Execution risk is the biggest risk investors have to face. The market evidence will either demonstrate the proposed investment has a legitimate opportunity or it will not. If it does, the question is always the same: if the capital is deployed will the promoter/sponsor be able to pull off the deal or will the deal be a disaster because of poor execution and management? Your business operations plan has to answer this to get funding to be sure but the task doesn’t end there. Your operations business plan has to be a living document that is updated each month of operations or you face the reality that you are not being an efficient steward of capital. Updating your operations business plan takes some effort. Our INVIZEN IT Real-Time Operations (RTO) Business Plan program answers this call and hopefully gives you some amplification on what you should be doing with your business planning.
I admit our approach is more than what most business managers and promoters want to do to manage risk, but this is the future of business. We have to be able to measure employee productivity to meet our monthly income production goals. We have to have real-time reporting to recognize problems and emerging opportunities. We have to manage liquidity in a way that protects our deployed capital. We have to understand the risks that technology continues to create in terms of additional forms of competition.
If you plan on obtaining capital financing you had better get used to this idea. This is what is required if you don’t want to be part of the more than 4 out of 5 capital financing failures statistic. The INVIZEN IT PowerPoint slide show is a brief presentation on creating a business plan using the INVIZEN approach to maximize your opportunity for obtaining capital financing. If you aren’t doing these component tasks and meeting these requirements, then prepare yourself for a long and laborious hunt for capital financing.