Venture Capital: Homework

Task: Watch this and then in your blogs say whether Christian was right to accept the offer.


http://www.youtube.com/watch?v=8o5kUnW7OxI&feature=player_embedded#

I think Christians decicion was really difficult! On the one hand there is Theo Paphitis who has a lot of experience in this sector but on the other hand there is Peter Jones with the much better offer! Theo apologized him that he put the product on the market faster than anybody else! I think that was the critical point for Christian! He wanted to have his product as fast as possible on the market!
But if I were him, i would look into the future and would take Peters offer!

Your Idea can make you rich chapter six: You and your money

Here the Dragon's Den are telling you how to control your money and how to safe and invest into useful things!
But see for yourself!

MY CONCLUSION:

In my opinion everybody who is really interested in business and how to make a lot of money should buy this book! Because one of the main reasons is that this book is written from people who are exactly that what you wanted to be. MILLIONAIRES!!! This book is not like the other business books namely boring and dry, this book is exactly the opposite! You can learn a lot and when you keep attention on the tips and tricks ad not be bothered you might be lucky and earn a lot of money in the future! All in all this book is AWESOME

Your Idea can make you rich chapter five: Investors

The chapter deals mainly with loan finance where you can find useful tips. This headline is divided into ‘bank loan’, ‘bank overdraft’ and ‘Credit Cards’. The first tip you should consider is credit card, money lenders and credit card agencies are not good for open a business. You should first ask for a bank loan because it is much safer than credit agencies or money lenders!
Definition of equity investments: This is what the Dragon’s Den is about! They exchange a share in your company for a capital sum.
Business angel is another method to seek for investment! Business angels are high net-worth private individuals who are looking to invest in companies that are likely to achieve high growth. The author wrote a link to the British Business Angel Association where you can find some investors:
http://www.bbaa.org.uk/
Venture Capitalists invest usually more than a business angel. The minimum of a venture capitalist is approximately at two million pounds but they don’t often invest in start ups. They expect a high level of return on investment within a specific time frame.
For venture capitalists exist a website to which is called: The British Venture Capital Association:
http://www.bvca.co.uk/
Additionally there are some sources for funding your own small business:
http://www.berr.gov.uk/
http://www.businesslink.gov.uk/
And for budding entrepreneurs aged between 14-30 the princes trust is the right address:
http://www.princes-trust.org.uk/

Your Idea can make you rich chapter four: Pitching and presentation

I found a nice quote from Peter Jones: ‘Presentation and packing isn’t just fluffy stuff to leave to the last minute.’
A presentation is all about selling yourself, the presentation and the method tell you what the company is going to be like and at this stage it says that YOU are the company. YOU should keep attention on how you present yourself, the words you use, the clothes you wear, the figures you have in your head and how you express your ideas. You should also use visual aids for your presentation like a power point presentation or an overhead transparency.

Definition of pitching: Presentation, sometimes high-pressure, to a prospect by a salesperson, to solicit an order or new business. In making a sales pitch to a prospective client, a salesperson usually begins with a positive opening line, demonstrates the features of the product while concentrating on selling its benefits, handles objections with a positive approach, and ends by asking for the order.
(http://www.answers.com/topic/pitch)
The Dragons top pitching tips:

Doug Richard: ’understand what an investor is looking for’
Duncan Bannatyne: ‘Know your numbers, know your percentages’
Peter Jones: ‘Know your end goal and work towards it’
Rachel Elnaugh: ‘Be passionate objective about what you do’
Simon Woodroffe: ‘Know the numbers instinctively, live and breathe them!’
Coping with Nerves:

Here are some tips how you can avoid nervously mistakes in your presentation:
- Breathe very deeply and slowly for a few minutes! -> You are realising your nerves
- Scrunch up your fists into balls and release!
- Yawn to relax your throat
But all in all it is really good to be nervous because that shows that you take care about the reaction of the audience.

Your idea can make you rich chapter three: Business Acumen

This chapter is about business acumen, financial performance and about business plan. First they bring some examples of entrepreneurs who doesn't have money to start their own business! They summarized real life examples from the 'Dragons Den'.
After this section the book deals with writing a business plan! They defined the business plan in the following way: A business plan is a statement of intent, a realization, on paper of your product's viability, of your goals and missions, of the industry you’re in, of your business strategy, as well as an analysis of the market and the competition.

There are thousands of business plan examples in the internet but you don't have to follow them because these formal business plan are only interested for the banks and institutions. Your business plan should include a full financial model, a marketing strategy, including competition and product positioning, a breakdown of people and management and a two or five year outlook for your business. The main reason why you should write a business plan is only to show the company that you are not a dreamer. When you finished your business plan you should write another one for yourself.

This is the formal idea of a business plan! The Dragons Den however have another idea how to write your business plan: First you should write a summary of the plan in key words! Then you should keep attention if it is interesting enough for the people who read your plan. For the advertising you can use the AIDA system: Attention (attention of investors), Interest (make interest of reading more), Desire (of what you are offering), Action (action of their own volition). Added to this the objectives, mission and viability of your business, the industry you’re operating in, your product ( define your unique selling point), the market, the competition, your strategy and your financial status.

Furthermore there is a useful part of patents. If you think your idea is brilliant you should first search in the internet whether your idea is not in use yet. You should look at the side for patents: www.patent.gov.uk (you can maybe get there some impressions)

Your idea can make you rich chapter two: Your market

This chapter deals with the first steps of starting a new business. The first section is about the background of yourself! You can prepare yourself a little bit for the questions about your background but actually when they asking you for example wether you are good at marketing or not. Then you have to be honest! Otherwise it might could be difficult for you. The next section clarified in which type of business you are. For example when you want to open a new hotel you are in the hotel business. But you may have to rethink why your hotel is different from others! Is your hotel providing good foot?

Or is fantastic accommodation the thing? Or for who is that hotel for? Families with children or teenagers? So you can see you have to focus on the customers need! The next point is your aspiration but I think thats quite simple! You want to become rich as a result of your idea.
Market Research is really important when you want to start your own business. So the first step you should do is talking with people who are passionate about your area of innovation. For example the hotel idea. If you want to open a new hotel you should talk to the hotel manager and probably the staff. Here are some question examples: Where do your consumers come from? Are they tourists, townies or suburbanites? What's their age group? What are their buying patterns? What's the competition and how does it target the market? Who influences the competition? Can YOU influence them?
The next point is 'Branding' which is in my opinion really important because you mark you out from the competition, it can help to build relationships and strike an emotional chord, it can foster credibility, it can help to build a reputation and create loyalty and it identify the product's fitness for its purpose.

Your idea can make you rich chapter one: Entrepreneur or Dreamer?

The first chapter of my book is about the difference between a dreamer and an entrepreneur. Added to this, this chapter tell you how have to behave and what you have to do for becoming an entrepreneur instead of a dreamer! The 'Dragons' are giving a good definition of an entrepreneur:

One who undertakes an enterprise, one who owns and manages a business, a person who takes the risk of profit and loss.
They say you that you can build your castle but you should build foundations under them. But this castle should be realistic and should have a basis in the reality! Furthermore are in this chapter all the 'Dragons' presented and you can get valuable information from their earlier career.

Moreover you can learn a lot about failure, the ingredients for becoming a successful entrepreneur, start up secrets where you can learn really useful information how to start and create a new business. Especially interesting is the part of 'Creative Thinking' where you get information how is the right way to think. Besides this part tell you that you can learn to think creative!

Good ideas for starting your own business

In my opinion this is a good choose for a 'Newbie' businessman! I think it is more easy than other ideas. you can get a lot of money because its last minute so you can get more than a normal babysitter.

 Last-Minute Child Care /Emergency Babysitting
The concept: Everybody know that situation that your boss calls you and asks if you could come as fast as you can. But there is a problem!!! What to do with the children??? No problem!! Just call us! This business is a real useful business for people who have to work or whom babysitter said that he can't come!




This could be another very good idea for making money. I think it can't be hard to be a personal trainer for seniors! added to this you can get maybe 20 pounds per hour or maybe 10.

 Personal Trainer for Seniors (by them too) or
Children
The concept: You are a senior who is not active??? You want\have to change it?? Just call me! I am a young sportive student who wants to earn some extra money. So if you don't want to spend too much money for a professional personal trainer I am the right person for you!



This idea is a really good one! you can make a lot of money I think. You have to check up how the dollar, euro or pound change and sell or buy at the right moment.

 Specialist Car Importer
The concept: I love oldies! so I decided to get some of my favorites! I was searching a lot of time in the internet and after a few weeks I found a site in France. I informed myself about importing cars! I found out that I have to keep attention on the money course! All in all it was really difficult to import that car! If you are also interested in old-timer cars you can call me and i will find the right one for you! Look at this example:


Ebay is the biggest online market in the world and I think there are very much people who don't know how to use it. You could maybe get a percentage of the profit or be paid hourly.

eBay Consultant/Coach
The Concept: I sell a lot of things in Ebay but I often hear when I speak to my friends that they have some difficulties with it. I thought it might be a good idea to start his own business to be an Ebay Coach! If you really need help by selling things at Ebay you should contact me so I can help you!

'Your Idea Can Make You Rich' Introduction

I am reading the book 'Your idea can make you rich' from the Dragons' Den! The Dragons' Den is a group of five people who got very rich by starting their own business! This book will help you to start your own business and give you some useful advices!!! Added to this it will tell you how you have to behave in front of other businessmen. The authors Doug Richard, Peter Jones, Duncan Bannatyne, Rachel Elnaugh, Simon Woodroffe and Theo Paphitis are the member of the Dragons' Den who are really experienced and tell the reader about everything what BUSINESS includes. In my opinion this book CAN REALLY help you but what this book CAN'T do for you is open a new business and choose the decisions you have to make.

to be continued!