Sunday, December 22, 2013

Venture Capital Cycle

A company was formed after a man was able to create something. Take the example of Henry Ford who is able to create the first car to use the machine instead of it being towed by horse.This classic example is just one of many. The only difference is that during that time, Henry has funds available so no need to borrow from bank.

But now, those who want to start something had to borrow money. A student wishing to pursue further study of the project should be awarded a grant from the school. In the world of business, entrepreneurs can go to the bank or get someone to work as an investor and as a partnership partner.

This better known as a venture capitalist. As an entrepreneur looking for a simple cycle prepare the details and then submit a proposal to investors. If after a round of meetings, all the sounds and the two sides agreed on the details, and then the funds are released and the business cycle can begin.

But venture capital is not only for beginners. The same thing can be done to help expand an existing business. The details are grouped together by people in the hope that creditors approve the request.The time it takes to do the research to be true when businesses take months. This is because employers must do your research first. This means checking the feasibility given the location and market, cost of machinery, sales projections and of course the return of investment.

When is ready, the proposal is sent out to a list of potential partners . Some people will respond quickly while there are those who do not. This is because the other measures provided by other entrepreneurs.There meeting that normally happens when the document was delivered very reliable. This will give investors an idea of ​​who the entrepreneur. Some investors feel good vibe and take it from there while they're not going to deny proposal.

An effective way to make a good impression would be to answer any questions, instead of no help at all. It would not be long after that to hear a response from investor.The answer is either yes or no employer can make fun or try harder.

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