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Some mistakes entrepreneurs should avoid

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You had busines idea. You decided to partner with someone to develop it and launch it to the market. You need cash. You are looking for a VC to join your project.

Here are some mistakes every entrepreneru should avoid making when presenting the idea and the business plan.

Published in: Business, Career
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Some mistakes entrepreneurs should avoid

  1. 1. Mistakes entrepreneursshould avoidWhat VC’s will not like about your project Barcelona, May 2012 IGNOVA www.ignova.wordpress.com
  2. 2. What VC’s will not like about your project BUSINESS MODEL Business Sales & Financial Team & model Marketing projections Capabilities 1. The business you are proposing is not scalable 2. The revenues of your business model are unclear 3. There are too many revenue streams defined in your business plan 4. Growth strategies are not defined 5. There is no road map to develop new revenue streams in the futurewww.ignova-consulting.com 2
  3. 3. What VC’s will not like about your project SALES & MARKETING Business Sales & Financial Team & model Marketing projections Capabilities 1. You will create a new market 2. You have no competitors 3. You do not know who your competitors are 4. You’re trying to create a new need to your potential customers 5. You’re not sure who your main clients will be 6. You don’t know how you will get to your clients 7. You have not stated how you are solving an actual problem to your clients and why your solution will save their lives 8. You have no idea on what your market is (how big it is, whether it is increasing in volume or decreasing, etc.) 9. There is no solid evidence of how you will sell and at what price 10. There is no detailed explanation of how you will communicate your product 11. There is no information on the cost to acquire new clients 12. You are not capable to explain your competitive advantagewww.ignova-consulting.com 3
  4. 4. What VC’s will not like about your project FINANCIAL PROJECTIONS Business Sales & Financial Team & model Marketing projections Capabilities 1. You do not know your cash burn rate 2. There are no milestones defined 3. Projections are not progressive 4. You are not explaining or perfectly detailing every element of your financial projections (client acquisition cost, number of clients, etc.) 5. You forgot to include obvious costs (wages, licenses, etc.) 6. Your hypothesis are wrongwww.ignova-consulting.com 4
  5. 5. What VC’s will not like about your project TEAM & CAPABILITIES Business Sales & Financial Team & model Marketing projections Capabilities 1. There is no balance in your team’s capabilities 2. No one in your team has a deep experience in the industry you want to create your new business 3. The team is not a 100% involved in the projectwww.ignova-consulting.com 5

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