FREE online courses on Venture Capital Funding - Major Sections of a Business Proposal - Property and facilities

 

Describe the real estate that the company owns, or the lease that it has for its offices and plant, the size of the plant in square feet, and the price per square foot, the equipment that you have or intend to buy; the fixed assets in detail.

 

The Venture Capitalist wants to know that the plant is sufficient to take care of the growth of the company. If you will have to move out of the plant in a year, the company will have difficulty continuing to expand at a rapid rate. Some Venture Capitalists don't like to invest in companies that have to move within a short period of time. They believe such moves are disruptive and destroy the company's growth.

 

Equipment

Describe in some detail the equipment that you have or intend to buy. Give a general idea of the fixed assets and their value of resale. Describe the total rupee value and number of units that you can produce using the existing equipment. Identify any long lead-time in acquiring machinery. In this section the Venture Capitalist wants to know if your equipment is difficult to obtain. If it is and you reach capacity, the company will have to wait for a long period of time before it can acquire additional equipment in order to increase capacity.

 

Specify if the equipment is complicated and requires a special skill to operate. If so, you will need a special work force order to operate the machines. The question is "How difficult is it to find such a special employee to operate the machine?" Finally, if the machinery is used for a special purpose, it will be difficult to sell. Therefore, its collateral value is much less. All these points are important to the Venture Capitalist.

 

Utilities

Describe availability of a reliable source of electricity, water, communication facilities, road access to factory and offices and other facilities.