BUSINESS PLAN

It is necessary to remember that a detailed business plan is an important instrument in management of a company and in finding a venture capitalist interested in backing you in your project.

The following structure may give you an idea how to elaborate a business plan:

  • Executive Summary
  • Mission
  • Company
  • Business
  • Product or Service
  • The Market
  • Competition
  • Risk/Opportunity
  • Management Team
  • Capital Requirements
  • Financial Plan(Create your Financial Summaries)

VENTURE CAPITAL FUNDING OPTIONS

Bank loans:
Banks provide funding to small and medium business. Banks require security for their loan and charge interest and do not provide any assistance in terms of experienced management team.

Private Investors:
Private, wealthy individuals generally invest in young start-up companies, sometimes in exchange for equity or in the form of a loan.

Micro-financing:
If a company is looking for very small amounts, micro-financing is a good route to take. Micro-financers are organisations which offer finance quickly without requiring security. Great for immediate funding but interest rates can be extremely high.

Government Funds and export incentives:
National governments offer different incentive programs for entrepreneurs and exporters. Some of these are readily accessible but the paperwork could take a lot of time.

Incubators:
An incubator is a facility from which various support services are provided to small start-up companies at special rates. The support services usually include physical infrastructure such as bandwidth and office space, but can also include mentoring or referral services.

PRIVATE EQUITY

Private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Investments in private equity most often involves either an investment of capital into an operating company or the acquisition of an operating company. Capital for private equity is raised primarily from institutional investors.

There is a wide array of types and styles of private equity and the term private equity has different connotations in different countries.

Among the most common investment strategies in private equity include:

(source: Wikipedia)