In preparing themselves to make a deal, entrepreneurs improve their skills and hone their talents. Whether or not the deal succeeds, entrepreneurs benefit from the deal experience.
From the moment they set out to find investors for their business, entrepreneurs know that they risk the possibility of failure. As with all risk, they also know that they can take steps to reduce this possibility and enhance their chances of success.
In preparing themselves to land a deal, entrepreneurs have to make sure they understand their business thoroughly and that they have details at their fingertips about everything from financing and supply channels to competitors and sales projections.
In addition to gathering information, entrepreneurs can also educate themselves about the way that potential investors regard similar businesses. Through mentorship programs and advisory services, they can obtain valuable insights from other entrepreneurs who have raised financing and landed deals of their own. Entrepreneurs can also determine what investors look for in a business and how they can make their own businesses more attractive to potential investors.
KPMG Enterprise conducts customized day-long think tanks for entrepreneurs. In these sessions, entrepreneurs and their management team can tap into the expertise of industry-specific advisers and specialists in areas such as tax, marketing, financing and strategic planning. These individuals will review an entrepreneur's business plan, challenge the entrepreneur's business model, revisit the entrepreneur's goals, assess the challenges confronting the entrepreneur and help the entrepreneur to address them.
Ultimately, entrepreneurs learn by doing, and sometimes the best lessons come from making mistakes. As long as entrepreneurs learn from their mistakes and remain open to new ideas about running their businesses, they'll improve their chances of landing a deal.
After all, investors may challenge entrepreneurs to rise to the occasion. But they share the same ultimate objective as all entrepreneurs: They all want their investment to make money.
Listen to Dialogue in the Den
where we discuss with entrepreneur Ryan Foley how his experience in attracting investors helped him to become a better entrepreneur.
Brought to you by KPMG EnterpriseTM
By Chris Van Staveren, Partner, KPMG Enterprise
KPMG Enterprise. Trusted business advisers to the Dragons.
The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG LLP. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
Posted on Apr 4, 2011 11:02:42 AM