The lack of competition , global scale entrepreneurs and other errors at the start, which deterred investors.

In business, the correct positioning of your project is no less important than leadership.

“We have no competitors”

Hear a phrase from the owner is not very nice. After all, you should always keep in mind that the indirect competition exists in any case , in the form of any substitutes. When they began to appear automatic teller machines, indirect competition made ​​them scratch cards . Delayed competition is always : we need only will a new interesting product or service as soon as they appear imitators , pull out a piece of the market. As we began to work with one interesting project on the Internet, I have agreed with the investors, the feedback has been good . However , that is inherent in venture capital , the negotiations drag on for a long time , in this case for three months. During this time, the internet has appeared several projects that were different except that the registration and list of partners .

Often, we offer our clients an exercise in kontrpozitsionirovanie client must tell the difference between Sanchez in his business and business competitors. The best response was: ” Our company produces the same as Siemens (Bayer, Adidas – you fill in ), but we can do it in one and a half times cheaper and twice as fast ! “. If the employer can not distinguish between its rival project to the project , the investment is risky.

Income in 17 years

The ability to position itself not only useful in terms of competition . The entrepreneur must place their project in the chain from research to the final consumer, which will bring the greatest benefit to him . One of our clients came up with its own technology and a unique set of instruments designed for remote Upper Air Intelligence , explores the changing electromagnetic field of the planet. Was created and was successfully tested a prototype of a mobile station exploration sized to accommodate all of the equipment in the cargo compartment of medium-range airliner .

We were surprised that we submitted a business plan for the project justified the need for the construction of the plant for the manufacture of devices , opening an office under a development center in the capital , the purchase of 20 Boeing 737 aircraft and the opening of offices for the sale of services of geological exploration in the South- East Asia and North America and Western . By calculations of the project was to be paid back over 17 years , it does not take into account the cost of operating aircraft. It is seen that in one project connected science , services and manufacturing. It’s not always reprehensible , but there is one ” but”. According to our calculations of the production complex of the supplied components that will be collected in rented premises , and the lease / sale of equipment to large companies will go out for 12-14 months to break even . Then the owner changed the positioning of the project and received investments from the second fund, which we sent it .

No one will embrace the immensity

No one will embrace the immensity, so you should immediately determine what exactly you want to do : bake cakes and sell them , to make dental implants or to install them . Of course, many big businessmen like to create a vertically integrated production and distribution companies , but this can not be the subject of venture capital investment . And even such a business should be carefully positioned , highlighting it profit centers and cost .

In our experience, there was a case when one losing depot , owned a large retail chain has become a subsidiary received its share of management , a set of safeguards for the main company , and the right to provide commercial services on the open market . Less than a year earlier , this loss-making company has turned into yet another profit center holding. Sure, and the capitalization of the entire group of companies has increased markedly. It is not needed to attract investment, issue certificates of business processes for compliance with ISO and buy new company.