mentoring + money = success

A winning formulae for early-stage technology companies includes mentoring says NESTA mentor, Alan Edwards.

In his recent article on the NESTA website, Alan very wisely talks about how entrepreneurs (and those who investment in them) should make sure they have mentors who are able to provide advice on the basic elements of running a business but who also have sector specific knowledge.

He goes on to explain that given seed funding, early stage businesses have a limited time before that money runs out. To get another round of funding, they have to prove that they have achieved their year-one objectives and are capable of managing any resources awarded to them. All of this on top of coping with the fundamental issues of starting a business. Mentors can help with making judgement calls - helping to ensure that the business remains focused and on track.

But where do you find a mentor? Hopefully the below links will be a starting point in your search...

NESTA have a network of over 200 mentors to provide expert business advice

The Unit is a business incubator centre in Leeds that provides it client businesses with a pool of mentors

Forward Ladies is a business Womens' network and support group with a mentoring scheme

Mentor Bank run by South Yorkshire Investment Fund and has over 450 mentors

Wisdombank

Top ten tips on how to attract investment

Needless to say you’ve come up with a great idea and all you need is some money to make it happen. Here are my ten top tips on how to attract an investor:

1) Come up with a persuasive elevator pitch that captures the essence of what your idea is and what problem it solves.

2) Demonstrate passion and commitment: an investor wants to know you are going to put all your energies into making your idea a success.

3) Research your market. Make sure you have validated that there is a demand for your product or service and can quantify the market opportunity.

4) Know your competition. You are out to steal their lunch, so make sure you can articulate the benefits of your solution over theirs - and remember no competitors equals no market!

5) Start selling as soon as you can. The quicker you prove your value proposition and can start generating revenues the better – real customers are you best friend when it comes to raising finance.

6) Write a business plan. Your financials projections should be based on realistic assumptions and don’t forget to say what you will use the money you are looking to raise for.

7) Acknowledge your limitations and explain how you intend to overcome them. You may not be the finished item and be honest about the challenges you face.

8) Practice makes perfect, so in developing your investment pitch rehearse, rehearse, rehearse.

9) Be persistent: You will have to kiss a number of frogs before you find your prince and typically the process of finding an investor can take six months.

10) Be choosy who you accept investment from. Do they bring anything other than money to the party? And remember you are going to have to work with them, so you need to be able to get along.

Hook a Business Angel

Do you know how to write a business plan and hone your executive summary in order to get the attention of an investor?

Find out how potential funders will view your business plan, what they look for, and how to ensure they get beyond the first page at the Connect Yorkshire’s next workshop.

Practical Business Plans and How to Hook an Angel

Wednesday 2nd May 2007
The Headingley Suite, Crowne Plaza Hotel, Wellington Street, Leeds, LS1 4DLN
4:00pm for 4:30pm start, finishing at approximately 6:45pm

This is the first workshop in Connect Yorkshire’s forthcoming Investor Readiness Programme in Leeds. Enrol on all or any of the free events and benefit from our unrivalled expertise in helping technology and knowledge-based companies, like yours, raise finance - whether bank, grant, loan, venture capital or business angel.

The programme is a series of six free-of-charge workshops, all to be held in the evening in Leeds with a buffet.

If you have a great business idea but face a funding gap these workshops will help you protect your idea, refine your business plan, hone your sales pitch and, generally, make the most of your proposition. Maximise your chances of raising finance and do all you can to ensure your business achieves its potential, register now for all or any of the workshops.

We look forward to seeing you there!

Listen in

We like the SmallBizPod, a podcast for small businesses, start-ups and entrepreneurs in the UK.

The latest podcast examines the European technology/web sector and the state of venture capital on the continent with Alex Vieux, publisher of technology business magazine Red Herring.

It's definitely worth a listen...

I'm blogging whilst on Myspace, YouTube, Facebook, Bebo, Linked In....

Victor Keegan of The Guardian wrote an interesting piece on blogging in yesterdays edition.
In it he discusses a survey by Technorati indicates that the expand of blogs and bloggers continues, with an estimated 70 million weblogs! However the uptake has been at a slower rate than antipicated and that blogs haven't taken off in the way that social networking site such as Myspace have.

With over 170 million members of Myspace and 5,000-plus videos uploaded to YouTube every day blogging is lagging behind. Victor sees this as a preference to communicate directly with others who have similar interests and opinions rather than just sticking a weblog out there in the internet universe for any man and his dog to read. We couldn't agree more.....

Connect Yorkshire has recognised that online networking is a powerful force and will soon been provide busy entrepreneurs with MyDealMaker. The portal will be an online networking space that will provide technologists and investors with a way to make contact and forge deals. It will have with all of the web2.0 facilities you could wish for! Watch this space.

Join the Club

Reducing your carbon footprint has become a priority for many people in the UK and it seems investors are as keen to pump cash into all things green.

We noted that Whizzgo, the pay-as-you-go car hire business has been in the news again this week - this time with the launch of the scheme in Sheffield.

Whizzgo's concept is to provide cars to hire by the hour, at short notice, within a few minutes walking distance of a drivers home and workplace. By offering a car club service that is convenient giving up your car is now becoming a real alterative.

Managing director Charlotte Morton pitched for funding at the Connect Yorkshire Investment Forum in November 2005 and since then, Whizzgo has netted quarter of a million pounds worth of funding from Yorkshire venture capital group Viking Fund.

It seems other investors have recongised the potential of the car club phenomenon and we noticed that Streetcar the UK-based self-service car rental company, raised £6.4m (€9.5m) from Smedvig Capital this week.