If you want to fund a new business and don't want a bank loan, venture capital could be your answer.
Venture capitalists are cashed-up investors who provide entrepreneurs with the equity to get businesses up and running. The payback is that the investors get not only their investment back but also a percentage of the company's profits.
The Australian Investment Network website features thousands of businesses looking for start-up funding or expansion capital. Many have been matched with investors on the hunt for the right investment opportunity.
Greg Ferrett, the chief executive of business coaching firm Exceptional Sales Performance, says a clear business plan is vital if your business is to have any hope of whetting the appetite of a venture capitalist. You also need a realistic exit plan. Ferrett, who has interpreted the unfocused plans of many enthusiastic entrepreneurs and transformed them into realistic business plans, says it comes down to the chemistry between the venture capitalist and the entrepreneur. ''If it's right, magic can happen.''
Some entrepreneurs worry that investors may intend to take over their business but these concerns are rarely warranted. A business coach and corporate adviser at Be Business, John Hagerty, says being responsible for producing results in your business is the last thing most investors want.
URL : http://www.brisbanetimes.com.au/small-business/startup/fund-your-own-venture-20110323-1c62r.html