Tag: venture capitalist

How small businesses attract investors: make reasonable financial forecast

Posted by WFG – September 29, 2011

In dealing with potential investors with venture capital, many small business often ignore the importance of making a reasonable financial forecast in business pitching.

Investors need to see a reasonable forecast before making any move

To explain this point, first put yourself in an investor’s shoes. As an investor, what you are doing is to put a certain amount of money into a company, Read the rest of this article

Meeting venture capitalists: what questions to expect from investors

Posted by WFG – September 28, 2011

Venture capital has been a popular way of funding small businesses, especially start-ups since the early 1990s. Most small business owners today rely on venture capital from private investors when executing business expansion, because it is usually not easy for small Read the rest of this article

Venture Capital Providers for Small Businesses

Posted by WFG – September 19, 2011

Many small business owners think of getting venture capitalists for expansion. Businesses that developed using funding provided through venture capital has been popular since the 1980′s. VC investment were peaked during the late 1990s when all the IT bubbles expanded. Today, the market has gradually changed and venture capital providers are not the same as 10 or 15 years ago. Here are two major phenomenons that we see in the current business market.

 

Large Venture Capital Investment Companies Are Not for Small Businesses

Over the recent decades, a few large investment companies supported and made success a list of famous companies such as eBay, google, facebook, etc. But these type of companies are nowadays more concentrated in funding companies that are in their mid to late stage of development. They typically provide millions of dollars at least on each project, and only to expect these companies to grow exponentially in a short period of time and lead the world industry.

That said, as a small business owner, it would not be easy to seek funds from such companies because it is not easy for the analysts to see potential of your company to become the world’s top, and that is the criteria they are looking for.

 

Potential Venture Capital Providers for Small Businesses do not understand your industry

Many small business owners find private equity providers either through referral or advertising. But the most likely situation is that the VC, though with enough funding and interested in investment in a small business, does not have enough related knowledge to analyze your business and make a decision.

The only solution here seems to be finding more potential investors, present your business idea to them one by one, until you find one who has knowledge in your industry and would like to invest. But that would cost much time and effort as a searching process. An alternative way is to find a group of investors from various industries and pitch you business to all of them, in which case finding one who understands your business and is willing to invest is much easier.

There are TV programs that provide this opportunity, but the application process could be painful. And most importantly, many people are not comfortable having their business idea broadcasted before it is realized

Now, small business owners have an alternative great choice for pitching their businesses to VC’s. Pitchyourbusiness.ca provides this opportunity for small business owners to meet the VC’s in confidence in an boardroom setup. The VC’s are hand selected to represent an broad range of industry, that makes the perfect venture capital providers for small businesses. Presentation sessions are held in major cities such as Toronto, Montreal, Vancouver and Calgary in Canada.

Where to find investors? How do you find investors?

Posted by Winflow – September 14, 2011

Where to find investors? How do you find investors? Questions of such are often asked by every small business owner. Funding from investors help a business grow exponentially in a short period of time. We have seen examples such as Google, Facebook, Starbucks and ebay who all used the help from private investors that made them what they are today.

Where to find investors?

Here we refer to the geographic locations of where an investor could be found. And the answer is almost everywhere. Here are a few examples: Read the rest of this article

Funding Available to Aboriginal Business Owners in Canada

Posted by Winflow – June 8, 2011

If you are an Aboriginal business owner in Canada there are number of resources and funding available to you. Through the Aboriginal Business Canada program, small business owners can receive help developing business plans, securing non-repayable funds and accessing lenders if necessary. Funding available to Aboriginal business owners includes:

  • Individual entrepreneurs can receive up to CAD$99, 999 worth of assistance if they qualify.
  • You could receive up to CAD$1 million if you operate a community-owned business.
  • Non-commercial projects like special events that cover Aboriginal entrepreneurship could have 100 percent of the costs covered.
  • The amount of support you receive is determined by a number of factors including the need for financing, the scope of the project and what other funding options are available to you.
  • You must offer equity in your business for the loan. It is usually between 10 to 15 percent of your company.
  •  Different projects get different percentages of funding. For example, you could get the costs of implementing marketing techniques subsidized by up to 60 percent.

If you are an Aboriginal business owner interested in ao funding from the Canadian government, read this guide.

For more articles on funding assistance please read the following:

To learn more about other funding options available to your small business, call the Winflow Financial Group at 1.800.956.6897.

Choosing the Right Small Business for You

Posted by Winflow – June 6, 2011

Many of us dream of the freedom of starting our own business and being our own boss but many people don’t realize the responsibility that comes with being a small business owner. In order to ensure success, choosing the right business  for you is key. Here are some things to keep in mind when considering entrepreneurship:

  • Be aware of the financial aspects of a business. Research the start-up costs and decide which method of funding is right for you. This could include private lending, government grants, government loans or involving a venture capitalist in your business.
  • Choose a business that utilizes your skills. You’re going to be happier doing something you enjoy doing. Base your business around your skills to improve your chances of success.
  • Be sure you want to commit the time. If you can’t stand those 40-hour work weeks, entrepreneurship may not be right for you. Small businesses require a lot of time, especially in the beginning.
  • Know your exit strategy. Decide from the beginning whether you plan on selling your business or keeping it as a source of income. Do you always want to be in control of the business or will you use the success to cut back the number of hours you put in?
  • Choose a business that suits your needs. If you hate going into an office, set up a business where you can work from home.

If you need advice on your business choices, contact the Winflow Financial Group at 1.800.956.6897. We will work with you to ensure your business is the right one for you.

    

Pitching Your Business to a Venture Capitalist

Posted by Winflow – June 6, 2011

Funding a start-up business on your own can be difficult. One funding option entails involving an investor in your business. By giving up a percentage of your company, you will gain the money and experience you need to see your business make it to the next level. When pitching to a venture capitalist, there are number of tips to keep in mind, including:

  • Keep it simple. Capture an investor‘s curiosity by delivering your idea in a short period of time.
  • Be aware of the competition. What makes your product unique? How are you going to compete with larger companies?
  • Go into detail about how your team has the experience required to make this business successful.
  • Include projections to show venture capitalists your business can make money down the road.
  • Give all the information about the product you are trying to market and include how a customer would use it and why they would use your product over another company’s version.
  • You must be able to convince an investor that the valuation of your product is sound and they are getting a fair percentage of the business.
  • Ultimately, the investor must decide if your product will get him a high return on his investment.

To learn more useful tips about pitching to a venture capitalist, read this Wall Street Journal article. If you need assistance making connections with an investor or planning your presentation, Winflow Financial Group can help. We offer free consultations and can be reached at 1.800.956.6897.

Private Funding for your Small Business

Posted by Winflow – June 6, 2011

It isn’t always possible to get a loan from the bank to fund your small business. Private financing can be a good alternative if you want to retain more control than you would if you chose to partner with a venture capitalist or an angel investor. Here is some information to keep in mind when considering private lending:

  • Private funders are comfortable giving loans the bank won’t provide and can also assist you in structuring your loan repayment plan.
  • Most private lenders expect the same information you presented to the bank.
  • It is good idea to have contingency plans ready to present to private financers.
  • Private lenders are more likely to back high-risk ventures, understanding the opportunity and risks involved.
  • Present accurate business forecasts and make sure your idea is backed by experienced professionals who ideally have a financial stake in the business.
  • Most private lenders keep a relatively low profile so finding them can require some assistance.

If you have been turned down by the bank and are interested in seeking private lenders, Winflow Financial Group can help. We are a team of senior consultants that can give you the exposure to private funding that your small business requires. To request a free consultation, visit our site or call 1.800.956.6897.