For instance, a book entitled Under the Radar: Starting Your Net Business without Venture Capital, Venture capitalists often find that many business plans are too optimistic (Kling 2001). The book asserts that,
Trying to obtain venture capital funding without a business plan is like trying to get into college without filling out an application. Ironically, however, even venture capitalists are skeptical about business plans. Any venture capitalist will tell you that a first-rate team with a second-rate business plan is preferable to a second-rate team with a first-rate business plan. In fact, when I listen to venture capitalists describe how they make their decisions, the process often sounds highly intuitive and almost romantic -- like the scene in the movie Jerry Maguire where his girlfriend says, "You had me at 'Hello." Venture capitalists often complain that the business plans they see are ridiculously optimistic (Kling 2001)."
How to make a good business plan
Indeed a good business plan should certainly contain all of the above-mentioned elements. In addition, the plan should encompass the full scope of business operation and clearly define the goals of the business. In addition, it should contain pertinent financial information about the business. Having such information will prove beneficial when the company attempts to secure venture capital or other types of funding.
A good business plan should also be realistic concerning their goals and the overall outlook for the company and industry. The business owners should be optimistic but also realistic about what the business can accomplish. Overall,...
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Small business owners should consider numerous business ratios. The measures of liquidity enable the business to live within the day-to-day expenses. These short-term obligations must be fulfilled by the business. Measures of liquidity are obtained through the two main features in the current ratio and net working capital. The ratio between the current assets and current liabilities should be considered by the business. Activity ratios are another business ratio that
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Sage, who has seen how costly application customization can be, has created a series of template-based charts of accounts, with the last count indicating they had over 70 of Charts of Accounts that could be quickly used by customers to customize for their business. Sage has also seen that inordinate customization of software can lead to a lack of adoption; hence their motivation for creating a library that can
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