Investors, like the rest of us, have different tastes. One investor may love a concept and/or business plan while the next may hate both. It is important to understand this as business plans are working documents and are always undergoing iterations.
Management teams must not rush to incorporate each potential investor’s comments. Instead, have several investors, partners and other business colleagues review the plan and provide feedback. Then incorporate common concerns and probe other comments to determine if they are valid.
Always try to understand the rationale behind an investor’s comments. For instance, an investor may poke holes in a business plan if it doesn’t have enough funds to fully fund the opportunity. In this case, the investor’s criticism is solely for them to save face.
However, if you are hearing the same feedback from multiple investors, it is probably valid. In such cases, be humble. Tell investors that you appreciate their feedback and modify your strategy and plan appropriately. You may then be able to re-approach these investors with great success.
Many investors have significant operating and investing experience and can quickly and expertly find potential flaws in a business plan. Seek out investors who have such experience, and be open to their suggestions. Just don’t take one point of feedback and blindly follow the advice. It is also important to note that even the most successful and largest public companies have Boards that provide similar feedback and advice, so don’t take criticism and feedback as a sign that something is wrong with your venture. Rather, use it as a launching pad for an even stronger business.
Since its inception, Business Plans by Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com or visit our venture capital placement site at GT Venture Capital.
What do you think about this article? Do you agree or disagree with it? Be the first to comment on this article, and share your thoughts with the world. No registration is required to post comments.
The feedback I'm talking about here isn't some sort of
formalised appraisal that takes place with your team members
every month, or every six months or once a year. This
feedback happens continually and it...
How long should a business plan be? A business plan needs to be whatever length is required to excite the investor, prove that management truly understands the market, and detail the execution strategy....
Honest, Fair Feedback.You want it. Everyone does.Only trouble is, the more you need it, the less likely you are to get it.Why? Research shows that 98% of us do one or more of these three things when we have...
Offshore Business: Incorporating an Offshore Company John Von Hoostadler Engaging in offshore business gives investors a lot of advantages such as privacy, more lenient legal rules, lower taxes, easy...
Any good business needs very good customer service to survive in these days of fierce competition. This is especially true of an Internet business. An Internet business is no different from an offline business
Extra, Extra Google Now Gives you feedback. By Creating a Google Sitemap using free online tools you can get Google to crawl your site within 24 Hours. As an Added bonus after Google Crawls your site they...
Executive Decision Coaches - Benefits Of Feedback Denise Croft For those dreaming of eventually ascending the corporate ladder to become a top executive, or even a CEO, the executive decision coaches are a...
Having your business grow and develop into a bigger, and better one is one of the ideals of business handling which may actually require help from other support, may they be from an investor group or from a...
As the economy worsens it's getting more and more difficult to fund business ventures. After you've gone through the basics of a well written business plans and a private placement memorandum, where do you...
Receiving a tweet can be very rewarding. That means that you're being recognized, developing good relationships is important on Twitter to you and to your business. It also is feedback says that you're...
When deciding whether to incorporate your business, you will need to examine the pros and the cons and decide for yourself what is best for your company.
A California limited liability company provides the ideal combination of protection against personal liability with tax breaks and access to state sponsored business incentives and advice that are open...
Filing for a corporation in California is an intensive process in which the services of an attorney are definitely helpful, but it can be done without professional legal assistance for the budget conscious.
If you're a contractor or are after a more flexible working pattern, it can often be hard to find something that suits you as you can often end up without benefits. Working for an umbrella company could change
Forming a new business can be a daunting task. On the road to living your California dream, you inevitably find yourself in the midst of contracts with partners
There is a lot of risk when creating a business. There are a lot of opportunities to fail and lose a lot of money. But, there is also the potential to completely turn your life around. How you manage the...
There are various reasons why company formation in Singapore is popular. Given that it is an advanced state with prime infrastructure and technologically progressive telecoms and Internet industry, it is truly
During a company formation, numerous people have chosen to use a dormant company rather than starting a brand new company. There are many benefits and reasons for doing this.
If you are an entrepreneur living in Arizona who forms an Arizona corporation for your web-based business, what happens when your wife's company moves to New York? In New York, your corporation would be...
Expanding Your Business Through Offshore Company Formation Martin Cubesdale Offshore company formation is widely used in today's financial circles. Performing a search using your favorite search engine will...
As the worldwide demand for energy increases, and oil prices rise, many venture capital firms have begun to focus on the alternative energy sector.In fact, in June 2005, Pasadena, CA-based solar company...
Over the past several years, Growthink has had the opportunity to assess the successes and failures of numerous entrepreneurs. In doing so, several lessons have become apparent that can often make the...
Most entrepreneurs constantly come up with new ideas. Whether they are working on another project, driving, or lying in bed, their minds are constantly churning out new products, services and ways of doing...
Most companies that are worthy of raising venture capital have proprietary Intellectual Property (IP). In fact, the quality of the IP and the management team are often the two most important aspects of a...
Article: Incorporating Investor Feedback Into Your Business Plan Author: Dave Lavinsky Publication Date: 2007-07-28 Total Views: 669 Word Count: 344 Category:Home /
Legal / Incorporation
Categories
