When preparing a plan for venture capitalists, it is critical to try to mitigate the risks inherent in the venture. To mitigate the risks, the plan should stress areas in which the venture excels. This will give the investors validation that their chance of success is highest. To accomplish this, the plan must, among others, stress the qualifications of the management team, prove that the size of opportunity is formidable, show competitive advantage, and detail the operations plan that will allow the venture to effectively and efficiently go "from here to there."



When venture capitalists read a business plan, they constantly ask ?what if.? By giving them the confidence that the team, the opportunity, and the strategy are all sound, answering the "what if" questions positively becomes easier. This in turn pushes them to the next step which is typically to meet with the management team and assess whether it is the right team to execute the venture.

When developing a venture capital business plan it is also critical that the plan be properly edited. Most venture capitalists have advanced degrees and have spent many, many years in school. As a result, they naturally spot typos and other inconsistencies, which cast a negative light on the venture. Likewise, since venture capitalists must review so many plans per week, making them visually appealing enhances their impact.

In summary, venture capitalists are a sophisticated group on investors that "swing for the fences." To attract their funds, companies must prepare grammatically-sound, visually and verbally appealing business plans that highlight their strengths and mitigate risks.

Since its inception, Growthink Business Plan Development 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
However, it is important not to confuse attention with investment. It might be easier than before to gain attention, but if you have not carried out your research, and have only a sketchy business model, then you can expect to see the potential investors walking away very quickly. It is more important than ever to do your homework, and be fully prepared.

But this shouldn't be seen as bad news at all. It's always been important to be prepared, and the current climate only highlights this need. By highlighting the importance of preparation, research, marketing and understanding, this means that today any business which succeeds in not only gaining venture capital interest, but also succeeds in gaining investment, has a rock solid base and is more likely to succeed and grow to at least expectations than might otherwise have occurred during times when investors may have been happy to take slightly larger risks.

Another aspect of venture capital which can often be forgotten is that it is not all about money - it is very much about getting people with experience and business knowledge to become involved in the business process. This can only be seen as a good thing, and having the right investor on board can do wonders for the growth and success of any business. Focussing entirely on getting the investment can be missing the point.

With an investment from a company or private investor, who will then be represented on the board, it can mean the difference between surviving, and succeeding. Don't opt for the first investor to wave a bundle of notes at your business plan. The investments are there for the taking, so don't assume that in today's climate you should jump in to the first investment option to present itself to you. Venture capital is a two-way street, and if you forget that fact, you could get run over before you've even started.