1. EXPECTATIONS OF FUNDING FOR
START UPS vs EXISTING SMALL BUSINESSES
As of 2011, there were 28.2 millionsmall businesses, accordingtothe U.S Small Business
Administration. Basedon the establishmentof somany, itwould appearfairlyeasy tostart up a
businessventure,andmaintainlongevitythroughcapital injectionsfrominvestors.
SOLE PROPRIETORSHIP/PARTNERSHIP
But, whataboutseasonedprofessionalswhoare filledwithideasof startingabusiness. Projectionsof
a businessventure canbe hinderedbythe amountof cash neededtoactuallygetstarted. One of the
manyavenuesavailableforcashoutlaysincludesreachingouttoAngel investors. However,the
drawbackthat existsinbeingsuccessful inthisattemptrelatesdirectlytothe actual existence of a
business,inneedof additional capital,asopposedtoastart upthat has not yetestablishedatrack
record. An idea,forinstance,thatmay evolve throughcontinuous revelationsof the possibilityfor
successremains justthat,an idea. Case inpoint: BusinessPlanwriterswhose trainingmay vary
from a PhD level of educationtoacertificationinthisfield,have the abilitytoruna successful business,
giventhe rightmarketsize, the demandthatexists, andvision/efforts for continuedexistence. But, at
the startingpoint,the abilitytomeetoverheadexpenses,whichwouldinclude,laborhours,and
supplies, hastobe met. The notion of havingConsultantsOn-Call tomeet increasingdemands, onthe
one hand, createscertainreservations,intermsof the contingenciesinvolved;since one consultant’s
requirementsmaydifferconsiderablytoanother’s. On the otherhand, undera sole proprietorship,
withdemandsthatare reasonablyspreadoutoverseveral months,overheadexpenseswouldbe
constrictedtotime and efforts,andsupplieswhichwouldallow forpreparationsof these plans.
At inception,asasole preparerforinstance, overheadexpenseswouldtypicallybe coveredbydeposit
requestsforanytype of preparationsof abusinessplan. Althoughthese depositswouldvary

2. dependingoncomplexityanddepthof whatneedstobe prepared,the standardsforacceptance of
these feeswouldbe uniformed,percentage-wise. As such,these depositswouldrepresentthe basic
coverage for anyexpensesassociatedwithpreparationsof eachindividual plan. But, how about
othertypesof expenses,whichwouldrequirealargersumof capital infusion?.
From myvintage point, properplanninginasmall businesscanallow foropportunitiestoraise enough
capital to continue tosurvive. But, a start up withnomeansof measuring marketsize andfinancial
performance wouldhave adifficulttime planningandstrategizing. Since marketsize wouldhave to
be measuredbasedona timeline,andthe demandthatcoincideswithsuchatimeline,itiseasyfor
businessinexistence toquantifythesemeasurements,whereas,itcanonlybe projectedasa non-
existentone.
Ideally, anamountonthe average, of $150,000 wouldcovernot onlythe time andexpensesfor
consultantsinvolved inasmall businesswithprojectionsof lessthan100 businessplansperyear,such
an amount would alsoprovide acushionforanyunforeseenobstacle,suchasunexpectedediting,and
increasingcustomerdemands.
Investors’Expectations
Applicabilityof concepts,cantheoreticallytranslate intojustifiableunderstandingof customer
expectations,aswell asinvestors’. Accordingto a June 5, 2014 article writtenby M. Newlands,from
Entrepreneur.com, Angel investors,intheirdecision-makingprocess,relyon1) Financial Performance;
2)Experience andBackground;3)Uniquenessof the service/product;4) BusinessModel; and 5) Market
size.
I do agree withthese five pointsinthe article,consideringthe risksinvolvedinnon-familiarityof a
productand/or service. In addition,understandingwhatmatterstoinvestorsisveryimportant.

3. Financial performance mattersdeeplytoinvestors forobviousreasons ---- One of their keyconcerns.
Such performance canbe measuredinaccordance with a track record of results,overasetperiod. A
start up companydoesnothave the luxuryof provingfinancialperformance. While astart up doesnot
have the track record, necessaryformeasurements, Intheory,anexisting companywitharecordof
losses,ratherthangains,wouldbe considered highriskfroman investor’sperspective.
Secondly, backgroundor experience inanindustry,isfavoredbyinvestorswhoseinterestsare mostly
protractedtowardliftingupstart ups,basedonthat alone. Relevanteducationina particular
industrymatters;justasexperience. If it doesnot,it should,forobviousreasons. Educational
institutionspresentthe bestandlatestmodelsavailableonthe marketforstatistical measurementsor
financial indices,fordecision-makingprocessesandideas.
In addition,the uniqueness of acompanyor idea,can onlybe conveyedaftersuchhasbeenestablished.
The competitive edge maybe relatedtopricing,convenience,orotherelements deemedattributable
to the servicesprovided. In a start up,there mustbe an elementof uniquenessthatsets one apart
fromthe competition. But,again,uniquenesscanonlybe measuredafterthe businesshasbeen
established. Ideally,asabusinessplanpreparer,offeringthe customerbase a lower-than-market
incentive canbe viewedasapositive edge againstcompetition.
In addition, A businessmodel mustinclude adesignthatdisplaysfromstartto implementationwhat
needstohappen. Sucha model caninclude an industryanalysis to comprehendwhatthe normisin
such an industry; and whatthe projectionsare duringthe life cycle of the venture.
Lastly, marketsize of a customerbase can be determinedthrough measurementsof existingcustomers
and projectionsbasedondemands,existingandforecasting.

4. The pointbeing,atthe starting point,capital formationmustbe inexistence before angelinvestorswill
engage inprovidingsupport. Only,inrare instancescanthe riskof the absence of measurementsbe
deemedso minimal,thatitbecomesamoot point. M.Augustin. 1/27/2017
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