Setting up your own company is not a cut-price activity, and in the likely event of having insufficient funds in your bank account to get the business off the ground, you’ll probably need to seek venture capital. This is investment provided by wealthy businesspeople who take a vested interest in the company in exchange.
Of course, in order to persuade a hard-nosed venture capitalist to invest in your business, you’ll need to show them that you’re onto a winner. That means having a very clear idea of where your business idea is at and where it is projected to be over the next few years. In addition, you’ll need to make a personal connection with any venture capitalist you approach so that both parties can establish that a professional relationship would work.
This infographic from All Finance Tax http://allfinancetax.com/income-tax-return-service/ provides a well-informed overview of the venture capital process so that entrepreneurs have an idea of what to expect if they decide to approach venture capitalists. Crucially, it also lists the most common pitfalls to avoid if you are pitching to a venture capitalist.
About the Author
Colette Cassidy is the Director of All Finance Tax. She holds a 2.1 honours degree in Commerce from University College Cork. After college, she joined the Kerry Group as part of their graduate recruitment programme for management accountants. She gained experience in senior accounting roles at companies such as Quantum, Apple and Microsoft prior to setting up All Finance Tax in 2003.
