Now the electronic age has brought an avalanche of new gizmos to the equation, such as CDs, emails, and online business plans. A cell phone number has become as essential as a business land line.

Just how useful are these gizmos, really? In truth, by themselves, they are just not very useful at all.

For instance, it is not unusual for me to receive emails with business plans attached. Some come with a cover note in the email, some don’t. They all get trashed without being opened.

What the dickens makes that entrepreneur think that I’m going to spend my time and money to open the business plan, print it on my printer, and then cheerfully read it, especially when I might be letting loose a new virus into my computer system?

Hog wash.

A variation on this theme is a rather arrogant young CFO I know who sends out the business plan in a CD format. “It’s cheaper than printing,” he says. It also saves a lot of time, since he won’t have to spend any time at all talking with the venture capitalists who don’t call. Heck, he saves himself out of business before he ever gets started!

There are some valid uses for e-technology in the funding process, such as:

1) Angel investor groups are increasingly using an online submission form;

2) Venture capital firms sometimes request an online submission form and approval for submitting a full business plan;

3) Attaching a CD to your hard copy business plan is an excellent way to include bulky or complex information, such as patents and financial drill downs;

4) Including your web site, or a link to it, on the CD is important, especially if your business relies on its web presence for business;

5) Creating an online business plan for investors is an outstanding means of spotlighting your team, your product, your marketing skill and all the other elements of your business plan; and

6) Email is invaluable for keeping in touch with the investor and providing timely responses to questions.

But first start with your traditional business plan. You will need it. No matter how the process begins, at some point you will present your formal written business plan.

It seems silly sometimes. With all the technology at our disposal, we still put our ideas into a formal written business plan.

The truth is that, once you are asked for the business plan, your investor is about 80% in your corner. Now he wants to judge your formal presentation and persuasion skills, so he asks for your business plan.

Investors just don’t lend on sketches on a napkin anymore, if indeed they ever did.

And, while the hard copy business plan is essential, even more essential is the process of developing that business plan. Creating a successful business plan doesn’t allow for many shortcuts. So, create it.

By the time you are ready to submit your application to an angel investment group online, you will have in hand all the confidence that your research and organization can possibly provide.

There is just no substitute for shaking hands with your lender or investor, and knowing, just knowing, that you have the answer to any question he may throw your way – that’s what the process of a successful business plan accomplishes.

It is no longer a question of whether or not to use e-technology. Rather, it is a question of how best to use it. Make that determination before you ever shake that first hand. With you ducks in a row, you would be amazed at how much easier the process becomes.

Author: MaryAnn Shank
Article Source: EzineArticles.com
Android apps

To obtain funding.
Every good potential lender or investor, be they bank, angel investor, venture capitalist or business partner, will require a business plan. They want to be comfortable that you have thought long and hard about your business rather than jumping straight into a business. More importantly they want to ensure that they have a good chance of not only having their investment returned, but also making a profit out of the arrangement.

Your business plan is your sales tool – it explains your business and your strategies to make this business a success. It shows how detailed and organized you are and how you intend to make a success of your business.

To introduce your business to potential investors.
The Executive Summary in undoubtedly the most important part of your business plan. Investors receive hundreds of business plans. They decide on their initial sort of who they want to investigate more thoroughly, by viewing the Executive Summary. Yours should be short, concise and eye catching. Investors like entrepreneurs who can concisely and accurately describe their business, products and potential. If you think of it, this is what an effective sales person does every day. If your business model is not planned well enough to be able to describe in a few well written pages then it is unlikely to be successful and very unlikely to be funded.

Once a potential investor has viewed your Executive Summary and become interested in your potential business, then they will read the rest of your business plan in order to gain a greater understanding of your business and investment requirements.

Your Executive Summary should be written after the main part of the business plan and should be no more than 3 pages long. It should summarize your business plan and include an overview of your business, your business models, what you are selling and in which market. You should also summarize your financial requirements and projections as well as provide your investor’s exit strategy.

To ensure that you have a carefully planned business
A well planned business is a business likely to succeed. Do you know who your potential customers are? Do you really know who they are, where they are and what they are looking to buy that you might be able to sell to them?

Do you know how to define your company within a sales environment? Where do you want your company to be in three years?

Do you know how many staff you will need? How you will pay for these staff?

Do you have a vigorous business model? Even know what a business model is?

Have you really thought through how you will run your business?

The answers to all of the above, plus many more will be discovered, decided and defined during the business planning process. If you use a professional business planning company, you have the advantageous of not only having a well written business plan, but you also benefit from the business knowledge of the planning company.

A well written and thought out business plan will help you to clarify your own thoughts about your business, how you want to present your company to your peers, customers and investors. It will help you find out who your best customers are, where they are, what they want to buy and at what price. It will identify any weaknesses you may have in your thinking. Lastly it will provide you with a business and marketing strategy combined with a robust financial model and business model that will give you confidence to make the leap into entrepreneurship.

…..and one why you need to have it professionally written.

Why use a professional business planning company?
A professional company will have experience of writing many different kinds of business plan for many different types of companies. A plan written for a Venture Capitalist is totally different to that which an Angel Investor or a bank requires. A professional company understands this and how to answer the particular concerns of each type of investor or lender. They will pitch you plan to your potential audience.

Investors are risking their hard earned capital by investing in your business and they are entitled to be comfortable that you have a clear business strategy a robust business model and have researched your potential market in great details. They also want to be comfortable that you understand all the risks that your new business faces.

Many business owners, who write their own business plans, often do not include all the information required or include information that is not required. Many amateur plans are unfocussed and discuss information that is not required in detail. An unfocussed and unstructured business plan gives off the wrong impression that you are also unfocussed and unstructured.

To a new entrepreneur you will be very short on time – in order to produce a business plan you will not only need a great deal of time to produce the plan but will also need to take time on a steep learning curve. A professional business plan company has climbed this curve and has enough experience to guide you through the whole process, set your mind working in the right direction and prompt your thought processes.

Hiring a professional allows you to concentrate on finding and servicing your customers, although a good professional will involve you at every stage and your input is definitely required to ensure that the plan reflects YOUR business.

Your business plan consultant will be objective in reviewing your business and have the experience to offer suggestions and advice during the writing process.

The money you pay for a business planning consultant will give you a quality, investor ready business plan with some very useful business consultancy as a bonus!

Author: Lee Lister
Article Source: EzineArticles.com
Cool mobile gadgets

Who are angel investors?

Angel investors are veteran businessmen who run successful businesses of their own. They help out entrepreneurs by investing in their businesses. The assistance is not free of cost, though. The angel investor will own a percentage of the business that he/ she invests into. Obviously, he/ she will also get to keep the profit made from his/ her percentage of the business. However, it is a very small price to pay, considering the benefit your business can get from an angel investor. You should always approach angel investors who live near the location of your business. This is because angel investors always prefer investing in businesses that operate near their homes or offices, so that they can visit the place often. Typically, the distance between the business investor’s home or office and the location of the business in which he/ she has invested should not be more than 50 miles.

How to find an angel investor?

There are some agencies that can help you to get in touch with an angel investor. However, the prices for their services are often sky-high, and almost impossible for budding entrepreneurs to bear. There are solutions to this problem, though. There are many websites on the internet that can help you find angel investors looking for new investment opportunities. One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country. Log on to the website today. You will not be disappointed.

Whether you intend to raise money from a financial institution or your family and friends, you should approach them professionally. Equipped with a detailed business plan, you need to impress them with your capabilities and the prospects of your business. No one would like to lend you money out of friendship.

In case of family or friends, you can ask them to be a financer or an investor, depending on the amount of money you need. If the money is given as a loan, you will have to pay back the capital and maybe, interest too. An investor needs to be paid a previously decided share of profits. You can even offer them partnership in your small business. It’s always wise to approach investors with a detailed proposal.

Your creditworthiness plays an important role in getting funds for your small business from banks. Even if you have a great and convincing business plan, banks will not risk money on you if you have a bad credit history. Your creditworthiness makes you eligible for personal loans. This, together with a comprehensive business plan, will make you a likely candidate for business loans.

Banks consider business loans, especially those for small businesses, risky. Most banks will be reluctant to give unsecured loans. The riskier your business, the harder it is to get loans. So when you approach banks for business loans, be prepared with a plan to pay back the money.

Another option is to seek out an angel investor or a venture capitalist to invest in your small business. These are people who have the money and willingness to invest in a business – to help the business owner to set up and run the business and to make some money while doing so. You can join forums that allow investment seekers to present their case to a host of potential investors.

Angel investors often hold meetings to explore and identify potential investment opportunities. It is not an easy task to convince these shrewd investors. You may have to present your business plan and revenue model to an expert panel. You may have to be prepared to face a barrage of questions.

This is because though angel investors and venture capitalists are ready to take risks, they will take only informed risks. If you can impress them with your presentation and give adequate as well as learned responses to their queries, your chances of raising capital for your small business are more. However, once they decide to invest money, they may not allow you to run the business all by yourself. These investors are likely to demand some ownership and control of your business. Additionally, if you can show them an exit route after a certain period of time, they will be more than happy to invest in your small business.

Another easy but tough option for small business owners to raise working capital is capital reinvestment. Invest the profit you earned from your business back into it, instead of indulging yourselves with the substantial paychecks.

For more information or to learn how to work with Maryjean, go to http://MaryjeanAHowe.com/?t=ez3.26.

Author: Maryjean Howe
Article Source: EzineArticles.com
Provided by: Duty on LCD/Plasma TV

For a few thousand dollars, consider using your credit cards or obtaining a new credit card account to fund the business. Use that card only for your business and you’ll have a way to keep track of your expenses as well.

Another avenue for finding money for starting a business is to use your home equity loan, especially if you need, say $5,000 to $10,000. The interest rate on home equity loans are usually much lower than credit cards, but be careful. If you can’t pay the money back or make the additional monthly payments you could lose your home.

Look towards the heavens if you need an angel investor. Angel investors are private wealthy individuals who invest from $50,000 to $100,000. Most of the time the company they invest in is high tech and looking at a fast growth period. Angel investors will become involved in the day-to-day management of your company so keep that in mind.

Venture capital receives a lot of press and does invest billions of dollars, but, and it’s a huge but, only about 20% of the companies receiving venture capital are start ups. The average investment by a venture capital firm is in the millions, so it’s not appropriate for small businesses. Less than 1% of companies seeking venture capital successfully obtain it, that’s only about 4000 companies per year.

You might consider alternative sources of financing such as obtaining inventory through consignment, royalty financing, trade and barter or purchase order financing.

Many small businesses think that a grant from the government will be their saving grace. Unfortunately there are very few government grants available for businesses. Those that are awarded, are done on a competitive basis to established companies usually in the medical or technical fields.

However, grants or very low cost loans, are sometimes available through cities and states for the purposes of urban redevelopment, in blighted neighbor hoods or to increase employment.

Money for starting a business can be found in a number of places and should be one of the first tasks an entrepreneur should complete.

Author: Dee Power
Article Source: EzineArticles.com
Provided by: Duty on LCD/Plasma TV

Therefore, you should have dueling spreadsheets; that is to say the spreadsheets, which take your best guess and double the time, double the expenses to compete with your optimistic approach. You should be able to present both of these to your Angel Investor; who chances are is a retired business person with a little bit of financial savvy.

This will show your Angel Investor that you indeed are a rational thinker and concerned about the money as well as the truth. If the Angel Investor cannot trust you your chances of being funded are nil. An angel investor is betting on the jockey not only the horse. As an entrepreneur you must be honest with yourself as well as your financial partner.

They want to make sure you believe in what you are doing and that you also have risked your own capital, time and energies into the new business. Angel investors want you to succeed and often they also like to give their input and if you end up taking their money for your startup, the need to realize that their input needs to be taken seriously.

Angel Investors are typically much better investors for a long-term business plan that Venture Capitalists, although they do not come usually with the incredible network to help you succeed. Venture Capitalists are more interested in themselves and making money on their investment then what you get out of it or the future of the business with you in it. An angel investor is interested in you, the future of the business and the possibility of making a whole lot of money on their investment. Please consider all this when presenting your business plan to an Angel Investor.

Author: Lance Winslow
Article Source: EzineArticles.com
Provided by: Programmable Pressure Cooker

Before the meeting

One of the first things that entrepreneurs should bear in mind is that even before an angel investor agrees to meet with him or her, the angel investor probably already has an idea of who he or she is. This is because of the fact that angel investors make it a point to “screen” who they meet with, and, as much as possible, they want to be introduced to entrepreneurs by a trusted friend or relative so that they would have a “reference.” This is because they want to meet with entrepreneurs whom they can have confidence in and trust.

If an angel investor is a family friend or was introduced by a friend or a relative, it would be good to hold a “pre-negotiation meeting” before the big meeting by inviting the investor to gatherings or parties. This is because doing so can allow the entrepreneur and the investor to get to know each other better before the meeting, which can also serve as a good opportunity to make a good first impression.

During the meeting

During the big meeting, an entrepreneur can build on the first impression that he has made by coming to the meeting prepared to effectively present his business concept and to answer any questions that the investor may have. To be able to do so, he or she must prepare a good business plan and bring some very important tools like a calculator, which can help him assess his business needs given the different options he would be presented with during the meeting. In case the investor agrees to invest, it would be a good idea to draw up a letter of intent. However, if the investor is a friend or a close family friend, a simple verbal agreement and a handshake would suffice before the papers are prepared.

To help relieve some of the anxiety that an entrepreneur goes through in looking for an angel investor, there are a number of ways by which he or she can make the meeting with an investor more pleasant. Some of these include holding a “pre-negotiation” meeting and preparing well for the meeting in order to leave a good impression with an investor and increase the chances of signing an investment deal.

Author: Eric Morris
Article Source: EzineArticles.com
Provided by: Canada duty rates

It’s important to realize we are talking about a process, not a single act of writing a plan and submitting it. The decision to finance or not finance can occur at any point in the process. So understanding the process can make the difference between success or failure.

Your objective is to create sufficient interest in your business that the investor will consider your plan viable and want to meet with you. The business plan alone won’t get you the money.

In general, venture capitalists are reluctant to fund start-ups that have no financial history. After a company has been in the market for three or more years, they have a record of success or failure in the marketing of their product or service. At that point, the venture capitalist can learn enough about the company and its product or service to evaluate the degree of risk.

When you’re looking for seed money to start a business, the most likely source, other than friends or relatives, is the angel investor. They are ready to invest with limited or no business history, but the amounts of money are usually smaller than what the venture capitalist is willing to invest. If you decide to seek out an Angel, you can go to the Internet and post information about your company on GoBig.com. Angel investors visit the site often.

But, there is an exception. When a company comes up with a product or service that is truly a breakthrough in design or technology and stands alone in the marketplace, investors, with checkbooks in hand and minimal concern for their business history, are ready to deal.

When the company is ready to go to the market for capital, the need for a business plan comes front and center. While there is no shortage of Internet and professional sources of information on the recommended outline for a business plan, the important thing is to have the information the investor wants in creditable form. While some entrepreneurs have written their own business plans, if the money involved is substantial, hiring a consultant to write the plan seems to be the preferred course. Depending on the size of company and the complexity of the business, costs for the plan can run from $4,000 to $35,000 or more.

While there are many important information needs that must be provided in a business plan, there are four questions that are a good place to start:
1. Why does the market need this product or service?
2. How big is the market and what will your share be?
3. What’s your competitive edge; how will you protect your intellectual property or technology?
4. How much money do you need and how will you spend it?

All business plans should have an Executive Summary up front to summarize the most important information/data in the plan. It must be very well written because investors are usually swamped with business plan submissions so they read the Executive Summary first and if it doesn’t capture their interest , the plan will probably go into the recycling bin.

Among the reasons business plans fail, three are the most common: 1) the data and or information presented is exaggerated or unrealistic. Keep in mind, most venture capitalists work in firms that often have professionals on their payroll who know the markets they target very well and can quickly spot misleading or inaccurate information.

2) You don’t want to minimize or omit your plan’s weaknesses. No plan is perfect and the investor expects to see a problem or two that might threaten the accomplishment of your goals. The key is to recognize the problem and then tell how you plan to deal with it. 3) minimize or eliminate opinions and present sourced data and professional or expert commentary on the market situation.

Although there are many business plan structures, I use this one:
0.1 Background
1.0 Executive Summary
2.0 Financial Plan
3.0 Company profile
4.0 Products and services
5.0 Manufacturing
6.0 Market Analysis
7.0 Market Plan
8.0 Contingency plan
9.0 Addendums

When your business plan is in hand, you may opt to contact your banker before considering a venture capitalist since the banker is primarily interested in interest income while the venture capitalist focuses on equity in the enterprise. Entrepreneurs often make the mistake of contacting only one or two banks and if that is unsuccessful, they give up and go looking for a venture capitalist.

That’s a mistake. Banks, like other businesses , target the markets they want to pursue. So if you talk to a bank about giving you a loan for your software company, the bank may not be interested in that market. However, other banks may be looking for software opportunities. The rejection may not have anything to do with you or your plan. The point is, contact five or six banks to give yourself better odds for success.

When you finally meet with the investor, he may tell you to redo part or all of the plan and suggest you format it his way. No need to be alarmed. Every investor has a way they like to have information presented and if they do want you to revise the plan, that’s actually a favorable reaction because you know he’s interested.

Now that you have met the investor, she will have answered four basic questions about you in her mind… Does he:
1. know this business and the market he wants enter?
2. have good business skills
3. have good people working for him?
4. really have commitment to his business?

If you pass that test, chances are you are about to enter a serious negotiation for money.

On average, approximately four to six months will have passed from the time you start the business plan process until you get money from the investor. Don’t forget, this is a process and you can succeed or fail anywhere along this timeline.

Author: John Riley II
Article Source: EzineArticles.com
Provided by: Digital Camera Times

Days later you waited patiently by the phone for a follow-up call, but the phone didn’t ring. You checked your e-mail, your instant messenger, and your text messages – nothing. The days soon turned into weeks and somehow you never heard a peep from those highly interested private angel investors.

What went wrong?

The short answer is that nothing went wrong – that’s the way private angel investors work. You see, private angel investors speak a very different language that most entrepreneurs have a hard time translating. They tell entrepreneurs that they are excited about a business opportunity which entrepreneurs of course take to mean they are ready to invest.

What they really mean is that they have no interest in investing in your company, but they want to leave the relationship on a positive note in case they ever change their mind. It’s like going on a date in high school with someone and not officially telling them you’re not interested – just in case one day they turn into Brad Pitt or Angelina Jolie.

Why Private Angel Investors Can’t Say “NO” Directly

The truth is that private angel investors can’t afford to say “no” to any opportunity in a direct manner. Most opportunities that pass through their door might sound terrible today, but tomorrow they could be the next MySpace or Google. Smart private angel investors know that there’s no value in ruining a relationship with an entrepreneur just because the deal doesn’t make sense today.

This is of course completely maddening to the entrepreneur. In life we’re used to hearing “no” when someone means “no”. To make matters worse, entrepreneurs are so excited to get their deals funded that they often perceive anything that isn’t a “heck no” to mean “yes.”

The Art of the “LONG NO”

Private angel investors have made what I call the “long no” into an art form. They’ve found dozens of ways to avoid saying “no” while meaning “no way”. The result is a long, roundabout way to tell you “no” without actually saying it. To help you understand this process a little bit more, let me give you some examples of what the “long no” sounds like.

The “long no” often involves some iteration of the phrase “interesting.” You’ll hear something like “sounds interesting” or “this could be real interesting” which of course sounds like a positive response. In reality, it’s the equivalent of describing your not-so-attractive date as having “a really good personality.” You don’t want to offend them, but you don’t want to tell them what you really think either.

Although it may sound counter-intuitive, you don’t want to be “interesting.” You want to be invested in, which means you need to get as quickly past “sounds interesting” as possible and get right on to “we really want to get this deal done today.”

You’ll also get a fair amount of “let us think about it” or “let us get back to you.” These are also telltale signs of the “long no”. Private angel investors run across very few deals that are exciting enough to invest in, so you can imagine the ones that they like get their immediate attention. They didn’t forget to call you back – they are just ignoring you.

Entrepreneurs often think of pitch meetings with private angel investors they way they think about sales meetings with customers. Sales meetings usually involve follow-ups with an eventual close after the decision-maker has had time to decide.

Private angel investors on the other hand are more likely to have made their decision before you even walk out of the room, whether they express it or not. Therefore you can imagine if they are not following back up with you right away, your deal probably isn’t going to get done.

The Answer Is NO Until the Check Clears

Instead of driving yourself crazy listening to private angel investor double-speak and corporate euphemisms, perhaps you should try this piece of advice – assume the answer is “no” until the private angel investor’s check clears.

That may sound overly pessimistic but you’ll probably find after spending enough time with private angel investors that’s it’s a far more pragmatic approach. It’s typical for an entrepreneur to spend 6 – 9 months trying to raise capital (if they raise any at all) and most of this time is spent being misled by private angel investor reactions.

Assume everything an private angel investor says that doesn’t involve writing a check is as good as hearing the word “no”. Even if you are fortunate enough to get into the nitty gritty of a deal where you begin to talk through specific deal terms don’t assume the answer is “yes”. Assume the answer is absolutely “no” until the private angel investor has written the check and handed it to you. And then assume its “no” until it clears.

Author: Will Schroter
Article Source: EzineArticles.com
Provided by: Make PCB Assembly

As a result, entrepreneurs who opt to go into businesses that make medical devices and provide medical related services have found it a little bit easier to get the interest of angel investors. However, this does not mean that anyone who decides to go into these kinds of businesses would get an angel investor to invest just like that, as there are things that entrepreneurs need to do first before they can sign a deal with an angel investor.

What angel investors look for

Apart from a presenting a potentially profitable product or service, businessmen need to prepare a number of things and equip themselves with a number of skills that would increase their chances of landing a deal with an angel investor. Among these skills, one of the most important is competent management skills. In addition to this, an entrepreneur needs a good business plan, which identifies the size of the market, the competitive advantage of his business, and financial forecasts.

On the other hand, there are also a number of things that entrepreneurs should avoid when they are presenting their business concept to an angel investor. Some of these include and having unrealistic valuations for the purpose of making his business more attractive. This is because angel investors are very astute businessmen, and they can tell if you are trying to fool them. If they catch you doing it, you can kiss their investment goodbye.

Recently, angel investors have become very interested in the medical field, which has made it easier for entrepreneurs who are in the field to gain access to capital. However, even if an entrepreneur is in the right type of business, there are still a number of things that an entrepreneur needs to prepare and skills that he has to learn before he can land an investment deal with an angel investor.

Author: Eric Morris
Article Source: EzineArticles.com
Provided by: Cool mobile gadgets