Provide feedback about a classmate new business idea

Provide feedback about a classmate new business idea

Discipline: Business

Type of service: Essay

Spacing: Double spacing

Paper format: Harvard

Number of pages: 2 pages

Number of sources: 5 sources

Paper details:

Provide feedback and recommendations in regard to their marketing pro forma financial statement and/or how they will leverage their funding sources (see attached file).

Share ideas with your colleagues about the trials of trying to raise funds for a business.

Share ways to stay motivated when your initial funding plans are ineffective.

Please indicate the page number in the in-text referencing (Spinelli, 2014,p.5)

My classmate´s new business is a new restaurant in the UAE.

According to the nature and size of my business, Angel Investors and bootstrapping are the top potential source of finance for my venture. Identifying the right business angel investor is to identify quality and secure commitment of capital; it is also a multi-dimensional phase through which I will be creating a market for my venture (Spinelli and  Adams, 2012). Out of many tactics, I will concentrate on the below fundraising connections :

  1. Family and friends: the first who know my qualities and true capabilities are family and friend and this where I believe I can get reliable recommendations.
  2. Industry connections: friends or their networks who established their own businesses in the UAE may help by their recommendations or introductions to find angel investors in my field.
  3. UAE entrepreneurial community: building relationships during regional startup events while asking for advice is an effective way to find other founders, investors or advisors. These groups are available in virtual sites e.g. EntrepreneurMiddleEast.com, MiddleEastInvestmentNetworks.com or Dubai Startup hub (Dubaichamber.com, 2018).
  4. Angel Investor Networks: are membership-based networks that serve by location and industry, they are usually available through many business agencies in the UAE and can provide individual investment recommendations.
  5. Personal Marketing: posting myself in areas where investors can find me e.g. Linkedin, posts in established blogs, personal blogs, social networking, etc.

On another hand, finding the right angel investor who aligns with my business needs takes the effort to present a realistic market and sales projections, for the investor who will find my business idea a good one to trust and commit to ,in order to take an investment decision (Maxwell and Lévesque, 2014),hence I will expect that my business investor(s) will look into the following areas:

  • Investor Relevance: According to my business early start-up stage, targeted industry and the size of my business, investors who have the same market experience will find my business relevant to their strategy as they will likely get more engaged with the idea. This depends on focusing on the right channels of related fundraising.
  • Appealing opportunity: presenting the size of the target market and the new dimension of service/product will explain how the idea is different from other competitors, with projections for future growth and how the applied matrix of success will drive that growth.  The more promising is the indicators the more attractive the idea to the investor.
  • Commercial return: Demonstrating a business executive summary (real data on customer service engagement, marketing, team commitment, and pro-forma financial statements) will clarify the most crucial investment purpose-ROI- and explain future plans to use the raised capital to grow business.
  • Management team: Angels will only invest in areas where they trust are capable of allocating their funds effectively. Introducing my team (professional staff and advisors) my personal and professional background along with the technical knowledge of the business and target community, are very good reasons to justify the investment decision.

(Maxwell and Lévesque, 2014)also, emphasize on the must to developing a relational contract with angel investors characterized by informal relationship, such relation will affect the investor assessment of the risk anticipated with the new opportunity and the unlikelihood to adverse the selection. Reliable communication will also affect the speed and quality of relationship development i.e. the accuracy of information and realistic projections.