ForumsStarting a Business

DMJ,

One of the best things you can do is once you finish your business plan, figure out all your routes of distribution and bring those in to the table when you meet with VC firms. They are not only going to want to see that you have a product, but that you have a way to get it to market.

I have dealt with them, and trust me, they are interested about the money more than the product. If you can show them a good product, but a great way to get it into the customers face, you'll have a much better shot.

Make sure you play up your current and past role in the IT industries. Thats perfect that you are staying within the feild you have history in.

As far as VC firms go, you should be able to find a decent amount of them out there, and a good place to start is GoBigNetwork.com. I have some decent success with them in the past as far as thier information being up to date. One tip though, if you look through and find all the companies that meet your criteria, and then write down all thier names, search for them through Google. By doing this, you can bypass the membership fee for the contact information.

Good luck, and best wishes.

Brian

PS: I hope everything works out with your father-in-law, and good for you making the sacrifice to help him out in his time of need.

In the past few years, more angel investors have emerged and a lot more businesses have started seeking them out. It used to be a challenge just to find an angel in the first place. Once the connection was made, it mostly came down to having a near flawless business plan. Now it seems that angels are everywhere (they even hold events where you can go in and make your pitch to a group of them) -- so while a near flawless plan is ultimately still a requirement to be funded, a lot of effort also has to be focused on grabbing an angel's interest initially and on separating oneself from everyone else who has a proposal. Some of the tools to do this are:
1) a succinct traction statement (that sums up in one or two sentences what the business is about and why it's a great opportunity for an investor);
2) a powerful executive summary of your business plan (written like a marketing piece, except with compelling facts rather than "fluff" or hype);
3) two well-prepared pitch presentations (a 5-minute and a 10-minute version of your proposal that you can deliver in person).

You obviously have to finish your business and marketing plan before you can write the executive summary or prepare your pitch -- so I guess the essence of my advice here is to allow (and take) the time to do that once you finish the plan and before you start "shopping" it to potential investors.

I relocated a business when my mother was terminally ill, and understand at least some of what you are experiencing with your father-in-law's illness. I wish you and your family the best.

Thank you for the responses.

I used SCORE quite extensively when I was forming my current business. They have a lot of great tools available to the small business entrepreneurs out there.

My business plans and marketing plans are developed in a thorough and concise manner. I could not in good faith provide those documents to a potential investor if they were not. I am expecting to spend a couple months in developing those 3 documents.

In regards to video games, the marketing plan has to be very dynamic and publisher dependent. For example, Publisher A may provide most of the marketing and funding to help with the development of the game. Where as Publisher B may only provide the methods of distribution.

I guess I should rephrase my initial question. In regards to Angles, what type of Return on Investment requirements can I expect? Will they expect that return in one year or five years to coincide with an exit strategy etc. How would you recommend contacting an angel.

Thanks again,
DJM

Thank you again for the responses.