SUCCESS FORMULAS (Part 45)

Sub-Topic: WHERE'S THE BREAD?

I came across a Wendy's fast-food commercial called "Where's the Beef?" on YouTube recently. I started thinking about bootstrapping entrepreneurs, who may believe that "there's no money out there" during this turbulent economic downturn. There is money out there! You want a potential investor to "show you the bread?
Get a plan first. Although many sources of capital never read business plans and those that do seldom read them cover to cover. However, this does not let entrepreneurs off the hook. In fact, the first request entrepreneurs will hear is, "Show me your business plan." When you're an entrepreneur seeking to market your business, it's not enough to have a great idea. You need to have a plan to back it up. And not just any plan will do; in most cases, you need a solid, well-developed business plan before you can raise your first nickel.
Plans may come in all shapes and sizes, but when you get to the meat of them, they all include the same basic parts:
👉a description of the company and its business;
👉a marketing analysis;
👉marketing operations;
👉key personnel;
👉the financial analysis and
👉projections; and
👉the executive summary.
According to some sources of capital who claim they read plans all the time, the following are the points that will make or break a plan.

While money play a big role in a deal so too does personal chemistry between an investor and an entrepreneur. Unlike a banker, who will not break lending protocol no matter their personal feelings, an angel investor can be convinced to do almost any deal, if they develop a bond with an entrepreneur. Crucial to forming the bond that is so vital to closing the deal is to understand the basic personality types of investors. Although private investors come in many different shades, there are four basic types:
👉Corporate Angels;
👉Entrepreneurial Angels;
👉Enthusiastic Angels and
👉Professional Angels.

1. Corporate Types: Corporate angels tend to make a single investment. They also tend to invest all their risk capital at once and get jumpy when the hat is again passed their way.

2. Entrepreneurial Angels: The most prevalent of the investors, these angels frequently own and operate highly successful businesses of their own. They tend to invest more capital because they have another source of income, and sometimes significant wealth from advancing their business or a buyout. Entrepreneurial angels hardly ever take on any kind of management duties; rather they take a seat on the board of directors. However, because of their agenda, when the synergy or the potential they initially perceived disappears, often times so do they.

3. The Enthusiasts Angel: Unlike the calculating entrepreneurial angels, enthusiast angels simply enjoy being involved in deals. Most are over 65 years old and independently wealthy from success in a business they started and have abbreviated work schedules. Investing to them is a hobby, so they typically want no role in management or on the board. However, because they tend to invest in so many companies, the size of their investment is generally small-anywhere from $10,000 to $50,000. The upshot is that enthusiasts have a hard time saying "no" and will frequently bring their friends in on the deal.

4. The Professionals Angel: The occupation of the investor is how these angels get their name. They are doctors, lawyers, and in some instances, accountants. They like to invest in companies that offer products or services compatible with their own. Professional angels will invest in several companies at once, with capital contributions ranging from $25,000 to $100,000. Although they are good for initial investments, they are unlikely to make any follow-on contributions. However, they operate within loosely-defined but clear networks and tend to have more comfort investing alongside their peers than any other category of investor. They can also add value by bringing to bear legal accounting or financial expertise for which the company would otherwise have to shell out hefty fees. Whatever angel personality best suits your needs; don't categorically rule out the others. Remember, you want to know "where's the bread?"
##SAM#WHATSAPPGROUPTEACHING#