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Posts Tagged ‘Business plan’

Venture Capital: A Transition in Progress?

April 19, 2013 Comments off

vctreeIs the VC risk profile changing?  That thought came to mind after reading commentary by Kent Bernhard Jr.’s article: “Venture capital gets a serious smackdown in the Harvard Business Review”.  Both articles are great reads.  Bernhard comments on an article in the HBR that makes the case that the VC world is shrinking due to, among other things, not providing an adequate return to its investors.  The article contemplates perhaps the industry is destined to failure – or a change of business models?

I agree with Bernhard in that VC’s will stay and continue to fund in a sweet spot that’s needed in the market.  I also think that the incredible growth in Angel Funding and the upcoming potential for crowd funding plays right into a stronger return of the VC industry.  How could it not?  Now, the VC industry can look across a horizon of companies that either make it or not in development and proving a product to the market.  Thus, I believe the VC market will move up a risk-class and place less risky bets on more proven technologies.  Look out Angels on your Series B, C, or D, rounds.  VC’s will be looking to secure a return for their investors and secure their traditional compensation models.  Until they can’t, but that’s a long time from now.

Even though, the disruption of the financial markets have been tough on all of us, I believe this transition has created opportunities never imagined before – and that’s a good thing for everyone.  Look for even more investing models to emerge in the coming months and years.  Nature abhors a vacuum!

Business Plan or Not? – Definately a Plan

December 7, 2012 Comments off
English: Business Plan Presentation at FSG 2009

English: Business Plan Presentation at FSG 2009 (Photo credit: Wikipedia)

The Accelerators section of the Wall Street Journal proposed the question:  Do new businesses or new business segments need a business plan?  The experts weighed in on both sides of the argument.  Many simply said no:  Too tedious, no one reads it, and the business ends up going in a different direction, anyway.  I get that, but if you read into the content of their arguments against a classic business plan, they also state they get some sort of proposal/presentation when they evaluate opportunities.  So, perhaps the details have changed, but the concept remains the same.  In order to be prepared, you need to plan.  If you don’t know your market size, your customer needs and some sort of idea of what they are willing to pay, your business model and some idea of your operating infrastructure, no inside or external investor will be impressed enough to put money in your concept.

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It’s Not About Perfect, It’s About Progress

September 12, 2012 Comments off

I just returned from one of my most enjoyable roles with the PIPELINE Entrepreneurs organization (By the way, they are accepting applications for a new class – see pipelineentrepreneurs.com).  I work with these high growth business owners to help them communicate their business concept – in plain English – and set and achieve milestones for their business. I encourage them to set goals for their team and themselves that make meaningful progress toward their success.

It seems we sometimes reach a conundrum when we work toward these objectives.  Either we are paralyzed by the size of the task in front of us – and therefore can’t break a big goal into small tasks, OR we get overly focused on the details of the goal – attempting to make it a perfect measurable task to move you closer to your objective.  In either case, I am a proponent of simple progress.  Figure out a way to move in the general direction of your objective and refine your goals along the way.  You just don’t know, unless you get started.  Indeed, it is about progress, not perfect.  Let’s get moving!

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