How to Choose the Right Start-up to Get Venture Capital

With a widening credit crunch, new business Start-ups are finding it difficult to get venture capital from investors that flaunted open pocketbooks just a couple of years ago. While it's more difficult now, the shrewd entrepreneur knows that some start-ups are less risky, with higher predicted returns, even in a credit recession. Choose your start-up wisely and you have a better chance of securing venture capital.

Difficulty: Moderately Challenging

Instructions

1. Think green. As the world struggles to control fossil fuel reserves and science points the way to a healthier environmental future, new Start-ups that produce enviro-friendly components are in demand and show positive growth predictions.

2. Try polar opposites. If green isn't your thing, economists predict that the United States will soon begin increased production and refinement of our own fossil fuels in the midterm before green energy can feasibly take their place. After the EPA restrictions of the 1970's, mom and pop community refineries sold off their steel to China. A successful entrepreneur knows that providing more steel is like money in the bank. And venture capitalists know it, too.

3. Choose a Start-up with a short model-to-market time frame. Venture Capitalists are looking for a quick return and the faster the product's turnaround time, the sooner they realize a profit. Long-term market times are out of the question now, they don't want to wait that long.

4. Make it faster, better or cheaper. If you can accomplish one of those three goals, you have a shot at luring venture capital. If you can accomplish all three, the investors will be knocking on your door. In the fast-paced world of "I want it now," speed and cost rival quality to form the three seductive goals for any new Start-up.

Tips & Warnings

• Put your super invention on hold right now if it doesn't address a current need in society to make or save money.
• Resist offering more interest or profit to a venture capitalist. If your service or product is good enough, you can still find capital at reasonable terms.

Resources

• Find venture capital.
• Make an Employee Contract
• Save on Worker's Comp Rates
• Implement Employee Drug & Alcohol Testing
• Employees and drugs
• Boost Workplace Performance
• Collect Donations on the Internet

[HowardBThiname]

on 1/22/2009 Thanks. Finding venture capital for a start-up is an important factor in success.

[Upon-Request]

on 1/7/2009 Smart tips for Start-ups!