Venture Capitalist vs. Angel Investor

Venture Capitalist

Venture Capital is one form of acquiring funding for business. The difference between venture capital and traditional funding is that venture capital is equity based meaning capital is exchanged for part ownership of the company. Where as in traditional funding such as loans, are debt financing and must be paid back, however in debt financing there is not loss in partial ownership.

Venture Capital is often considered by entrepreneurs who are unable to acquire funding from more traditional sources because of the company’s size, stage of development or assets. Venture capital funding typical focuses on young and high growth companies, they invest equity capital rather than debt, and it has a longer investment horizon than traditional funding. One of the major factors of business success and long-term growth depends on the availability of funding and because of this lenders require some sort of security before they invest in a small business. If a company is just starting out and does not offer a guaranteed success or financial growth, lenders less likely are to invest in that company. When lenders invest their money into a company they want to make sure they get the return on investment which makes it more difficult for new businesses to acquire venture capital. As the Venture capital is most likely to be given to an established company with an already proven track record.

Distance is no longer an issue

 

Since the technology and the way business can be done over the internet now-a-days, distance is no longer an issue. Where as many years ago, if someone wanted to open up a business, they were restricted to a certain area but as technology evolved, demographics no longer puts restrictions on the success of a business. The internet also created opportunities for new businesses and opens the doors to expand existing businesses because business owners can now reach virtually anyone in the world.

Do Entrepreneurs Need A College Degree?

 

There are many different viewpoints and debates about whether entrepreneurs need a college degree or not. Some say that having a college degree prior to becoming an entrepreneur is important. Others think that young entrepreneur should be spending their money wisely when starting out rather than spending an immense amount to attend three to four years going through business school.

Freebies – A Lead Generation Tool

 

The main reason for someone to give away something for free on a website is not to increase sales it is to generate leads and to provide value. In order for someone to get that free item, they are usually required to enter their contact information, usually the name and email address, sometimes also the phone number. For example, on my website I have free reports visitors can download in return for their contact information.

Why Adopt Social Media Marketing

 

A few years ago, no one thought that social media would become this popular as it is today. Businesses were debating if they should, and can, implement social media as part of their marketing strategies. What was just debate a few years back is now very clear that no business can survive without social media presence. Social media is where most people hang out nowadays and businesses can take advantage of that. One of the basic marketing principles is to find out where the target market hangs out and then market to them. Since Facebook and twitter have millions of members, it is just logical to take advantage of that, and to connect with potential customers.

Business Plan vs. Business Model

A business plan explains everything about the business, from what is the purpose of the business, to the individuals qualifications, the financial aspects of the business startup and upkeep, the marketing strategy and plan, how many employees are employed or will be employed, a description of products and/or services that are being sold, basically every little detail about the business. A business plan is also a living document, meaning it is never a done deal. A business plan should be updated regularly to reflect any changes. Even the smallest business should have and can benefit from having a business plan in place.

The Follow Up

Prospects not always buy from you right away, sometimes they want to wait, or they want to discuss it with their spouse, maybe they say they don’t have the money right now. What that really means is that it is often just a stall because you haven’t shown enough value. Sometimes it could also have a legitimate purpose of the prospect wanting to wait. With that said, if the prospect does not buy from you, you MUST follow up with them at a later time.

The Sales Mindset

The sales mind set is part of the inner game of selling and it has to do with how a person thinks about selling. Good example, when you think of a sales person, what do you think of? Most people think of a sales person as liars, manipulation, high pressure, just out to make a sale no matter what.

Because of such mindsets, many sales people carry those negative thoughts around and it follows them into every presentation they give, every call they make to clients, and every time they try to close a sale. Which then results in salespeople not asking for the order; Clients can pick up on those negative thoughts and end up not buying, unless they really want what the salesperson has to sell.

The 3 Key Components To Grow Any Business

If you are in sales, have you ever wondered why you can't seem to increase your sales results? There has to be a way to get predictable results! Right? The answer is yes, you can produce predictable results. In order to produce such predictable results there are three key components every sales person must consider in order to grow any business.

The three key components to grow any business are:

- Generating Leads

- Setting Appointments

- Converting Leads into Sales Presentations