Of Ideas, Opportunities, Angel Investors and VCs – 40 min video post

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The following video, which is roughly 40 minutes in length discusses:

- The main types of startup businesses
- How to tell an idea from an opportunity
- Potential funding sources
- What potential equity investors, particularly VCs and angels are looking for

StartupAlready – ideas vs opportunities and funding sources [click this link to access video]

It talks about these kinds of small business startups:

Hobby businesses
Lifestyle businesses
Franchise businesses
Self-funded growth businesses
Outside-funded growth businesses

It also talks about using the following criteria to screen business ideas and opportunities:

Startup investment required
Suits strengths of founders
Founder enthusiasm for industry
Founder enthusiasm for idea
Potential for residual income
Market growth rate
Number of competitors
Maturity/strength of competitors
Ability to take a vacation
High gross margins
Employee headaches
Potential for break-even in 12 months
Potential for “significant” income if successful
Liability risk associated with business

The following types of startup funding sources are also covered:

Self-funding
Friends and family
Credit cards
Home equity credit line
SBA loan
Angel investors
Venture capital

Finally, it talks about the importance of covering the following in your pitch to angel investors and venture capitalists:

Market size – show that it’s a real problem with sufficient market size to pursue

Problem – what is customers’ key problem/point of pain and why is in not adequately solved today?

Solution – how does your offering solve this problem? (high level)
Offering Description – go into more detail on the solution; try to keep in layman’s terms as much as possible

Case study – actual or hypothetical customer – show revenue and profit flows where possible

Sales/Marketing/Distribution – how to you sell this solution / get it to the target market

Partner strategy – who can you partner with? What is their incentive? What do you get out of it?

Overview of financial model – high level – Sources of revenue? Recurring vs non-recurring? What are key costs?

Financial results – actuals, if available – otherwise, more detail on projected Income Statement – go out 3-5 years

Management team – who is the team that executes? Track record? Track record together?

Growth plan – how will you grow the business? Does it scale well? Timeframe?

See the 40 minutes video at the link below or at the beginning of this post and leave your comments and questions below.

StartupAlready – ideas vs opportunities and funding sources [click this link to access video]

Paul Morin
paul@companyfounder.com
www.companyfounder.com

via companyfounder.com

Jg

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