Suppose you ready your product (whether virtual or real), you want a good business model, then we'll talk about how to get first venture.
Financing three steps:
I simply grouped into nine words: do not do it, how do, how to do it.
Let's explain respectively.
Step one, I decided to do it or not (or not financing)
We must first have a clear understanding of the business is a very difficult task.
I am referring to the creation of a serious business, rather than six months after the collapse of the coffee shop will :)
If you have not a clear understanding, it is recommended to read this book about entrepreneurship was hard (Author: Ben Horowitz, Silicon Valley's top investors).
Most business book says is how to do the right thing, do not mess things up, and Ben Horowitz will tell you: When things are messed up, how can you do.
Entrepreneurs with confidence and attitude to financing, it must demonstrate self-confidence.
Step two, decided to do much (to determine the amount of financing)
Assuming you have determined to do, the next is the second step, how much money you are ready.
Simply put, it is to "Expenditure and Revenues", than money that is actually required amount of financing do not set much more. (Of course, aside appropriate redundancy)
Another point is very important, do not set the financing section, give definitive figures.
When the exchange with the VC, do not try to change the amount of financing to lure him.
Step three, decide how to do (financing material)
Well, the first two steps have been identified, it came to the most important step, which financing material preparation.
There are three core materials:
1. Introduction
2, streamlined version of the business plan, later known as the "executive summary"
3, financing presentations (with an executive summary about the same, made in the form of PPT)
We introduce respectively.
Company Profile
About usually 1 to 3 sections devoted to concise, including:
1, a period of self-introduction text (especially if you know or an introduction to an investor when the investor)
2, very direct description of the company's products, team and business
3, summarize, what next step
executive Summary
The executive summary is usually one to three pages in length, introduce your ideas, products, team and business, the same, to be brief, refining, logical and smooth.
In the executive summary, the user would like to introduce you to solve the problem, and ask what is important to solve these problems.
Explained why your product is the best, why better than existing products on the market, and why your team is best suited to develop this product.
Finally, to provide financial projections for the future, show your confidence in the company's future performance, but not blindly optimistic.
The first time you communicate with the VC usually an introductory message, the message body of the company profile, the attachment is an executive summary.
If you are face to face, if interested in VC, will usually let you send an executive summary to him.
If you have such an opportunity to build on the progress, it is best the day it is sent to him, and by the good momentum forward.
In the executive summary to special care, contain more substantive things in this short document, the more you believe VC carefully thought about your business plan, which is to show you the skills to communicate directly.
Presentations
Once you have moved the VC mechanism, usually they will soon be asked to do a live demonstration, this file is usually a substantial introduction to the company, (the same information conveyed and executive summary) about 10 to 20 PPT.
Note To preset scenes for a different audience, ready to targeted PPT.
Simple first investor to do is to demonstrate the truth.
In fact, most VC only concerned about several key points in the project, that the products in question to be solved, the size of the market, the team's advantage, competitive position or competitive advantage, your development plans and status of the company.
In addition, financial data summaries, milestones and the planned use of funds is also very important.
Most good financing demo can handle even less with 10 PPT.
Above three documents is the minimum information needed to prepare.
In addition there are two important instructions.
Two important instructions
1, the demo version of the product - the most important!
A demo version of the product, it is important for early-stage companies than that several documents.
Demo version of the product can show your vision, but also allows VC involved.
More importantly, it's like we showed that you can create something substantive content and displayed.
Had heard a piece, a coffee shop in Zhongguancun, some people often gathered to talk about work, talk about the business model, CEO, vice president, sales, product manager, personnel at all levels are fully serviced, and finally found're just one programmer.
You can see how important it is to have something substantive.
Demo version of the product may have limited functionality, UI rough, and even system crashes, however, we all love to play.
Keep up VC interactive presentation about the manner of your product can solve any problem, then the steering wheel over to them and let them get involved.
2, on the business plan
In general, the regular routine of the financing will have a business plan.
All aspects of the business plan describes in great detail the company, is to extend the executive summary to detailed chapters, including market, product, target customers, market entry strategy, management team and financial position, too long-winded, most people rarely We have the patience to see the executive summary is sufficient.
I have a class, the teacher introduced before a commercial canvas (below, "business canvas squares"), you can write a business plan based on these nine aspects, we are interested to learn next.
Commercial canvas means a team to generate ideas that can help reduce speculation and ensure they find the right target audience, tools and reasonable solution to the problem. Commercial canvas makes the business model visualization, using a common language to discuss different business areas. To describe and analyze how businesses, organizations create value, deliver value, access to basic principles and tools of value. It can help companies understand business rules.
to sum up
1, the material needs to be prepared:
Company profiles, usually 1 to 3 segments
Executive Summary, usually 1 to 3
Financing presentations, usually 10 to 20 PPT
2, the presentation of the product, then you need (can be used with PPT presentation with)
If a software company, best practice is to lean startup (Lean Startup), from creativity to market, the most simple test can begin product. google, facebook, micro-channel in this manner is employed.
Alternatively, the form does not matter, only the PPT clear your thoughts to organize.
3, and finally talk about entrepreneurship
Troops and horses, forage first.
The company started must prepare sufficient funds, financial projections is certainly needed.
Good budget, although you can not predict revenue accurately, but can accurately manage costs.
Some have been around success and friends, and those business stories you see are not the same, neither narrow escape, nor vigorous.
I hope you have to try, courage to take that step, I wish you a speedy achieve financial freedom.
We welcome comments, I wish to learn and progress :)
