The Importance of Strategy Development:

While business planning focuses on the overall direction and objectives, strategy development delves deeper into the specific approaches and tactics needed to achieve those objectives. Developing a robust strategy involves analyzing the competitive landscape, identifying market opportunities, assessing internal capabilities, and aligning resources to maximize competitive advantage. A well-crafted strategy provides clarity, sets priorities, and ensures efficient resource allocation.

Key Steps in Business Planning and Strategy Development:

A. Conduct a Situation Analysis: Begin by evaluating your internal and external environment. Assess your strengths, weaknesses, opportunities, and threats (SWOT analysis) to gain a comprehensive understanding of your business’s current state and competitive landscape.

B. Define Clear Objectives: Establish specific, measurable, attainable, relevant, and time-bound (SMART) objectives. Clear objectives provide a sense of purpose and direction for your business and serve as a yardstick for evaluating success.

C. Identify Target Market and Customers: Determine your target market segment and identify your ideal customers. Understand their needs, preferences, and buying behavior to tailor your strategies accordingly.

D. Develop Competitive Strategies: Analyze your competition and devise strategies to differentiate your business. Identify unique value propositions and develop competitive advantages that set you apart from others in the market.

E. Create an Action Plan: Outline the specific actions and initiatives required to achieve your objectives. Break down your plan into manageable tasks, set timelines, and assign responsibilities to ensure accountability and smooth execution.

F. Monitor and Evaluate: Regularly review your progress against the set objectives and make adjustments as needed. Monitor market trends, consumer behavior, and industry developments to remain agile and responsive to changes.

Tips for Effective Business Planning and Strategy Development:

A. Foster a Culture of Innovation: Encourage creativity and foster an environment where new ideas can thrive. Embrace innovation as a key driver of growth and adaptability.

B. Involve Key Stakeholders: Engage key stakeholders, including employees, customers, and partners, in the planning and strategy development process. Their input and perspectives can provide valuable insights and enhance the effectiveness of your plans.

C. Embrace Flexibility: Recognize that business environments are constantly evolving. Build flexibility into your plans and strategies to accommodate unforeseen changes and seize emerging opportunities.

D. Leverage Technology: Utilize technology tools and platforms to streamline planning processes, gather data-driven insights, and enhance collaboration within your organization.

E. Continuously Learn and Improve: Regularly assess the outcomes of your planning and strategy efforts. Learn from successes and failures, incorporate feedback, and adapt your approach to improve future outcomes.

Conclusion:

Business planning and strategy development are critical components of achieving long-term success in today’s competitive marketplace. By understanding the key elements and following the steps outlined in this article, you can develop a robust plan and strategy that align with your business objectives, adapt to changing circumstances, and drive sustainable growth. Remember to embrace innovation, involve stakeholders, and remain agile as you navigate the ever-evolving business landscape.

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Unleashing Innovation: From Idea to Startup Success

Startup Success

Starting a new business is an exhilarating journey that requires passion, perseverance, and much innovation. Entrepreneurs embark on this path, hoping to turn their groundbreaking ideas into successful ventures. However, the way to entrepreneurship is paved with challenges, from refining and nurturing innovative ideas to securing funding and navigating the ever-changing landscape of startups. This article will explore the critical aspects of entrepreneurship and startup success, providing valuable insights and practical tips for aspiring business owners.

Nurturing Innovative Ideas

Innovation is the lifeblood of entrepreneurship. Nurturing and refining innovative ideas is crucial to launching a successful startup. Here are some strategies to help you promote and develop your ideas:

A. Problem Identification: Start by identifying a problem or pain point in the market you are passionate about solving. Conduct thorough market research, engage with potential customers, and analyze existing solutions to gain a deep understanding of the problem.

B. Ideation and Validation: Generate a range of potential solutions and test their viability. Utilize brainstorming techniques, build prototypes, and seek feedback from trusted advisors, mentors, and potential customers. This iterative process will help you validate and refine your ideas.

C Market Fit: Assess the market demand and ensure your idea aligns with market needs. Identify your target audience, their preferences, and their willingness to pay for your solution. This step will help you gauge your idea’s viability and potential success.

Launching New Ventures

Once you have a solid idea, it’s time to transform it into a tangible business. Here are the key steps to successfully launch your startup:

A. Business Plan: Develop a comprehensive business plan that outlines your vision, target market, marketing strategies, financial projections, and growth plans. A well-structured business plan will help you clarify your goals and attract potential investors.

B. Building a Team: Surround yourself with talented individuals who share your vision and complement your skills. Recruit team members who are passionate, dedicated, and possess the expertise required to drive your startup forward.

C. Minimum Viable Product (MVP): Develop a minimum viable product or prototype demonstrating your solution’s core features and value proposition. This will allow you to gather early feedback, validate your concept, and make necessary improvements before investing significant resources.

Securing Funding

Funding is often a critical aspect of turning your startup dreams into reality. Here are some avenues to explore when seeking funding for your business:

A. Bootstrapping: Start with self-funding or funding from friends and family. Bootstrapping gives you greater control over your business and demonstrates your commitment and dedication to potential investors.

B. Angel Investors and Venture Capitalists: Research and reach out to angel investors and venture capitalists specializing in your industry. Prepare a compelling pitch deck and business plan to showcase your idea’s potential and secure investment.

C. Crowdfunding and Grants: Consider crowdfunding platforms or apply for government grants and startup competitions. These avenues provide access to capital while creating awareness and building a customer base.

Navigating Startup Challenges

Starting a new business is always challenging. Here are some common hurdles you may encounter and strategies to overcome them:

A. Adaptability and Agility: Stay agile and be open to change. The startup landscape constantly evolves, and adaptability will help you pivot when necessary and seize new opportunities.

B. Networking and Mentorship: Build a strong network of mentors, industry experts, and fellow entrepreneurs. Their guidance and support can help you navigate challenges, offer valuable insights, and provide access to resources.

C. Resilience and Perseverance: Starting a business is a rollercoaster with ups and downs. Cultivate resilience, stay motivated, and learn from failures. It’s essential to keep pushing forward despite setbacks and believe in your vision.

Conclusion

Nurturing innovative ideas, launching new ventures, securing funding, and navigating the challenges of starting a new business are all part of the exhilarating journey of entrepreneurship. By following the strategies outlined in this article, aspiring entrepreneurs can enhance their chances of success and overcome the hurdles that come their way. Remember, entrepreneurship requires creativity, resilience, and a relentless pursuit to make your ideas real. So, take that leap of faith, be prepared for the challenges, and embark on an exciting adventure toward building your startup.

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Unveiling Profitable Business Ideas: Methods, Research, Opportunities

Business Ideas

The journey of entrepreneurship begins with a compelling business ideas. However, not all ideas possess the potential to become profitable ventures. Identifying a viable business opportunity requires careful evaluation, thorough market research, and an understanding of the current landscape. In this article, we will explore effective methods to generate and evaluate business ideas, delve into market research techniques, and discuss ways to identify viable opportunities that can lead to business success.

Generating Business Ideas

A. Problem-Solving Approach: Start by identifying problems or pain points in society or specific industries. By offering a solution, you can create a business that fills a gap in the market.

B. Personal Passions and Interests: Consider your own passions, hobbies, and expertise. Building a business around something you genuinely enjoy can provide motivation and a higher chance of success.

C. Observing Trends: Stay up-to-date with current trends and emerging technologies. Look for innovative ways to apply these trends to existing industries or create entirely new markets.

D. Brainstorming and Ideation Sessions: Collaborate with others, engage in brainstorming sessions, and bounce ideas off each other. Sometimes, a fresh perspective can spark a breakthrough idea.

Evaluating Business Ideas

A. Market Demand: Assess the demand for your product or service by conducting market research. Look for target audience size, competitors, and any existing solutions. This analysis will help determine if there is room for your business and if customers are willing to pay for your offering.

B. Unique Value Proposition (UVP): Identify your business’s unique selling point. What sets your product or service apart from competitors? A strong UVP differentiates your business and attracts customers.

C. Feasibility Analysis: Evaluate the feasibility of your business idea by considering factors such as cost, resources, scalability, and legal requirements. Assess if you have the necessary skills or if you need to partner with others.

D. Profitability and Revenue Streams: Determine how your business will generate revenue. Explore various revenue models, such as product sales, subscription-based services, advertising, or licensing. Calculate potential profit margins and consider long-term sustainability.

Market Research Techniques

A. Surveys and Questionnaires: Create surveys to gather data from your target audience. Understand their needs, preferences, and pain points. Tools like SurveyMonkey or Google Forms can help you collect and analyze responses.

B. Interviews and Focus Groups: Conduct one-on-one interviews or group discussions to gain deeper insights into customer behavior and opinions. This qualitative research can provide valuable feedback and uncover unmet needs.

C. Competitive Analysis: Study your competitors to identify their strengths, weaknesses, and market positioning. Analyze their pricing, marketing strategies, and customer reviews. This knowledge will help you differentiate your business and refine your value proposition.

D. Industry Reports and Secondary Research: Explore industry reports, market trends, and statistics provided by organizations, research firms, and government agencies. This information can offer valuable insights into market size, growth potential, and emerging opportunities.

Identifying Viable Opportunities

A. Target Market Analysis: Identify your ideal customer segment and define their demographics, interests, and behaviors. Understanding your target market will guide your marketing efforts and help you tailor your offering to their needs.

B. SWOT Analysis: Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to evaluate your business idea’s viability. Identify your strengths and weaknesses, assess potential opportunities, and analyze potential threats to your business’s success.

C. Test Minimum Viable Product (MVP): Create a prototype or minimum viable product (MVP) to validate your business idea. Gather feedback from early adopters or beta testers to refine your offering and understand market response.

D. Seek Expert Advice: Consult with industry experts, mentors, or business consultants who can provide valuable guidance. Their experience and insights can help you assess the viability of your business idea and overcome potential challenges.

Conclusion

Identifying a profitable business idea requires a blend of creativity, research, and strategic analysis. By employing the methods discussed in this article, you can generate innovative ideas, evaluate their feasibility, conduct comprehensive market research, and identify viable opportunities. Remember, the key is to continuously adapt and refine your business idea as you gather feedback and insights from potential customers and industry experts. With persistence and a well-researched approach, you’ll be on your way to finding a profitable business idea that can pave the path to entrepreneurial success.

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Ready to Compete Globally? Time to Find Investors!

Globally

More and more businesses are looking for investors to fund a global expansion. More and more investors are looking for businesses ready to go globally. The business landscape is changing rapidly, and small businesses are expanding internationally right along with the big corporations. The internet can probably be named as the primary motivator for this trend because it made it so easy to communicate with people around the world. Orders can be placed with a click of the mouse. Governments recognized the opportunities this created and have created laws and regulations that promote global business.

Naturally, investors want a piece of the action. They are looking for companies that can successfully expand through globalization because the opportunities are unlimited. Of course, participating in international trade can be expensive so it’s not a decision made lightly. Yet there are so many advantages to expanding internationally that it makes sense.

What are those advantages? For one thing, a business can increase sales and thus profits which makes the company more attractive to investors. Other reasons include gaining greater market share, spreading risk by expanding market access, stabilizing seasonal sales cycles and establishing a foundation for unlimited growth. All of these reasons are exactly what can make a business attractive to investors.

Of course, expanding globally takes money. There are import and export fees, expanded production costs, higher shipping costs and the expenses associated with new promotions like marketing and travel. Investors will balance the higher costs to the expected increase in revenues and profits before making a decision. Investors will also weigh the risks associated with the global expansion. This balancing act though is one that the business should have already mastered in the business plan.

 

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Business Plan Mistakes to Avoid

Plan

Writing your business plan is probably one of the most important business duties you will assume. If you follow a quality business plans template you will cover the basics of the plans, but there are still common mistakes made by entrepreneurs that hurt their cause. It is reminiscent of the teacher in school who gave you the parts of the essay for easy outlining and then marks points off because the essay is too long or too boring.

Following are some of the most common errors made in business plans. Some of them are simple errors, but that doesn’t minimize their importance. Other are mistakes usually made due to lack of experience. Either way, these mistakes can hurt the effectiveness of the overall business plan.

  • Including more than one business model in the false belief that more information and more strategies are always better (not true!)
  • Lacking cohesiveness throughout the business plans
  • Difficult to read due to illogical or poor layout (another reason to use a business plan template)
  • Including unsupported projections or estimates
  • Not fully analyzing the competition
  • Failing to prepare all required sections of a business plans (making your plan look amateurish or as if you are hiding something)
  • No value proposition separating your business from the competition
  • Not letting anyone else read your business plan and provide feedback before submission
  • Making the business plan difficult to read because it is written using mostly hard-to-understand industry or discipline terms (i.e. your funder may not know much about technology so using technical jargon will make the plan too difficult to understand)
  • Showing lack of understanding of the niche market to be served

These are certainly not the only mistakes, but they are some of the most common. You want to avoid writing a business plan that is too long and tedious, is not well written, and is boring. Though funders are often professionals looking for the next great business investment opportunity, they are also human. Grammatical errors and boring prose can quickly discourage anyone reading the business plan. It seems your essay teacher was right all along.

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Does the Business Plan State Your Value Proposition?

Proposition

The ideal business plan is composed of more than just history, marketing and financial sections. It should also convey the value proposition to the angel investors you approach about business funding. Typically, angel investors are sought after a business has been established so it’s possible to show real products, actual customers and a working business model. However, the angel investors will want to know how you define the company’s value proposition.

The business value proposition is developed with the marketplace in mind. The value proposition defines why people in the target market should buy your products or services. It defines what benefits purchase of the goods or services will provide or what problem will be solved by product or service use. It sounds like the statement would be long, but it should be kept short which forces the business owner to concisely explain the value the company is bringing to the marketplace and the relevance of the product to the customer. If it takes a long winded explanation then there’s  good chance the business owner has not fully developed the business concept.

The value proposition is important to the angel investor because it concisely differentiates the business among its competitors and reflects an alignment of business operations with the market. The value proposition must also reflect specific results or performance and is not a generalized statement that any business could use. For example, a consulting business could say that it can help customers get a high return on investment , but that would be a weak value proposition. A strong value proposition would say that the business can demonstrate customers will experience an improvement of 15% Return on Investment (ROI) by using the company’s state-of-the-art proprietary software.

Angel investors expect a business plan to have a value proposition that quantifies market results and also states the source of its competitive advantage. That should never be a problem if a company is serious about success.

 

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Having Trouble Writing Business Plan Goals and Objectives?

Objectives

One of the important components of a business plan is clearly defining objectives. Stephen Harper in Starting Your Own Business (McGraw Hill) writes, “Objectives can be viewed as dreams with a deadline.” The point he is making is that objectives should be specific in terms of projected amounts and timeframe.

For example, you would not write an objective like this: The business will grow over the next 5 years. You would write it like this: Sales are expected to be $2 million in 5 years and the business will be one of the top 5 niche market leaders. The dreams you have for the business should look ahead and establish where you want the business to be positioned or how much growth is expected within a set period of time. The dreams should also be reasonable, based in facts and business reality, and achievable.

For example, if you plan on opening 5 franchise businesses within 10 years (1 every 5 years) the objective should be stated as such. However, you should also be able to support plans for opening these franchises in the competitive analysis section of the business plan. If the market is already close to being saturated, those 5 new franchises may be difficult to open. When objectives are focused and sensible, the business plan will become a living breathing document that supports your dream.

If you are having trouble setting objectives for the business plan, there are some questions you can ask yourself to develop focus. Ask yourself what your ultimate goal is 5 years from now. Picture yourself as an entrepreneur 5 years from today and imagine the level of business success you want to succeed. Ask yourself questions like how many sales people you hope to have working and how much market share you want to gain. Picture yourself as successful and put your definition of success in writing.

Objectives will become clear when you take the time to look into the future. Though a business plan is not a crystal ball, it is a driving force with strategies for achieving success. Set clear objectives first and the rest of the business plan will be a lot easier to develop.

 

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Profitable Small Businesses that are Worthy of Your Investment

Investment

Starting up a business is a challenge. Whether it is small or big, you need to follow a series of steps along with different strategies to make it a profitable venture. To make a business worthy of your investment, it is necessary to perform thorough research on each aspect such as a business idea, market, competitors, and finances etc.

Once you find the best idea, your next step should be based on logistics of your business along with a well-crafted plan. These steps are fundamental and crucial. This way, you will create a strong base for your business as well.

So, if you are looking for a small startup that is worthy of your investment, have a look at these 10 fantastic business ideas.

1.    Real Estate Broker

Working as an intermediary between sellers and buyers, real estate brokerage is one the most profitable businesses. You will only require a brokerage license. This is also a cost-effective business idea, which means you can run it without an office as well.

However, you need to know the industry and your competitors before beginning and then you are good to go. Plus, real estate brokering is all about contacts; make sure lots of people know about your business so you can achieve your milestones.

2.    Catering Service

Catering is ideal if you are looking for a small but profitable business as you can provide these services from your home. Many people and even businesses do not think twice to pay high-quality caters. With reliable catering services, you are sure to make a handsome profit, especially on different special occasions.

If you are a hard worker and determined to build a successful small business, catering seems a decent business idea.

3.    Online Tutor

Online tutoring involves creating professional social media profiles and letting people know about your skills. Whether you love to play musical instruments or know different languages, you can teach anything online and become an online tutor.

Online tutoring neither requires extra expenses nor time. So, you can consider it if you can speak fluent French or play different piano tunes.

4.    Food Truck

Food always stays in demand and attracts people. Therefore, you can never go wrong with a food truck, especially if you provide high-quality food and beverages. Take note that opening a small restaurant requires a considerable amount of money.

Plus, there is a risk of loss because of intense competition in the food industry. In this case, a food truck seems an interesting idea. You do not need space or extra staff which makes it a profitable small startup venture.

5.    Personal Trainer

People who love to stay fit and healthy never mind paying their personal fitness trainer. Also, getting certification in personal training is affordable as well. Thus, you can get the required qualification and start offering personal training services.

This is one of the small businesses that are worthy of your investment as in current times people know the significance of a healthy lifestyle. Since this industry is competitive, you should use the internet to market your services and to build your client network.

6.    Web Designing

Technology companies are always looking for web designers who can make top-notch websites. Web designing entails developing value-driven, intuitive and beautiful websites.

If you have got an eye for website designing, you can offer these services to various companies and brands and start your web designing business. If you are new to this field, you can even learn the basics of website crafting and become a pro. Moreover, there are many online courses available that can teach the latest website trends as well.

7.    Social Media Marketer

Social media platforms have become a part of our daily life. Not only this, many people are running their businesses online on these platforms. You can start marketing on your social media profiles as well. For instance, you can use your Instagram account for marketing purposes.

All you need to do is decide the type of content you are willing to share such as technology, beauty, or health etc. and build up a considerable following on your account. Brands often look for social media accounts with a huge following to market their products. If your content is related to their business, they are likely to approach you.

8.    Local Business Consultant

New startups are always in demand of consultants who can solve problems related to their business and provide solid advice. Therefore, if you have developed the right skills or are a pro in your industry, you can become a consultant.

Whether you are a business strategist, marketer, or have other skills, feel free to offer your services to local businesses. Plus, you can take help from online courses on how to get clients and build your brand that is worth your investment.

9.    Travel Consultant

You can turn your love for traveling into a profitable small business. You can begin by creating official groups on Facebook or LinkedIn. This is an effective way to attract travel enthusiasts. In the group, you can share cheap flight rates and even recommendations for next traveling destinations.

Travelers are always in search of different recommendations to explore different places. In this case, they can count on you and you can teach them how to turn their dream trip into a reality.

10.    Become a Photographer

Turning your skills into a small profitable business is easy if you have a passion for photography and you own a camera. All you need to do is learn top-notch editing skills which are crucial in this industry along with finding a suitable niche, such as food photography or travel photography etc.

To build an impressive online portfolio, you should do photo-shoots frequently so people will know about your skills. For this, you should not hesitate to capture a few photographs for free. With a professional portfolio, you are likely to get clients in a short time.

Bottom Line

There are plenty of ideas that are worthy of your investment. However, the competition in different industries can give you a tough time. You can overcome this part if you focus on the quality of your services.

 

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Enterprise Turn to the Right with the Help of Angel Investors

Enterprise

You have a business enterprise, but it’s just not taking off the way that you planned, or business has slowed down significantly after a stellar few years. Along the way though, you have been able to learn much more about what the market demands and can amend your approach with great success with the right funding. Sometimes it’s necessary to reinvent your business to fit the marketplace and take advantage of what you have learned to date through missteps or experience. It’s a sharp turn to the right that can help a business take off again and angel investors can help you turn the wheel with angel funding.

Sometimes entrepreneurs have a good idea that needs tweaking, but they don’t know it needs adjusting until they enter the marketplace. In the age of technology, customer needs can change rapidly, and you must be able to accommodate those needs through innovation. Business based on excellent ideas aren’t always successful after a period of time simply because they need a new look, a new approach, a refined marketing plan or an adaptation.

All too often businesses are driven into the ground because owners refuse to acknowledge that the economy has shifted or that their market niche has changed expectations. It’s a case of stubbornness in many circumstances because it’s tough to consider changing a brand that has time, money and effort behind it. However, your brand won’t do you much good if your company dies a slow death because you failed to listen to what the market is telling you.

Turning Towards Success

Reinventing your business with the help of angel investors can change a struggling business into an adaptable one that is always one step ahead of customers. Angel investors don’t just fund brand new businesses. They also fund existing businesses ready to change course to take advantage of a changing economy or a changing marketplace. Companies reinvent themselves every day with enormous success and many are companies well recognized – Apple computers, HP, GE and others. However, you don’t have to be a major corporation to understand that market adaptability is one of the most important keys to success.

Unfortunately, there are thousands of entrepreneurs who refuse to admit they need to pivot in place and head in a new direction. The advantages of adapting is overshadowed by the fear of failing, so the business is allowed to die a slow death while reinvention ideas are left languishing in the dark. It’s not for lack of funding either. Angel investors are investors willing to accept risk for financial gain and are looking for companies that have a new idea and a new way to penetrate a changing economy. Angel investors, like venture capitalists and equity partners, embrace innovation, new approaches and new ideas.

Reinvention can take many forms.

  • Technological changes in products or processes
  • Response to competition in the form of new products or services
  • Upscale reinvention of brand
  • Change or expansion in products or services in response to changing customer base
  • Expansion in the definition of the niche market

Angel investors are more than willing to invest in companies that are ready to take a new path. In fact, you have a lot to offer angel investors right from the start because you have a business track record. The fact you are currently in business is a major benefit and selling point and often enough to get an investor’s attention sooner rather than later.

Pivoting on Core Competences

If you have a desire and need to take a sharp turn to the right in your business, the first step is developing a business plan around your core competencies. Those core competencies are the strengths of your business around which you will pivot your plans for new products or services, increased market penetration or business expansion based on a reinvention platform.  Clearly explain your new idea, track record, the problem you will solve or the market you will serve, the benefits offered to the marketplace, the revenue opportunities and how reinvention strengthens and rather than weakens your enterprise, and angel investors will have plenty of good reasons to join your efforts.

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Understanding Venture Capitalists: How to Get Their Attention… And Approval

venture capitalists

It might be surprising, but a lot of venture capitalists understand the situation of would-be entrepreneurs who are looking for investors who will finance their startups. The reason for this is simple: these people who now have millions of venture capital funds stashed in banks also started as a small company owner who experienced the challenges of looking for someone who is interested in providing financial support.

They might have followed the traditional venture capitalist model or used personal means – such as credit cards and personal guarantees – to raise significant amount of money. But one thing is clear – most venture capitalists understand the position of startup owners. And this shows their true nature when it comes to dealing with these kinds of partnerships.

Unlike the common conception that they are all too powerful and very difficult to please, venture capitalists are also human. And because most of them have experienced and succeeded in this industry, the requirements that they ask from startup owners should be seen as reasonable and realistic. Here are some of the traits that startup owners applying for financial support should have:

Passion – Those who are passionate, enthusiastic, and confident with their startups usually get not only the attention, but also the approval of investors.

Intelligence – Knowledgeable would-be entrepreneurs always have the advantage. Venture capitalists think that intelligence is tied with the success of the company.

Defensibility – Having a great concept is one thing, but being able to defend it at different levels is another. Most of the time, investors will point problems on the concept submitted by the startup owner. He or she must be able to defend the idea and convince venture capitalists that the problems can be resolved.

Contrarianism – Investors are waiting for the next big thing. Thus, unique ideas that have huge potential almost always get the nod of venture capitalists. After all, nobody wants another social networking site, not if we already have Facebook. We want something new.

Perseverance and Persistence – Startup owners who exhibit determination on their ideas always get the attention of investors. Consistent follow-ups and immediate response to queries sent by the potential investors show how important the deal is for the entrepreneur.

Humility – Despite the need for passion and determination, startup owners also need to have an ounce of humility. One must keep in mind that even the best actors or athletes have to follow the orders of their directors and coaches, respectively.

Aside from the traits enumerated above, would-be entrepreneurs should also understand what goes in the mind of venture capitalists. Usually, it only involves two things: fear and greed.

As noted earlier, investors want to put money on proposal that will be as big as Facebook. Because of this, they are afraid of letting a potential project go (fear). Also, venture capitalists look at the things that they will get once they finance a startup. This includes profit, recognition, and a powerful position within the company, among other benefits (greed).

In the end, it all comes down to these two. And startup owners might want to use these to their advantage. Of course, it would not be easy. Venture capitalists are experienced people who will know if they are being manipulated. But having the knowledge of what they want is something that could spell the difference between failure and success.

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