We have been consulting an investor ( a strategic VC Operations) on investing in various projects.
- The entrepreneurs who had approached the investors were operating more from their gut feelings than from data.
- They are very optimistic about their future prospects, even though they have been facing tough times for a long time.
- The data of the best possible scenario is generally referred to as the standard expected scenario, which is never even remotely close.
- Expenditures are considered on a very loose levels and always underestimated.
- Lot of challenges are discounted and overlooked till the time they become big and unconfrontable.
- Competition is never given its dues in terms of considering market share, marketing, sales and talent retention challenges.
- Sweeping generalities become the business plan instead of data oriented thought through strategies.
- Cash Flow is expected to be taken care of, by the expected business revenue – which generally fail to be as per the expectations.
- Challenges faced by the industry as a whole, are not fully considered and rarely brainstormed to create innovative solutions.
- Scant respect for Financial Planning, strategy, HR, training and development are seen in many cases.
- Employees are expected to be automatically aligned to the vision that is hidden in the mind of the promoters.
These are some of the observations, but definitely not applicable to everyone.
Many entreprenuers have demonstrated that they do not fall in the above pitfalls and they steer their organizations to great success and sustained performance standards by combining the entreprenuers fire in the belly, with the strategy and systems.
- Have accurate data of the past and realistic data about the future.
- Have all industry related information handy.
- Have your financial data impeccable and ready to discuss.
- Have your competition and various factors affecting your organization performance detailed out.
- Have a strong strategy and marketing plan.
- What are the Key requirements for success in your industry, is it technolgoy, manpower, skills, market converage? Have all the bases worked out.
- Realistic Growth Plans.
- Detailed SWOT Analysis or the reverse TOWS Analysis.
- Create a realistic picture of the Opportunites and Challenges and your plans for dealing with them.
- Clearly identify the areas where you have not yet sorted out things or you would like inputs or are working out external inputs.
- Have guidance from professionals like CAs, Management Consultants, Govt. liasoning officers etc., as required.
- Create 3 plans , worst scenario, best scenario and realistic scenario.
To discuss more, contact:
firstname.lastname@example.org; email@example.com; 919375970812