Question:
If I have a good idea but not a
business
plan, and if I do not feel that
I am qualified to devise a good
business
plan, is it okay to pitch my idea
to investors with the notion that
the business
plan could be developed after the
seed funding is received?
Answer:
It depends on how much you need
and what for. Give us the
answer to this and we'll be able
to help more.
It depends
on how much you need and what for.
Unless you have a patent, you need
to finish a business
plan before investors will even
give you the time of day. And
if you do have a patent, you need
to finish a business
plan so investors will take you
seriously.
You propose
what you want in your business
plan and investors will decide what
you get. You don't like what
they offer, you don't have to take
their money.
Too many factors determine this
and you haven't given any real information
for even a speculative answer to
either of these questions.
CEO is at the absolute top of the
corporate power structure. President
is another title for such a position.
However, when one is titled
president and another is titled
CEO, the president answers to the
CEO. How a person can hold
both titles is because the CEO can
hold any other title they want.
Usually it means these titles were
held by different persons and now
one holds both.
Very carefully. There aren't any
rules. The valuation you establish
for the company will be arbitrary.
Obviously, the further you are in
prototyping (proving the business
model) and the stronger your management
team, the more leverage you'll have
in arguing for a higher valuation.
You would do well to have someone
experienced in such matters at your
side or at least mentoring you.
Depends if the seed investor is
your dad or your CEO. I don't know
that there is a typical seed investor.
Well, the latest issue of Business
2.0 counsels not to bother writing
a business
plan because nobody reads them.
My experience suggests that's probably
true in the sense that few sit down
and wade through 60 pages of marketing
blather and pipe dream financial
projections. But you will need something
to show the investors that demonstrates
the brilliance of your idea, the
depths to which you've thought it
through, and the validity of the
revenue model.
Yes, put it in the business
plan. Your plan should include a
"use of funds" section
which will outline your personnel
outlay.