Online Campaigns, Online Advertisement and Common Sense

Strategic Investment: Games Of The Big Business Part 2

If you would like to interest venture capital trust and to prove to its owners that the given firm is reliable and favorable object for investments, it is necessary to prepare the detailed business plan. At its development it is necessary to show heightened interest to the sizes and market attractiveness.

The second important factor of the business plan is uniqueness of the offered investment project (how much and in what). Uniqueness raises chances of success and it deserves to become the main line of the business plan. Though about the plan don?t speak aloud, but venture capital trusts like to invest in exclusive projects, i.e. in that business where there are no competitors.

In classical understanding the venture capital trust is terribly interested in the high stock quotation of the enterprise. Its basic income is an exchange rate difference between purchasing and sale of shares blocks. However in some countries such market model doesn’t work. The stock market, as a matter of fact, isn’t present, and promotion of shares of the majority of the enterprises is unreal business, liquidity of stock market is absent. Therefore the basic strategy of the venture capital trusts investing into such enterprises is simple: purchasing of a large packet, active participation in enterprise management and consultation of its top management, a company value addition (company “cultivation”) and sale it to the foreign strategist in 7?10 years.

For strategic investors the best direction of investment activity is represented by the mid-size enterprises. The most acceptable form of an investment of means for the strategic investor is cooperation management enterprise creation.

As for the company-lucky beggar which has caught the gained strategist it should not worry about fast return of investments and completely concentrate on improvement of efficiency of the business. It can spend for it some years. And its strategic investor will constantly advise, search for partners, to help with management. But it will be later when the company will rise on feet. However on an initiation stage of formation of business it is the most simple and effective way.

Usual foreign investors invest the capital in that enterprise which for somestably works in the market, is already profitable which already has a branch network in the country, the enterprise customers.

However if the country is not stable and shows the following negative factors, such as: macroeconomic instability, the inflation high level and high corruption. And also absence of strong bank system, neediness of currency holdings and tax pressure. Here also it turns out that direct foreign investments to the foreign countries will be good only for those investors who like to risk, any way this is the personal investment decision of every particular investor.

It is very reasonable that government, despite this recession is not abandoning to help small businesses. And small business grants can be a true helper today.

But, of course, you should remember that today the fight for small business grants as well as for other types of grants is harsher. This is natural – more businesses need them. So before you start your battle for the small business grants, please make sure to check out this blog for more helpful tips about grant industry.

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