The Investment Problem...
Investors can expect a failure rate of anywhere from 20% to 90% of the enterprises they fund, with higher failure rates expected the more embrionic the venture.
Many investors try to mitigate the risk of failure through diversification, spreading their investments across companies in different industries and different countries whilst others concentrate on industries that they are familiar with. In either case, they usually work on the assumption that for every ten investments they make, two will be failures, two will be successful, and six will be marginally successful.
If only the six that were marginally successful could be turned into beautiful butterflies! Well perhaps they can...
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The Solution...
Many start-up companies make the mistake of thinking they need revenue, they don’t; what they actually need are customers. Customers bring other customers with them and build confidence. Once you have customers you can then focus on generating revenue and finally profit. The value of the business is not based on what historically happens, it’s based on its future; the future value of any business is based on the profitability of its customers.
Customers...then revenue...then profits.
Business development experts are the key ingredient missing in many investor/venture finance relationships. In our opinion there are three essential ingredients that make any start-up business successful; a novel idea, a source of cash and customers. In order to bring these three things together a new, or an existing business, must have an Idea Owner (IO), a source of finance (SoF) and a customer generator or business development expert (BDE). The vast majority of business ‘opportunities’ require this tripartite approach.
Idea Owner + Source of Finance + Business Development Expert = Success
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If you would like to discuss how our team of business development experts can help your investment portolio grow then please complete the form below or call 0844 858 4120 to speak with one of our consultants.
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A provider of customer-centric investment support and business consultancy services. Develop, Improve, Evolve.
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