Understanding the Mind of a Venture Capitalist

So you have a new and wonderful idea, perhaps, to save the planet to solve the mystery of life, create an object, you make a better cookie, or just make everything better for mankind. Great!

This, of course, are things that you want, but do not want to hear what a Venture Capitalist or VC. They want to hear about your market and who you are selling to, how much will it cost, and if there really buyers. Most VC's do not care about your dreams, are important to them alwayshighest rate of return (ROI) they can on the investment.

Keep them in this picture? Well sort of. Check whether you intended to secure the best representatives of the company for its success. If not, you will be replaced because of the success must be reasonably assured. When you open a restaurant, for example, and your appearance is disheveled and your behavior is erratic or not responsive, then you can expect a big NO! If you prefer a high-tech companies into consideration, and you think everyonereally want a head-mounted computer system, assume NO do not go to the meeting, and you will remain a very happy man.

The reason I bring to everything, if you have an American Idol observer you should understand now that is very simple. You see 10,000 would find singers, and fewer than 25 make the cut because it does not check for a successful audition and had most of the ideas or singers can not sing easily. I have to many VC's meet in my career and the more I andtalk to them, the smarter you become.

These are simple people. They are either immediately see dollar signs all over you and your idea or they do not. There is no middle ground, which I find reassuring. Meaning that I would rather receive a hard NO with reasons I can think, as one might never really know, or something. While Simon is on the AI, deeply cut, when he says that one of the participants that "you just can not sing!" He tells them that their chosen path is not only stupid andwasteful, but not immediately in their knowledge and talent base reached, as a VC would. It is cruel, but I've been in the room, where 25 groups with an incredibly bad idea, no research, no evidence and no real differentiation, but a dream, and just threw the money they had in the hope of an immediate ring of gold.

The mind tricks us sometimes terrible.

You have to think clearly. You need to have honest opinions of people, the true experience in the field, you will receiveInput and they will tell you the truth. I have told many people, taking into account that VC "Hope is not a plan!". However, the following:

You need to sit down and put your thoughts down on paper.
You need to read someone else and see your position on whether it holds water, to argue.
You must read and research what you are against a market, industry or the support of an idea.
You've got the needed assistance to the areas you are weak in coverage, takes it as self-conscious.
You musthas a budget that details to see if you miss come up with something.
You need to find out about your idea or plan.
You need to calmly try it for other reactions.
You need a patent or trademark beginning including provisional patents for the protection.
You need to prepare like an athlete for a VC.
You need to be rested, confident and well rehearsed - you only have one chance to impress.
You need to present themselves as respectable, and you will be respected - the plan ofcomplete success.
You need to know who might be your competition.
You need to describe what makes you so different, so think about this morning.
You have to understand what a "barrier to access is" in your planning
You must understand, the advantages over others, remember it is their money immediately.
Your present plan should have a logical sequence, so that they get it quickly.
You need to write an elevator pitch to see if you can plan your entire trip in a time of up to explain.
Youmust prepare a detailed version of the elevator pitch for a group, understood as well.Finally and most important ... if you really have something (as by others not verified) waiver, do not run away, do not give up. Stand your ground, because your endurance to win more than anyone else will only weakness! Learn from your mistakes and adjust your plans quickly.

Now you go out and make the world better!

Sell Commercial Real Estate Notes

Sales of commercial real estate notes, you can convert small monthly payments into an immediate lump sum of cash. A commercial real estate note is simply a loan document signed when you financed the sale of your investment property. Commercial remarks for office, retail and industrial space available to businesses.

It sells commercial properties observed only at certain standards are based. The outstanding balance and period, are important for most buyers.Secondly, the value of the property. People generally sell part of its commercial real estate notes instead of selling them as a whole. Partial sales are more profitable in most cases.

If a company is sold in the form of real estate are usually produces two notes, one for the business and real estate. The company is a note similar to private mortgage and trust deeds, but it is not secured by real estate. One company, note createdif a person sells a business and decide on the financing and to collect regular payments from the new entrepreneurs.

A potential seller can sell commercial real estate notes as a whole or a part of them. The best way to sell commercial real estate, is down to browse Web pages, note the display real estate listings. Visitors of these sites range from individual buyers for companies and financial institutions. The chances of getting a better offer are very high.Estate Agents are a natural source for the sale of commercial real estate notes. You can you find the ideal buyer. Advertising in local newspapers and magazines can help you find homes and commercial real estate firm to sell.

Venture Capitalists - Cash For Shares

Venture capital is a type of private equity, investing works on the basis of liquid assets in companies in exchange for a share of a company. Venture capitalists are, however, offer not only their skills, a company, but also provide for administrative and technical know-how.

Venture capital is very popular among new companies and new businesses. Many of these venture capitalists who invest in your company have a background in business and chief executive officer ofInvestment bankers as well as links with other firms, investment companies and finance areas.

Venture Capital is a viable source of funding for a business. Venture capitalists have the opportunity to invest in each phase of the business, whether it is to create businesses or invest in an established company, but more than is usually not a Venture Capitalist investing in established and ongoing business relationships.

When is comes to theKinds of businesses, venture capitalists are investing free to invest in the economy all they want, although if you look at the development of venture capitalists, you will see that investing the most important companies, venture capitalists in the high-tech, such as research and development, electronics and gaming industries. Venture capitalists also deal in large sums, which often run into millions of dollars.

Most venture capital agreements have a fixed term ten years and it should be noted that a venture capitalist is suitable for all entrepreneurs, as not all companies have the opportunity to use the help of a Venture Capitalist. The venture capital market is very selective, a venture capitalist may only be in one in 400 hundred ways to invest that are submitted to them, so if you win a venture capitalist, you must have a well documented to have business plan and must demonstrate the ability and your> Companies will be able to adapt enough capital for the help of a venture capitalist, invested in your company.

If a company does not possess the qualities, which is looking for a venture capitalist, as a solid business plan, a good management team, investment and passion from the founders and a good potential for investment before the end of its cycle funds and target - exit minimum returns of more than 40% per year, you will find it easier toGet a venture capitalist to invest in your company.

A venture capitalist will also address questions such as:

• Is your product or service profitable?

• Does your company's potential for sustainable growth?

• Does your management team have the ability to exploit this potential and the control of companies through growth spurts?

• Does the possible reward justify the risk of the investment involved?

• Has the potentialfinancial viability to meet the criteria for investment by venture capitalists?

Nearly three million people in the UK are supported by venture capital firms operate according to the British Venture Capital Association. Many of these companies may not be in existence without being able to inject cash and advice to venture capitalists.

My Business Needs Money

The global recession and credit crisis have cut too many of our businesses, we are all in need of cash. Businesses need to go back to the basics in times like these, and you must contact that has seen you, where you were before the current environment. Unfortunately, it's time some of the ways the fringes bleeding and steeling cash flow from the core of our business scrap. It may be time to go back to basics and concentrate. Below is a list of 10 action itemsthat in these economic times, can help put money back into the bank and have your company ready for the next opportunity comes, it.

1. Focus
2. Get back to basics
3. Scrap projects that are marginally
4. See how we pay our employees
5. Check out our variable costs
6. Negotiate with creditors
7. Negotiate with suppliers
8. Fire marginal customers
9. Create a sense of urgency
10. Communicate your plan to your team, suppliers and friends

Focus morebut especially when times are hard. This is no time to try out wild ideas and money. This is a time to be sharp like a laser and focus on how to make money. Fore ask what in the bacon, which is repeatable and what your company is known. Concentrate on the customers that matter and perhaps even those who do not have the fire. It is a time for your business of waste and marginal opportunities to circumcise.

Get back to basics "is another way of saying to concentrate, toBut it goes deeper. You start your business or company on an idea which made the generated income, and money. Have expanded over time, taken on new projects, and have tried different things, some good and some not so good. It is time for your company to check and see what is not the payment of dividends. This can be a difficult task because they are emotionally involved with our ideas, but it's time to go back to the essence of what made you to decide where youare.

Scrap marginal projects is a different form of concentration and back to the basics. Any company that does not do the last few years about exactly what they started doing. You try to explore new things and expand and new ideas. These economic times will require you to projects that bleeding and / or cash will not return, what your core business is scrap. The problem is that even if a project is a great idea and can can finallyWork that you need capital to execute it properly and this is a time to save and build your cash. They know that even though a project may not bleeding, it bleeds cash resources and focus from the core of your business, that's what you should be focused on the right side now.

Our employees are our greatest asset. Most companies have a core group of employees that are critical for success, and this group produced every day. However, you may have expanded andhave brought in some marginal people who are draining the resources of the company. You can marginal producers, their compensation may be that they use up resources from the rest of the group. It is time to examine how these people are compensated to the view when they should be there at all.

Our variable costs are numerous, and our benefits, we provided our employees, some of these may be. It may be time to look for any cost, which is not resolved to. It is time to makeDecisions on the payment for certain things and cut costs by shifting our business to our suppliers, our employees or, to them all removed.

It is time to get a look at our debt and seek to negotiate more, and / or discounts. The whole world right now and the one sure way of putting more money in your balance sheet is squeezed to force your creditors. This may of course a sensitive issue, but it might be worth a try.

Our suppliers are in the same boat as ourcompany. They need to be in step with you and know that you are looking to lower inventory, increase inventory turns, get longer terms, and generally improve working capital. If you go deeper into your vendors organization beyond the sales guy who calls on you, like the CFO, or the CEO they may have ideas and may be able to help you come up with solutions that will put cash in your pocket. These people are your partners and they win if you win, so do not be afraid to engage them in helping you with your goals and objectives.

Some customers cost money to do business with. You know this, and unfortunately this is no time to familiarize yourself with marginal customers. This is a time for the customers prune, the life drain from your company and focus on customers that make you money. You will be amazed at how this energy and put money back into your organization.

Create a sense or urgency of now. You can leave these things until tomorrow. Although itSigns of recovery in our economy, economists say all that we are a long way, and nobody knows what will happen tomorrow. If you save money today, act now and do not refuse.

Communicate your audience and your goals for your team, your suppliers and your friends. Let the world know what you are doing and what you want to accomplish. They have some great people and if they know what they are promoting you on the pitch and come with their own ideasand this becomes a domino effect. Do not forget to have a few days or weeks, you have focused on a marginal project and the team had focused on, and suddenly you realize that you do not have the money to have it take off. The team must be aware that priorities have changed and you are building cash and scrapping everything that does not work, help us focus this goal.

In conclusion, you will be with the cards that you dealt with dealt with, and unfortunately are the daysdifferent today than it did a few years ago. However, it is a good idea to action items at least once a year anyway. All entrepreneurs exploring and trying different things that they believe will help the company, and at least once a year you should take a step back and look at these projects. All businesses need money to operate, but in these economic times, it is essential to try and build up a cash reserve. The banks are not lending and that has an enormous waveinfluence with our suppliers and customers, so unfortunately we have really focused on the essentials. If you are the target of money in your account to communicate the purpose of making, and lead the team, you will raise money and build your cash.

How to Appraise a Business

There is work out a lot of different means to value the company. For the small to mid-size business, there are about 3 main approaches that are used more than others and these are market value, earning and asset value.

In short, these are described as follows:

Rating based on income: First, looking at the possible profitability of the company in the future. The past earnings, expected future growth of the owner's compensationAdjustments, as well as the specific risk issues, such as customer concentration, very poor management and short diversification taken into account when the income is used based evaluations.

Market Review: This method of valuation of companies is very much alike, how to sell the house, while the values. What is considered here, which can pay market for business in question. Essentially an information gathering on the sale of similar businesses in industry, businessis in. The "Rule of Thumb" Information is only summary of the many companies with millions differences are not considered sold.

With estimates of revenue and market valuations, we can choose 2 different cost multipliers. One is the gross cost of sales and other costs, which divided the result. Applicable costs more is selected primarily on the profitability of the company. For example, the highly profitable business with the high price would be more practical to have.The business of assigned lower price and lower profits from the use of several of these loom is another correct result obtained when an application makes use of comparative data for at least a dozen of the same type businesses.

The asset assessment: This species is preceded by the evaluation procedures that companies pay fair market value of its physical assets and its immaterial assets. Be deducted from the total assets, liabilities and debts. To have the value of business thatIntangibles are used in some methods. Method that is used in this part, is estimated to earn 5-stage surplus. We can not go into details of how it is done, we explain only that there is method and a brief explanation. Never attempt to use this technology without some classes and seminars that you do in detail of the process train.

This calculation is about the intangible assets, fixed assets, liabilities, and their adjustments are estimatedValue for business and numbers, what reasonable return on the assets, the economy must be. If profit is large, as that particular number, there is evidence that company has some intangible assets that generate more profit.

If companies in question are not or only partly in cash then it is no intangible assets, and if this case, asset valuation technique is used in general. This is a case, because if the business is occupying the capitalsuperior in equipment and other tangible assets will be other assessment methods like the price far below the actual asset value, and without any good will. The goodwill is not considered at all, because there is no goodwill value, if the income it shows low incomes. It is understandable that, although business is not producing any profit or loss making, which seeks the seller, at least, what tools are worth acquiring. For this reason, this method has been used.

India Among Top Jeanswear Market

India's top jeanswear market
Jeanswear trends in India really began in the eighties with the establishment and the movement of brands like Avis, Wings, Flying Machine, UFO, along with international brands such as FU's. With the realistic prices and a "Good jeans for less" was set in Newport, the mass psychology in the mid-nineties. The growth in the domestic market jeans and leisure wear draws a growing number of multinational companies in this segment.

TheIndian youth becoming increasingly fashion conscious and purchasing power consistently on the rise, making life easier for the rapidly growing "premium" category jeanswear brands. On the other hand, has been hard times for other segments of the company - one of the underperformers will be a mass market jeanswear brand.

Denim boost consumption in India
Different categories of clothing, including jeans wear innerwear exception is the brand tags attached in India. A label tagis a must now on the back waist panel also tailor-made clothes. May vary in relation to the contribution section of the brand in each category percentages, about 79 percent of the jeans sold in India, with label, has the rest of the jeans by Schneider and local manufacturers with no-name supplied.

Every day in India there are many small shops, where tailor-made jeans are sewn for as little as Rs 200 And their customers are not only Indians but also in the west, and you canYou can find a long queue of people in the West, waiting to throw custom jeans acquire and use as wear and tear, and it is because of the reality for the Westerners, that the availability of a customized garment in very small quantities. On the other hand, the increasingly affluent middle class amazingly responsive about the charm of branding.

Denim wear, while consumption in India and the business itself changes almost daily with new changes and new brands, it is alsopart of its measures by determining the size, character and makeup, and it also requires a deep market research study.

According to a survey report, taking into account the aspects of the socio-economic, cultural, emotional and functional layers and their applications, there are four kinds of brand jeans wear market in India.

India's top jeanswear market
Jeanswear trends in India really began in the eighties with the establishment and the movement of brands such asAvis, Wings, Flying Machine, UFO, along with international brands such as FU's. With the realistic prices and a "Good jeans for less" was set in Newport, the mass psychology in the mid-nineties. The growth in the domestic market jeans and leisure wear draws a growing number of multinational companies in this segment.

With the increasingly fashion-conscious Indian youth and buying power consistently on the rise, making life easier for the rapidly growing"Premium" category jeanswear brands. On the other hand, has been hard times for other segments of the company - one of the underperformers will be a mass market jeanswear brand.

Super-premium segment (Rs 2000 +) - brands such as Tommy Hilfiger, Hugo Boss, AN Jeans, Rocky S Jeans, jeans Rathore

Premium segment (Rs 1000-2000) - Pepe, Levi's, Lee, Wrangler

Middle segment (Rs 500-1000) cover-Most Indian brands, both central and Premium Groups

Economy Segment(Rs. 300-500)-Ruf n Tuf, Newport, Impact, Thunder, and in the warehouse labels such as SRC and Westside 2fast4u, the prices between Rs. 375 to Rs 600

At the lower end of the unorganized and jeanswear market is the price, as assumed at Rs.300. Where, then cover the majority of Indian brands, both medium and premium categories.

In the year 2001/02, approximately 34 million units were sold, jeans, a market value of Rs1363 crore, the balance sheet. The super-premium brand jeans was almost not there in theMarket (about Rs.3 crore), up to 2001/02, there were only a few companies. Accounted for at this time, the economy segment (Rs.300-500) was at around Rs.500 crore. The premium (Rs.1000-2000) and middle segment (reach Rs.500-1000) to Rs.150 crore and Rs.400 crore respectively. Until that date, to consumption per pair of jeans under the brand Rs.1000 mainly as an upper limit.

Then observe a clear pattern in the period of 2002-03 increased the premium and middle segment ofapproximately 20 and 15 percent. In other words, we can say, jeans above Rs.1000 price were more than those sold.

The economy segment rose by around 10 percent, while the total size of the market grew by around 10.8 per cent compared to 2001-02, with 37 million pairs of jeans just raking over Rs.1500 crore turnover in 2002-03.

The report shows that, of all price ranges, the premium segment, a large amount of visible and perform faster growth. During thePeriod of 2003-2004, the premium segment increased 25 percent done with a market value of Rs.225 crore.

The economy segment has a steady growth at 10 percent, with a coverage over 15 million units in the Rs.300-500 Inexpensive conversion to the shelves of shops. With the fastest growth in the premium segment, together with an increase in high-quality super-premium sectors (30,000 pieces Rs.9 causes) crore turnover to Rs.1690 crore with 11.9 per cent, the total reachedJeanswear company also increased one percentage point. This key improvement of the super-premium price range is amazing within a few years. In 1999, when a brand was introduced at Rs.1100, it was tested as a "super-premium," while at the same price, so would the same product in 2003 to build hard to premium segment.

For the years 2004-2005, the study projected a further rapid growth for jeans than one category, at around 12.5 percent.

Once again, from the PremiumSegment, the fastest growth is likely to remain despite the growth at 25 percent. The middle segment was projected to receive the period of 2002-2003 - at 15 percent and contributed over Rs.608 crore from eight million units. The economy segment is also carried out steady increase - 10 percent - with almost 17 million units shifted to retail shelves.

Around 43 million pairs of jeans are expected to be sold during the period of the year 2004 to 2005, with men's clothing obtained with theMost - 76 percent to 17 percent of the women wear and kids wear at 7 percent. By the end of the current fiscal year would witness the jeanswear in India Review of Rs.1902 crore.

In addition to women's wear, denim wear, while the scenario of the market brand for kids wear market potential. For children, in addition to only clothes may cause significantly more in denim accessories and functional products.
However, there remains some doubt as to how muchwith the attention given to 10-15 years old segment. This states that a consumer is not in the core jeanswear brands' target fit - will be 16-25 - and is not quite ready, "children treated. For denim, there is a large base in this age group who like structured adopt commodity that is associated with different preferences.

In 1997 as the base year for the price range measures taken. Then, the super-premium price range of Rs.800-plus non -are presented, as it is not too many deals fall outside this range. However, we were surprised find that now the super-premium range can be defined in a simple series of Rs.2000 plus. The time is changed in such a short time. It is a great learning for us all and especially for international trademarks.

During the assessment on the part of the entry strategies for several international brands and one of the most difficult task is to determine the right price points. There are many aspects --Parity with international prices, global positioning, the image perceived in the new market and the expected position in the emerging market a connection to established brands. And most of the time, is a combination of these parameters and their weights used to identify with certain others, not likely to consider certain factors. Unlike developed markets with established or it does add a lot of space on the premium end, once the brand is established and people are well informed about the differentiation,and the only factor that has to keep in mind is that the Indian market growth is fueled and driven by inflation.

The entrance of the premium price points in the denim market is also determined by the fact that the market in the delayed phase in the years 1999-2000. At this time the marks were required to present more value-added content products to consumers' views of denim to create in any other way. In contrast to weigh "the worker clothing, jeans with embroidery and innovative washes, styling and cutsit was found that more than fashionable apparel.

This change in rank allows jeans run about newer and higher price points. And the giant unlock the door for many international brands to aspire to higher prices ahead points through the creation of more goods. Support to the recognition of denim wear, while as fashionable clothing fascinates many Indian designers to show their strong presence. And you add more goods to the premium and super premium ranges.

The economy and lowerPrice margins were apparently in progress unnoticed jeanswear brand. In India there are only a few exceptions, such as Newport tried in the mid-nineties, Ruf n Tuf, and the time (on the Arvind Brands and Pantaloon Retail joint effort) to collect this large and untapped market opportunity.

The jean brands for their continued existence have found a break at the premium end, the actual speed, where denim is one that is still untouched. The approximations are that, at a pricePoint Rs.300 for jeans that could market the size of Rs.2000 crore ie larger value compared to the entire market currently exists. However, the biggest challenge for everyone in the entire supply chain - be it the distribution or retail outlets in front-end or the production of highly efficient at the other end.

Consequently, allowing the expansion of modern retail formats as large department stores and numerous shopping centers run exclusive brand stores, whereProducts requires a different stage of the environment and service levels to demonstrate, test, and buying, which until today, was the strong support of the development of premium-end look at a great one. The situation seems to be more gradual for premium-end brands with the constant growth projection in the retail sector.

The markets seem driven to prove that the jeans could soon be soon only for a further decline, but they give the impression that with all these newProducts and innovations that can be premium brands in a position to be much better phase.

(Given the manufacturing point of view whether the fabric or clothing) as Arvind Mills and Mills have demonstrated their competence in production and have received the greatest amount of respect as a manufacturer capable of presenting the cheapest basic denim fabric in the world. Although, India will in fact not efficient jeans laying down the procedures as VF Corp. (owner of Lee and Nautica Jeans) haveother parts of the world.

Commissioned by the marketing and sales point of view as a mass market of jeans, the complex and differentiated nature of the distribution chain does not allow many good choices and went, and also has many perceptions expressed in their push. Although you want a lot more effort from logistics providers and the rapid development in retail formats like Big Bazaar, many problems can be eliminated and can be a great potential for jeansopened.

To supply to urban and semi urban masses: another target group, the products
At the rear end, although there are certainly periods of markets in urban and semi urban masses from the large proportion of rural and semi-rural markets further target to deliver the products. Since the practical requirement of jeans can be very different from what is required, the masses of the urban market "will vary, it is a challenging task from the basic product does so itself. Whetheris waterproofing, anti-bacterial or is terminated, when considering the size of the market, which are required Jeans for the rural market, more and more research and development activities, and develop the market. It is the efforts dscl (Hariyali), ITC Ltd (Sagar) and Godrej (Adhaar) met in rural retail, the setup in the rural market may soon become much easier to handle. This may put up the doors to open up the largest untapped market in the world.

In the end, you wait for theOpportunity is a premium brand, it is surprising that all potential segments are in fact already in position to the attention and can be easily molded. Although, the absent part is a confident company that all these segments together, and moving to put this potential into real business.