What do investors want to see?

Posted By on Jan 18, 2011

If you are like many entrepreneurs, you may have ask yourself the question: “What do investor want to see in my business plan”? To give you a quick layout, PRC has put together a cheat sheet for you. 1) Executive Summary The goal of your executive summary is to stimulate and motivate the investor to learn more. In the executive summary, make sure you: * Hook them on the first page, so they want to keep reading. * Keep it simple, and dive into the details later on. * Be brief. Aim for 2 to 4 pages in length. 2) Company Analysis Here’s where you want to educate the investor about your company’s history and explain why your team is perfect to execute on the business opportunity. In the company analysis section, make sure you: * Provide the essential background on the company. * Show off your track record and prior accomplishments. * Answer the question “Why you?” 3) Industry Analysis The goal of the industry analysis section is to prove that there is a real market for your product or service. * Demonstrate the need – rather than the desire – for your product. * Cite credible sources when describing the size and growth of your market. * Focus on the “relevant” market size. * Each fact and figure should support your prospects for success. * But don’t ignore negative trends. Explain how you’ll overcome them. * Be prepared for due diligence. (Make sure all data is verifiable). 4) Customer Analysis In this section, you want to convey the needs of your customers and show how your company’s products/services satisfy those needs. * Define your customers precisely * Detail their demographics * Identify the needs of these customers * Identify what drives their decision-making PRC...

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Posted By on Nov 9, 2010

According to politicians and government officials, both state and federal, the Small Business Owner is the pride and backbone of the United States. According to the rhetoric, small businesses are creating the most new jobs and provide the engine that drives the US’s economy. Fine words, but– Why is it so difficult for that small business owner to find the capital to start or expand a business, or for real estate investors to buy and rehab property? Interesting question and several debatable answers can be added. Our solution for the aid of  the entrepreneur: Bridge Loan What is a “Bridge Loan?” . A “Bridge Loan” offers: ((1) Short-term capital to ‘Bridge’ the gap to more permanent funding; (2) Lender secured funding with asset-based collateral; (3) Ability to convert to monthly funding to extend loan until more permanent funding can be secured. This is a great option for many entrepreneurs until the larger rounds of funding are complete. PRC...

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Entrepreneurs Stay Encouraged!

Posted By on Aug 5, 2010

Winston Churchill once said, “If you’re going through hell, keep going.” This quote is really applicable to entrepreneurs. Mainly because rarely, if ever, does the process of starting and growing a venture go smoothly. There are often many mis-starts and mistakes, and course correction is nearly always required. The way I see it, the fact that things don’t always go smoothly or work at first is a good thing. It weeds out the weak entrepreneurs, which provide more opportunity for profits and growth for us stronger entrepreneurs. TOUGH TIMES MAKES YOU STRONGER! THINK OF IT AS A WORK OUT. ONCE YOU HAVE COMPLETED THIS INTENSE  ROUND OF FUNDING.(WORK OUT) LOOK HOW MUCH STRONGER YOU WILL BE. AS WITH EVERYTHING, IT IS KEY THAT YOU HAVE THE RIGHT PEOPLE ON YOUR TEAM PUSHING YOU AND ASSISTING YOU IN YOUR EFFORTS. PRC IS A GREAT TEAM TO WORK...

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The Right Aim

Posted By on Jun 11, 2010

Many ventures are faced with the challenging task of raising venture capital. The first part of this process is finding the right venture capital firm (VC). While this may seem simple, it isn’t. There are thousands of venture capital firms in the United States alone, and going after the wrong ones is one of the most common reasons why companies fail to raise the capital they need. When seeking a venture capital firm, there are six key variables to consider: location, sector preference, stage preference, partners, portfolio and assets. Finding the right venture capital firm is absolutely critical to companies seeking venture capital. Success results in the capital required and significant assistance in growing your venture. Conversely, failing to find the right firm often results in raising no capital at all and being unable to grow the venture. And as we all know. “Its not what you know its who you know” PRC has the connections and resources to help your venture obtain...

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Most entrepreneurs have never raised capital. And, like it or not, it’s an entrepreneur’s ability to raise capital, and NOT her business idea or managerial skills, that often determines the success, or lack thereof, of a venture. To make matters worse, raising capital is extremely challenging and complex. The list of questions that entrepreneurs need answered in order to raise money is nearly endless: How long should my business plan be? How do I create a financial model? How do I need to legally structure my company? Who are the right investors? Should I be seeking equity or debt? Or both? How do I find and convince them to invest in my company? What type of stock must I issue investors? How do I negotiate financing terms? Etc., Etc., Etc. Navigating through the capital raising waters is extremely difficult for most entrepreneurs and as a result, most fail to achieve success. This can be very frustrating to an entrepreneur. The first capital raising reality that most entrepreneurs encounter is just how long it takes to raise capital. Simply the process of understanding how to raise capital could take six months to a year, and if you don’t learn how to do it correctly, you’ll burn bridges left and right! Capital raising can be broken down into three steps: The first step is understanding what types of capital might be available to your firm. And there are many, from venture capital to traditional bank loans to customer financing to convertible debt. In fact, there are nearly 40 viable financing options that are accessed every day! Unfortunately, most entrepreneurs go after the wrong option since they aren’t familiar with their options. For example, only about 10% of business plans that are submitted to venture capital firms could possibly warrant venture capital. Once you understand what type(s) of capital is right for your venture, the next step is to develop your business plan. The business plan is not just a strategic document. Rather it is a marketing document that sells your company to investors or lending. In this regard, your plan must be tailored to the stage of your company and the type of investor. For example, if you are seeking an equity investment, the plan should focus on the potential for investors to receive 10 times their money back or more! Conversely, if you are seeking debt capital, your goal is simply to prove that you will easily be able to make all loan payments. PRC...

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Posted By on Feb 9, 2010

You may have heard the phrase “the glass is half full” or “the glass is half empty.” And probably, when we heard it first, we sat and stared for a moment and really thought about it. And possibly, and actually hopefully, it made us become more optimistic. Because good things typically happen to optimists, and I’ve never met a really successful entrepreneur who’s a pessimist. But I learned lately that even a lot of us optimists, actually act pessimistic a lot. Typically this happens when we are posing questions. For example, we may ask, “why don’t our prospects listen to us when we talk about the benefits of our products?” Or “How come some of my employees never seem to put in that extra effort?” Or “Why cant any investor see the value in my venture” These questions are very negative. And because of that, they rarely lead to positive solutions. So, let’s turn these questions around. How about asking, “How could I communicate better to get our prospects to really listen to the benefits of our products?” Or “What could I do to inspire and motivate my employees to work harder?” Or “What can I learn from an investors feedback that is not interested in my venture?” Framing your questions in a more positive light will help you solve them. It will ignite your positive creative energy, and that’s when the entrepreneurial magic happens. So, start turning around your questions and looking for positive solutions to the challenges you are your business are facing. The solutions are there. You just need to make sure you are asking the right questions in order to find them. To Your Success, PRC...

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