Entrepreneurs are idea people. :) But, not all ideas are created equally.
I just read a post by Brock Blake, of Funding Universe, called "Idea That Is Scalable". In the post, he says that when VCs evaluate an entrepreneur's idea, they look for the proportion between amount of investment capital, percent of ROI possible, and the time it should take to exit.
He also mentions the difference between a "lifestyle" idea versus a fundable idea. The main difference being that a lifestyle business will cover the owner's financial needs, but the other will provide ROI that justifies a VC's expense.
There are many reasons for not being approved for funding from a VC firm. When preparing to pitch your business for funding, consider for a minute if the revenue model you are anticipating is enough to bring in a substantial return in a matter of a few years.
If you find that your business fits more into a "lifestyle" concept, but you still lack necessary funds, what are your other options? Feel free to share your thoughts.
We'll also discuss that in a future post... to be continued. ;)
