Some thoughts on funding proposals

We hope that you will take into account the guidance we are able to provide both here and with the first meeting. If you can your chance of success is improved.

If you are member of Business Club International you will find a range of information and help available to you, from model business plans to the chance to try out putting forward proposals at presentations. This page is not really meant for you, but for those who are trying to do this in the dark. You may however like to look over the information provided. If not go to the link at the bottom of the page.

What we want to explore here is what is well received and what is not, as it may help you to consider the design of proposals being formulated.

Lets for simplicity here refer to Business Angels and venture capitalists, as BA's to reduce the amount of text.  The following is not a complete list but a good start.

BA's do not like

  • Proposals that have not been fully thought out - so no instant concepts or ideas.
  • Projects that are indefinable or impossible to fully understand.
  • Proposals based on inventions that won't be fully disclosed.
  • Proposals that have the BA's taking all the risk but the promoter not taking a risk that is significant to them.
  • Promoters who don't value the opportunity, for example they fail to show up to a meeting,  turn up in casual clothes, or are unprepared.
  • Promoters who are expecting BA's to put in a bucket of cash and allow them to decide what to use it for, switching and changing direction, without consultation.
  • Projects that feature salary replacement, or giving the promoters a large salary, and perks like expensive cars ahead of them earning them.
  • Having facts concealed, like the existence of a major competitor.
  • Bundled projects that have no focus.
  • Promoters who split new projects into separate companies from the rest of their activities, and don't offer a position with the holding company.
  • Any proposal that expects a BA to be a bank guarantor. (This is usually a non starter).
  • Proposals that involve MLM that is not completely viable without it.

BA's do like

  • Promoters with a track record of achieving something beyond education.
  • Promoters who are open, friendly and honest.
  • Promoters who want to involve them and utilise skills, knowledge or contacts that BA's have.
  • Projects that can be easily defined, and you know what the project is.
  • Being as fully informed as possible.
  • Being able to see real commitment that the promoter is not going to walk away from.
  • Rewards being tied to results for promoters.
  • No unnecessary expenditure, luxury offices, company cars etc ahead of them being earned.
  • Well thought out and presented plans, that have taken different levels of success into account.
  • Risk assessments and an idea of what can be done in each risk case.
  • A management team.

While it is not essential to meet all the likes and avoid all the dislikes, the number of BA's that are interested is reduced if you do not.

Attending some of the ABAN Plus Club events will also help you to better understand what other members like and dislike, as well as trying out some presentations at special club meetings for this, allowing you to smooth out problems or know objections that you may need to work out answers for.

Continue by clicking here to see the process and our requirements.

 

Think about a project being put to you, you would expect 2+2=4 unless there was a good explanation why this was not the case.  Remember any proposal has more chance of succeeding if everyone understands it and has no concerns.

JOIN TODAY - see the Membership types overview