|
|
| What would you do with a million dollars? |
| Friday, November 03, 2006 |
It is extremely important to consider how you would utilize cash and other resources, if you had them. Have you ever taken the time to fully consider what you would do with a million dollars? Or, ten million? Or, fifty million? Have you ever considered how you would apply and distribute cash resources?
Create Business Plan:
When you consider how you would use assets that you have not yet obtained, you are thinking like an entrepreneur, you are organizing the components of a whole prior to their existence. This act of forethought can lay the ground work for the development of a prosperous future and provides you with a mental excercise that requires you to consider the mechanics of the business enterprise you desire to create.
Even before it exsists, the concept of a business can be bought and sold. It is a marketable instrument. A well crafted business plan will provide a narrative summary of what the business will be, how it will work, and how it will benefit investors and stakeholders. If you know what to do with a million dollars or more, someone will probably give it to you so you can use it. Understandably, the will expect their investment to be returned to him and increased. Consider the biblical parable of the three servants. A business plan is your chance to tell investors why you will be the good servant.
Epimetheus and Prometheus:
This was the difference between Epimetheus and Prometheus. For those who may be unfamiliar with Greek mythology, Epimetheus and Prometheus were titans and brothers. The myths hold that they ruled the universe before the pantheon of gods (Zeus, Hera, Athena, etc...). These two titans despite there close familial relationship had extremely different approaches to the creation process. Epimetheus (whose name translates to be "hindthought") was given the task of distributing unique gifts to animal creations, many of the gifts he gave to the animals made them into the monsters that littered Greek lore and he incidentally exhausted all of the gifts he could think of before he came to man, the masterpiece of his brother Prometheus (whose name translates to be "forethought"). Prometheus realized that man would be helpless and gifted man with the fire and the ability to manipulate and control it. It was quite a boon for mankind (or s othe story goes) and mankind with its gift was capable of everything and possessed an almost divine power by virtue of the gift. Epimetheus failed and Prometheus corrected that failure and greater enetity by thinking ahead. The forethought of Prometheus made him superior to his brother in many ways. As the story goes on Prometheus is bound for making man so great and Epimetheus, the poor guy, ended up marrying Pandora - but that's another story.
Asset Allocation:
The principle of asset allocation is critical for the purposes of developing a marketable business plan and building any business. Businesses operate with the resources they have and can generate additional resources from a variety of sources if they can illustrate how those resources can be effectively and gainfully applied. Remember not every business concept that is turned into a "the next big thing" starts in a garage operating on a shoe string budget. Many start on a few sheets of paper that show an intellegent design for a business model and demonstrate to investors how they will be rewarded for sharing, lending, or investing resources in a startup business.
Find the Funds:
The funds are out there and entrepreneur have to compete for them. Although the sheer amount of funds makes it seem as though there is an unlimited amount of capital available, it is in fact a finite source. The possessors of this capital are often entrepreneurs and look for opportunities to increase their own wealth by involvement in new businesses or by providing a boost to going concerns.
A few examples of websites that create markets for these types of transactions include:
The Go BIG Netwok offers a venture capital guide that can be quite useful to anyone who wants to get a baseline understanding of what venture capital is and an overview of how to obtain it.
Visiting these sites is useful way to develop your understanding of the marketplace, but represents only a beginning venture capital is very sophisticated market and to improve your chances of capturing the attention of investors and securing the funds for your business. Consider some research into more specific elements of venture capital such as Regulation D Securities Offerings that provide three exemptions from the Securities Act registration and allows entreprenuers to sell securities offering without taking licensing examinations, so long as no compensation is paid for the sale of those securities.
Turn over some stones:
You need to look at the available opportunities to find the seed capital that you need to create your enterprise. Many opportunities are missed, not because they are overlooked, but because they are never looked for. The animation below will show you how to ask for what you want. It remains up to you how you will use it.
|
posted by Domesticated Dog @ 8:01 PM  |
|
|
|
|
|
