Just when you were thinking of starting your own company. . .
Loose change isnt so loose these days. Prying a round of investment from the withered purses of todays angel investors or firms is no longer a matter of delivering a clever idea and a compelling short speech. Markets have faltered, and with them the tolerance for risk. The quick kill dried up long ago, along with the supply of ready cash. Big surprise; Investors now expect performance ahead of investment. Explosive sectors like biotech and the internet, along with huge growth in three-digit multiples, fostered a tolerance for botched execution. After all, it was really about the wasnt it? Investors positioned themselves for short-term gains, exiting quickly and moving on to the next big idea.
Falling on ones face was, after all, to be expected when aggressively innovating. But that was then. These days, expectations are a tad more demanding, at least from the investment houses that are still in business.
Dont get the wrong idea: Theres still plenty of money. Its just that investors have matured beyond dating start-ups. Now they want to marry them. Flash and sizzle no longer count. Results and a track record do. Proven execution means reliability and shelter in the storm, and it is stormy out there. Investment will follow a solid opportunity, but its up to you to start your own enterprise, because in this economic environment, investors wont.
Okay, so you launch your start-up. You boil away your savings and get yourself in hoc with your parents, relatives and all your friends. Now what?
Reliability means executing a business plan with meat on its bones, a credible plan with vision, accurate numbers, and down-to-earth assumptions. Investors will make you prove you can execute to your plan, too, even if youre just starting out. Theyll demand evidence you practice what you preach before throwing initial funding your way. Then, in order to lock up continued funding, youll be on the hook to show an expanding customer base, market leadership, increased sales and margin. Credibility means realistically planning your growth. If you cant do that, youll never grow.
Credibility also hinges on long-term planning for expansion. Investors expect growth, right? What is your plan to evolve the backbone of your business? - Financial, Quality, CRM, Marketing, Distribution, Production systems? How are these functions accommodated when youre small? Five years from now? What milestones cause you to add people/cost? What market conditions fund those milestones? Where are plateaus in your opportunity from which to launch vertical markets, international expansion? Investors have matured, how will you?
A winning technology or brilliant idea is just the beginning. Partnering with experts like Thomas Financial Services, LLC, www.thomasfinancialsvcs.com who specialize in connecting you with the investment community, can get you off the launch pad faster, get you to market in time to claim the top of the hill. Business insight helps you tell a better story, build a bullet-proof plan, makes you a better company. Of course, connecting companies with investors is more than just tuning up an enterprise; Playing from the money side, savvy investors rely on such experts to offer insightful, fast, third-party analysis of emerging opportunities and the people who run them.
Great ideas, poorly executed, usually fail. Mediocre ideas, perfectly executed, tend to turn into something big. Its no secret; Winners keep winning. Success must be institutionalized to be sustainable. Help is around the corner. Embrace it. Times have changed. Growth is slower. Investors insist on long-term wins. You must too.

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