Wednesday, October 20

How to Get Your Business Plan Rejected by Venture Capitalists

Extract . . .

“When you are presenting your new or growing business to a venture capitalist firm, the first, and sometimes only, thing that the firm will look at when making a decision about your business is your business plan. If your goal is to be read, you need to avoid these things. They are the best ways to ensure that your business plan ends up in the trash!

First, remember that first impressions are important in the investment business. If the look of your business plan and cover letter do not represent your plan well, then you can be guaranteed that it will end up in the circular file! First, if you are struggling to fund your business, you may be tempted to ask the investor to send your business plan back in a prepaid envelope if they are not interested in what you present.

While this seems like an economical suggestion, it does not sit well in the minds of the investor. You are showing the investor that you are desperate to get capital for your business. So desperate, in fact, that you cannot even afford to draft multiple copies of your business plan for potential investors. Desperation does not lead to success in the mind of the investor.”

Link
http://www.fundingpost.com/investor-presentations/How-to-Get-Your-Business-Plan-Rejected-by-Venture-Capitalists.asp

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