Pattern of ownership.
The exclusive rights to a product in the form of the patent, a copyright, a trade mark or the license will allow reducing risk of an investment of money as it can weaken a competition, anyway for a while.
Example: One of businessmen held the patent for developing of bicycle. Nobody wanted to invest in its production, however there were many interested persons that waned to invest in creation of a prototype and goods patenting so that it was possible to offer its manufacturers of the whole world. However it is necessary to notice that the idea of patenting all the same doesn’t outweigh knowledge of a market outlet and ability to advance the goods on it.
Needs of financiers
Everyone who lends money or invests in the enterprise expects from the businessman that it will mean also needs of the investor and can reflect them in the business plan.
Bankers and any other credit organizations search in the enterprise for pledge under the credit and should have almost 100 % confidence that they can return money. They also will demand payment of percent which reflect a market condition and a risk level of an investment of money.
As just created or quickly upcoming business usual has no immediate profit money under such projects is usual gives not by banks, but by venture capitalists, along with other sources which include friends and relatives.
Because risk of investment in the new enterprises investment in already working enterprises is higher, rather than managers of venture investment funds should offer the investors the raised percent of return on the put up money. To carry out this task, managers should choose the present star, the enterprise developing with rates more of 50 % a year to move of inevitable mediocrities in the portfolio.
Sample proportion of activity of the invested enterprises
However it doesn’t mean that if you will present frankly weak business plan, the venture capitalist will invest in it. The manager tries to pick up only winners. Venture capitalists also aspire to receive as it is possible bigger share in your enterprise. Their share in yours enterprises will depend on how much risky is your enterprise, how many money you can make and from your capabilities in negotiations. However it is necessary to remember always that 100 % from anything are anything. Therefore all parties participating in the enterprise should be satisfied.
It is necessary to notice and that venture investors pursue not long-term, but short-term objectives. Usually they aspire to sell the share in the enterprise in 3-7 years.
It is necessary to remember one more thing: all investors interest that how as you will do monitoring and to supervise indicators of the enterprise.
The times when governments have been flooding people with all sorts of grants are over. At least for a while. But that does not imply that one should get rid of the idea of getting small business grants.
Everything is doable with wise attitude; small business grants including.
Go to this blog for more practical tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This info will help you to get small business grants or any other grants in a more convenient way.