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Green from Angel Investors: Expectations Soaring
Do you have plans to obtain capital from angel investors? The economy may be on an uptick, but investors haven't forgotten about the sting of the late 1990s. Last year, 42,000 angels plowed $18.1 billion into early-stage companies, compared with a mere $304 million invested by venture capitalists, according to a recent study by the University of New Hampshire's Center for Venture Research. Don't let that fool you into thinking that angel investors are pushovers!
Most angel investors today are only interested in companies that will generate positive cash flow in 12 to 18 months and they want to double, quadruple, or increase their investment tenfold in five years. These investors require well-researched, thorough, high-quality business plans and financial models before considering an opportunity. Avocado Group has the knowledge, desire, and skills to prepare you for attracting angels and can help you exceed these soaring expectations.
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Got an Excellent Idea? Green Means Go!
Are you fortunate enough to be on the cutting edge of research or inundated with ideas, but are unsure of how to transition from idea to business opportunity? Securing a patent can be a costly, time consuming process and many innovators expend a great deal of funds to protect an idea before performing market research or determining the idea's feasibility.
As an inventor, you have a lot of control over your chances of success. By studying and eliminating as many uncertainties about the project as possible, you will have developed a solid strategy on which projects to pursue. If you only engage in projects that have a good market potential and that can be made cheaply enough to keep the sale price within what buyers will pay, you have improved your chances for success significantly.
The United States Patent Office received over 366,000 applications in 2003, yet only 5-10 percent of all intellectual properties ever become commercial products. If you have an idea you have patented or wish to protect, you should ensure that it can be successfully commercialized. Avocado Group can help you assess your opportunity and capitalize on its potential so that your investment does not go to waste.
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The Solution without Dilution: Obtaining Green from SBIR/STTR
During the last quarter of 2004, Nick and Amy spent time in Washington, D.C. and Research Triangle Park learning more about the federal government's commitment to creating new businesses with its non-dilutive funding for innovative ideas and research initiatives. SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are two competitively awarded, three-phase federal government programs that granted over two billion dollars last year to the validation of ideas and creation of new businesses.
In an effort to increase the number of small businesses and college and university faculty in Kentucky that participate in these programs, the Kentucky Science and Engineering Foundation (KSEF) offers an SBIR/STTR Phase Zero grant (up to $4,000) to enable small businesses and faculty entrepreneurs to defray the costs of preparing a high-quality, competitive SBIR/STTR Phase 1 grant proposal. Avocado Group welcomes the opportunity to share our knowledge of this process and our skills in SBIR/STTR grant writing to help you apply for these grants
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Keep the Green Flowing: Prevent Those Cash Flow Woes!
Failing to plan is planning to fail. The beginning of the year is an excellent time to take a look at where your business has been and where it is going. For existing small businesses, you understand that planning and budgeting is vital to your success. Having the ability to view and analyze your cash flow helps you to successfully manage your venture today and into the future.
Developing a budget and financial plan can help you increase sales, determine how you should spend your money and measure progress, understand cash flow needs, and allow you to have better control over your business. If you are an entrepreneur having problems with your business that you can't seem to diagnose, it is helpful to look at your financial position and perform ratio analysis. This activity helps you benchmark your performance against similar companies in your industry. All of this planning and analysis may sound a little daunting but it is necessary for the survival of your company. Avocado Group can assist you with this process to help ensure that the upcoming year is a fruitful one.
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Dreaming of Entrepreneurship?
A survey performed by Capital One and Consumer Action in October revealed that the American entrepreneurial spirit is alive and well, finding that 40% of Americans dream of owning their own business. The primary reasons for this option were "to do what they want to do" and "to be (my) own boss." Additionally, a Wells Fargo study done in November revealed that the great majority of small-business owners, 86%, say they still would still choose to own their own companies.
Given that you're reading this newsletter, it's likely that the entrepreneurial spirit is alive in you. Those leaving corporate America, women, the young, and baby boomers are all taking part in entrepreneurial endeavors today. There may be funds available from the SBA or Kentucky's Commercialization Investment Funds for you to help turn your entrepreneurial dreams into a business. (See the links to the right for more information. )
Are you among those who are still afraid to take the plunge into entrepreneurship? If so, Avocado Group can help connect you with the right people, extend your ideas, identify capital resources, perform market research, and develop a thorough and articulate business plan you can use to achieve success with your entrepreneurial desires.
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Avocado Group, LLC
183 Coral Ave #2
Louisville, KY 40206
http://www.avocado-group.com
Nick: 502-876-9148
Amy: 502-417-3613
info@avocado-group.com
© 2005 avocado group, llc
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