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Where Will Your
Business be in Five Years? |
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
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415-898-7879 |
Toll Free |
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866-CFO-PLUS or
866-236-7587 |
Fax |
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415-456-9382 |
Email |
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thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
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www.cfoplus.net
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Most everyone working in any type of business hardly has
time to set goals and objectives, let alone do any short-term daily planning.
Walking into the office with a preset list of daily “to-do” items will surely
go to the bottom of the in-box within a matter of minutes. And, in the
long-term, matching quantifiable outcomes with goals and objectives just isn’t
part of reality. Or is it?
An increasingly demanding marketplace coupled with the need
to get more done prevents some from planning, setting business goals and
measuring outcome. Yet other business owners make time for this critical
process. These entrepreneurs have experienced, firsthand, how applied business
projections can turn dreams into currency.
The need to plan for the future of your business dates back
to the Stone Age. As elementary as it may seem, cave men who hunted for food
found they could not transport much on their backs or in their hands, so they
planned for the future by inventing the wheel. Once a vehicle to carry food was
available, the goal was achieved, and life was much sweeter.
Our business environment isn’t much different. We realize an
end result through a goal- and objective-setting process. For example, your
goal might be to increase business in 2002 by 10 percent. How are you going to
get there? What’s keeping you from reaching that mark now? Asking the right
questions generates the critical information you need to turn action into
results. Even more important is accessing the data needed to set your goals. If
you’ve never attempted this kind of planning before, you aren’t alone. Properly
executed, this type of planning can significantly impact a business, but most
entrepreneurs aren’t sure what to focus on, so they focus on what is urgent.
Often, though, what is urgent is not a priority in the lifespan of your
business.
It’s much easier to begin the process by thinking of the
task in small, easily reachable segments. Following a streamlined, eight-step
approach to planning keeps you focused. Even though you may already have taken
on some of these points and begun the planning process, revisit them for a
fresh perspective.
1. Make sure you are looking at the right numbers. If
you are looking at financial statements, you may be looking at what we call
lagging indicators. These numbers tell you what has already passed. What
transforms action into measurable results is setting goals based on leading
indicators – specific measures that give you a real-time snapshot of areas
within your business. This gives you the power to make changes now rather than
later. Often, what seems to be the area of concern is actually a symptomatic
sign of another area that needs attention.
2. Assess the company’s strengths and weaknesses. Even
the most advanced, revenue-generating businesses can benefit from assessing
strengths and weaknesses. Gather your teams and create! First, you’ll quickly
realize you have as many weaknesses as you have strengths. Second, if the group
is given creative freedom without pressures of being watched by the boss,
you’ll receive honest feedback.
3. Conduct a thorough market segment analysis. Who
are you trying to reach? The same customer or client you had just a few years
ago may have morphed into someone completely different. Perhaps you’re going
after an audience that no longer has a need for your services. Consider
generational differences (Gen-X, Baby Boomers), demographics (age, race,
gender) and any other indicators that match your company’s mission.
4. Analyze competitors. You can’t begin to make any
headway without determining your competition. The answers “we don’t have any”
and “we are the only ones who provide this niche of services” isn’t viable.
Everyone has competitors; yet, they may not be apparent at first glance. If you
can’t come up with a short list, talk to your customers or clients and ask
their opinions. Chances are they’ll tell you who the competition is, but more
importantly, they’ll tell you why you’re different than the competition.
5. Create company goals and objectives. This task may
very well be the most fun, but again, be careful not to be too aggressive with
your goals and objectives. It’s far better to concentrate on two to three
specific items that can be accomplished, rather than a long, complicated list that
sets the company up for failure. Of course, setting simple goals that don’t
challenge your team won’t yield the results you truly desire.
6. Formulate strategic options and select the appropriate
strategies. What are your options on reaching your goals and objectives?
How are you going to organize your teams to accomplish your end result? Weigh
factors like budget, people and staff time when planning your strategies. If
you plan for 10 percent growth, what are your options – do you have the staff,
money and time to reach this goal?
7. Translate strategic plans into action plans. This
is the most creative step in the entire process because of the progression
involved in coming up with action plans. The most productive meetings with the
best outcomes come from dynamic, group sessions in which everyone offers their
suggestions. Most companies are amazed at the creative knowledge inherent
within employees during this stage.
8. Establish accurate controls. As in any business,
controlling expenses and resources is paramount to any process. You can’t sell
the farm if the farm isn’t for sale! Be sure to outline during the action plan
stage just exactly how much the company is willing to commit to the effort, and
attempt to stick to that whenever possible. Of course, there will be some
deviation, but more likely than not, a well-defined set of controls will go a
long way to ensuring goals are met in a timely, cost-effective and efficient
fashion.
In addition to these eight steps, companies must evaluate
the effectiveness of its plans throughout the process. Assessments must be
reviewed and thoroughly analyzed to determine what’s working and what needs to
be changed. You won’t want to wait a whole year, for example, to rethink your
goals. Plan a mid-year review.
In five years, where do you want to be? What does your
company look like? Put the incremental plan in place that will get you there
and stick with it until you reach your destination. Business performance is key
to realizing company objectives. Give us a call so we can help put you on the
fast track toward reaching your goals. |
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Building a Better Business Dashboard |
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
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415-898-7879 |
Toll Free |
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866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
: |
www.cfoplus.net
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When Jeff Gordon steps behind the wheel of his high
performance race car, do you think he knows first-hand how much oil is in the
engine or how much fuel is in the tank or even how many pounds of pressure the
tires are under? Of course he doesn’t. There isn’t time between breaks for him
to follow his crew and check to ensure they’ve done their jobs. Nor should he,
he’s hired the best, put the latest technology on the road, and knows from
experience what to expect. He has the gut instinct that has delivered him many
championships and a dashboard that offers instant feedback of what’s happening
“under the hood.”
As an entrepreneur, your gut instinct can help you avoid
pitfalls, but when it comes to operating your business and attaining maximum
profitability, you most likely rely on a “dashboard” that provides information
on how well your business “vehicle” is performing.
A car has a temperature gauge, a fuel indicator; even a
rotation per minute (RPM) readout that measures how “hard” the engine is
working. Your business dashboard is very similar. Daily customer calls, sales
and other performance measures offer critical feedback at a glance. However,
unlike a car, a business dashboard must be customized for your business model.
Are you operating
like a Model T or a Ferrari?
Many companies manage in a blind fog, relying on financial
statements that are 30-90 days old to make important business decisions. In
short, they are relying on a dashboard that belongs in a company that operated
20 years ago. These “Model T” dashboards from yesteryear offer little more than
historical recordkeeping capabilities. Today, we call these performance
measurements lagging indicators because they lag in time from when data
is collected to when it is actually available for analysis. Imagine what Mario
would say if he had to wait until after he had lost the race, to see
that there was a problem with the car that could/should have been fixed in an
earlier pit stop!
Just like with cars, business performance demands have
increased too. Today, technology creates both the opportunity and competitive
environment that demands that you operate with a better dashboard. The
model needed today is more like a Ferrari – an optimum, high-performance
machine that offers maximum output. An effective dashboard can free you of
day-to-day operational duties so you can focus on managing, and possibly
growing, your business. What’s even more exciting is that there’s now a proven
way for you to know at a glance how well your business is performing
and what areas need attention. This state-of-the-art tool utilizes leading
indicators. These feedback mechanisms provide real-time information about
all areas of your company’s performance so you can “shift on the fly” and make
needed strategic adjustments to your business strategy.
What You Can Measure, You Can Manage
So how do you build a better dashboard? It boils down to
looking at the areas within your business that can be measured and, as a result
of proper measurement, managed more effectively. Measurement and Feedback
systems are the tools for the 21st century entrepreneur. These tools
build your company’s customized dashboard. Businesses are typically organized
into four to six performance areas, which include:
- Finance:
All activities relating to the financial aspects of the business including
accounts receivable, accounts payable, payroll, reporting, etc.
- Operations:
All activities relating to the development, production and delivery of a
product or service including manufacturing processes, inventory
management, quality control, order processing, service delivery, shipping
and receiving, etc.
- Customers:
All activities relating to the acquisition and retention of customers
including marketing, sales, customer service, etc.
- People:
All activities relating to hiring, training, managing, growing and
developing people.
Once you identify your business’s performance areas,
you then establish critical success factors (CSF) related to each
area. This is the foundation of your feedback system. CSFs are specific goals
that are designed to overcome weaknesses, exploit opportunities and/or
stimulate performance in a given area. The goals are strategic in nature and
fit within your company’s broader vision, mission and core values.
After you have pinpointed performance areas and
developed goals (critical success factors) for these areas, then it’s time to
develop a way to measure how well your team is doing in each area. Your
measurement tool is called a Key Performance Indicator (KPI). KPIs
measure outcomes and often are expressed in ratios or indexes made up from
multiple activity measures. KPIs provide feedback to the team and managers
about how they are performing in reference to the CSFs established in their
given performance area. In essence, your team will have a way to look at their
own personal business dashboard. They can “add more fuel” if they see that they
are lagging in an area. Or, they might see how they can make an adjustment that
affects the whole process and improves overall productivity.
Your Goals, Your Team’s Goals
You’ve heard the line, “Build it and they will come,” right?
Well, this is ultimately true about your business dashboard. You have a winning
formula when you build a dashboard that your employees can understand how it
hits your bottom line as well as their bottom line. A business dashboard
will make it easy for them to see how their efforts affect the company’s
performance. Once your team knows what the company’s overall goals are, they
can then be told what is expected of them and what part they play in realizing
those goals. By implementing a performance measurement system, you can abide by
the adage, “What is inspected is respected.” You will find that goals come to
life when there is a measurement system in place. Ultimately, people perform
best when the “rules of play” are explicit, and the scoring method is clear.
Your
business dashboard allows you to effectively manage your company’s performance
and to share this performance with your employees so that your goals become their
goals. Building a better dashboard
is key to increased profitability and a smooth running operation.
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Develop a Marketing Plan That Works |
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
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www.cfoplus.net
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Let the Good Times Roll
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Does your company have a
marketing plan and do you know where it is? If your marketing plan is sitting
on a shelf, if you aren’t getting the new business results you want, or if you
have a plan and don’t know what to do with it – read on. A well-developed
marketing plan can help the “good times roll” in these not-so-good times.
What a Marketing Plan Is
A well-defined marketing plan
is your company’s road map to results. It will guide you from your current
situation to your target destination. It should be a document that is used and
revised as needed (no one says you have to live and die by what you decide to
do today). You can develop an effective marketing plan by following a
tried-and-true series of steps.
What a Marketing Plan Is Not
A marketing plan isn’t some
fancy, intelligently written (although it should be clearly communicated)
100-page document that “wows” people. It isn’t a document that will take months
to create, and isn’t going to take the latest and greatest desktop publishing
software to create. A marketing plan that works isn’t something that only the
marketing director or VP understands.
Where are you now?
- Define who you are as a company.
- What is your company’s
business philosophy or approach to business?
- What are your company’s
competitive strengths and weaknesses?
- What differentiates you
from your competitors? Knowing your key differentiators is integral to
developing your marketing message.
Use these guidelines to write
several paragraphs that summarize where your business is now. Be sure to
determine if this is how “outsiders” see your company. Ask a few vendors,
customers or business referral sources to give objective feedback on your
company’s reputation. It’s important to know if you think you are the “tiger”
of your industry and your target market sees you as a “sheep.”
Where do you want to go?
- What do you want to
accomplish? (Increase new lines of business? Expand existing business? Both?)
- Do you have name
recognition in your market? If not, do you want to build that?
- Do you know to whom you
want to market? Do you want to target a new market?
As Microsoft says, “Where do
you want to go today?” A fun part of the marketing plan process is opening your
mind to limitless possibilities. Working in
your business instead of on your
business works well for tunnel vision – not marketing. Thinking about the
future will get you back in touch with what you “dreamed” your company could be
many years ago. Or, it may open up new dreams.
As you proceed through this
phase of plan development, outline your goals and be very specific. To hit a
target, you need to know exactly what you are aiming at. It’s nice to say you
want to be the most well-known company in your city, but a more specific goal
could be for you to be the most well-known company to your target market and
increase sales by x percent in the coming year. And while you should
dream big, it’s good to be realistic – the best marketing plan in the world
won’t double new business in one year. Finally, once you have your goals on
paper, it’s time to prioritize them. Put them in order starting with those with
the greatest importance.
Research, Research, Research
Research may not be your cup
o’ tea, but it’s critical to the success of your marketing plan. Once you have
your targets on paper, you can focus your research to find out if another
company is already the market leader in that arena, or test your company
differentiation against other local offerings. You may decide that you would
rather tackle another area in which competitors don’t already have such a
strong foothold.
You
also need to understand your target. What do they want? What do they value? A
good place to start is American Demographics Magazine (www.americandemographics.com).
The magazine’s Web site offers articles on various consumer and business market
segments. Associations and publications catering to your target market can be
useful, too. Web sites for those sources also are readily available. It never
hurts to enlist the assistance of a pro. Often, the investment more than pays
for itself in time savings.
Profile your target market
with the information you gather. Include the percentage of people in your town
that would fall into your “target” market. What is your target’s need for the
services you offer? Do they appreciate the services you offer? Where do they
currently go to buy these services? How easy/difficult will it be to lure them
over to your company? The more specific your profiles are, the more they will
help you hit your target.
Hitting Your Target
This is the most important
part of your marketing plan! For each goal, you need to develop a strategy that
incorporates your key messages and outlines the tactics you need to accomplish
to reach your goal.
There are many tools for you
to use to convey your message, including:
- Newspaper
- TV
- Magazines
- Direct Marketing
- Campaigns
- Newsletters
- Public Relations –
events, speaking engagements, sponsorships
- Business Alliances
For each goal, write your
strategy with the key message and the tactics you will take to realize your
goal.
Here’s a sample:
Strategy: Position Bob’s Widget Company as the unique
provider of low-priced, high-quality widgets in Any City, USA.
Key Messages: Bob’s Widget Company offers low-priced,
high-quality widgets and is committed to serving the citizens of Any City, USA.
Tactics: Propose
a story to the local business journal that shows how Any City, USA’s citizens
now have access to the most affordable widgets in America. Attend trade shows
where you can meet retailers who serve your target market. If Bob wanted to
take his widgets straight to his target market, he also might consider
developing a direct mail campaign.
As you outline each goal,
make sure you keep asking yourself, “Why should I do this?” Also, be realistic.
If you don’t have a lot of money to pour into marketing, it doesn’t make sense
to list tactics that require a large budget. Marketing doesn’t have to cost a
lot of money if you are willing to invest time and creativity to achieve your
objectives.
Once you have all your goals
broken down into smaller sub-goals, set a deadline for each sub-goal and a
timeline for the larger goal. You want your marketing plan to be a win for you
– set practical time deadlines.
Let’s GO!
Guess what? That’s it! You now have your marketing “map,” a
well-developed “to do” list that was researched and is highly focused to get
the results you want. It is based on facts, not hunches, and it will take you
from point A to point B. More than that, it will continue to move you closer to
meeting your company goals.
As you complete each
goal/sub-goal, be sure to document the results you realized. Use this analysis
to tweak and improve your marketing process. We think you will be amazed at
what you can do in just three months if you take your marketing effort one goal
at a time.
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D-I-S-A-S-T-E-R Spells Trouble if You
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
|
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
: |
www.cfoplus.net
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Don’t Plan Ahead
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As every Boy or Girl Scout knows, the key to survival is to
be prepared! When it comes to disaster planning for a business, there are many
items to consider. What does your company need to remain operational during a
disaster? Should your insurance cover lost wages, and should it cover lost
business revenue? How will you protect software and hardware? Is your business
located in hurricane country or an area that may experience another kind of
natural disaster? Disaster planning not only should be specific to your region,
but also should consider man-made disasters, including fire, flood or, in these
technological times, electronic terrorism.
When you look at disaster planning, you may feel like David
approaching Goliath. The key is to take it step-by-step, and to do something rather than nothing. In the
wake of September 11, many companies now feel more vulnerable than ever. Still,
no matter where you are located, natural disasters and other devastation can
strike anytime.
Thankfully, you have the luxury of time to make preparations
… and time is what disaster planning is all about. It takes time to think
through the scenarios and to focus on an actual, viable plan rather than
something that just looks good in the company disaster manual. If you think
developing this plan sounds hard, it isn’t nearly as hard as developing one
during a crisis!
Here are some areas to consider
as you develop your contingency or disaster plan:
What is your escape route? Just like you did in elementary school,
hold regular fire or evacuation drills and inform all employees of the
company’s escape route(s). It’s a good idea to have more than one route. Plan
who will be the last one(s) out, along with alternates. If you have lease
space, you may be able to ask the property management company to hold regular
drills for your company. If this option isn’t available, do it yourself by
holding impromptu drills. In addition, make plans for situations where
employees may be trapped within your company building.
IT and phone back-up plans. Ever think about how you would conduct
business without phones, computers or the Internet? In a disaster, these
commonplace work tools may be out of reach. Not only do you want to make
provisions for the information technology required to keep your business up and
running, you’ll want to ensure your key suppliers also have back-up plans if any
suppliers directly impact a portion of your business. Redundancy seems to be
the name of the game for phones and IT. Secure two phone carriers rather than
one, since cell phones can get bogged down during more widespread disasters. If
you have a high-speed Internet connection, consider having a direct-dial back
up. Finally, put a plan to paper that will enable you to access outside
equipment, whether it is the company’s property or the property of company
employees (you will want to check with your insurance carrier to assess the
risks involved with this type of arrangement).
Secure valuable data. We know of many well-intentioned business
owners who diligently make backups each night, label and file these valuable
disks, and promptly store them in a place that does not protect the data from
fire or floods. Today, we have many solutions available. You can choose to
purchase a more secure data container, such as a fire-proof safe. Or, you may
want to store the data offsite. Perhaps the easiest way to protect data offsite
is to upload it to the Web to a secure server. Of course, you’ll need to ask
the company you choose what contingency plans it has in place to access your
data, should that company experience a disaster. Ensure your rights are
protected through Service Level Agreements.
Where do you go from here? What happens when there’s no “business”
to return to? Finding a temporary location ahead of time can keep you out of a
disaster bind. If you lease your office space, some property management
companies can offer offsite locations for use, so ask about putting a disaster
provision in your lease. If your business permits, you may want to look at
developing a plan that enables employees to work from home, if at all possible.
If your business relies heavily on equipment or a special facility, investigate
business interruption insurance options that pay you and your employees in the
event something happens. If you have highly skilled employees that may seek
employment elsewhere, opting for a higher premium to cover lost wages may be a
good choice.
Disaster Resources
Federal Emergency Management
Agency. Visit http://www.fema.gov/library/bizindst.pdf to view
FEMA’s Emergency Management Guide for
Business & Industry. The agency offers quite a bit of information about
disaster preparedness.
American Red Cross. Stop by http://www.redcross.org
to find many supply checklists for common disasters and crisis situations,
including rolling black outs. This also is a good source of information for
your personal and family disaster planning.
As your business performance advisor, we are here to help you make the
most of every area of your business. We can help you develop your company’s
disaster plan and answer questions as you go through this process. Give us a
call to start building your contingency plan today.
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Want Capital? The Basics You Must Know |
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Our mission is to provide information and strategies to
business owners and managers for improvement in the
effectiveness of its business management so that key
objectives can be realized.
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Ted Hofmann - Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
Jim Chamberlain - Senior Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll Free |
: |
866-CFO-PLUS or
866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
jchamberlain@cfoplus.net
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Website |
: |
www.cfoplus.net
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When 14-year old Ashley Power
unleashed her views on life on her Web site, “Goosehead,” who knew she would be
a media sensation in a matter of months? Toiling away, night after night, the
teen built what is now one of the hottest young adult sites on the Web with
little money and no staff.
However, when the word got
out, it soon was obvious to the teen’s parents it was time to invest and take
the little Web site into the big time – and who knows, the same process may
hold true for your own firm or company site. What if you don’t have a nest egg
to fuel your entrepreneurial effort?
Basically, there are two
types of capital: debt and equity. If you go the debt route, you secure a loan,
maintain total control of your company, and must repay the loan plus interest
and fees. Going the equity route provides capital and investors who trade an
investment for a share of your company and, they hope, the associated profits
or proceeds.
If your company requires a modest amount of capital, you may
consider going the debt route by securing a bank loan, a Small Business
Administration loan, personal loans from friends, family or partner (silent or
not) that invest a large portion of the money required to get you where you
want to go. Commercial finance companies also can provide financing. If,
however, you are in an industry where a considerable amount of capital is
required (such as high tech), you are better off going the equity capital
route.
No matter who you make your pitch to, you will need:
- An Executive Summary – 3 to 5 pages
- A Business Plan – 50 pages maximum
- Due Diligence Material, including market studies, research
papers, etc.
- Company Business Valuations and projections of post-investment
values
- A strong, short presentation you can make in person
Venture capitalists (VCs) usually enter the game at around
$250,000. Below that, you may want to look at angel investors: wealthy people
who invest in a similar manner as VCs, but do it independently rather than with
a firm. They are called "angels" because they usually are more
interested in acting as a mentor rather than controlling your company.
VCs and angel investors look at your business plan and, if
everything looks good, they will invest in your company. To ensure you look
“good,” be sure you supply the answers to these questions in your materials:
- How much can the investor expect to make? What is the
return on investment?
- How much could the investor lose? What collateral is
available?
- How do you know your company will make money? Do you have
third party documentation that can support your claims?
- Who is running the company? Why should they trust you and
your team know what you are doing?
- Who’s going to buy your product or service? How will you
market to your target? Does your plan
have marketable validity?
- When
will the investor be paid back? What is
the deal structure and terms?
Seeking venture capital isn’t for the faint of heart. VCs
typically receive about 100 plans per week and invest in about 5-10 businesses per
year. But, you never know when your presentation or business plan may land in
another investor’s hands as a result of your VC actions. Who you know is very
important when seeking venture capital. Networking takes on a whole new role as
you try to meet potential investors. Ask your business advisor, attorney,
banker and other colleagues who they know in the VC world.
Your action list for securing capital should look something
like this:
- Develop documents
- Create presentations – one short (5-10 minutes) and one long
(15-20 minutes)
- Hone your presentation skills – try Toastmasters or personal
coaching
- Rehearse your presentation – your family and friends are a
good place to start
- Make
your list of potential investors
- Talk to colleagues and add to your list of possible investors
- Remain focused and enthusiastic throughout the process –
energy sells
- Do your homework and avoid risky investors
- Remember to sell your vision and the investment, not your
service or product – What’s in it for the investor?
- Each week, make a
to-do list and follow it until you secure the capital you desire
No matter what stage of growth your company is in, financing
is available to those who are patient and persistent. Let us know if we can
help you as you attempt to secure capital.
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