Sánchez-Ocaña Alejandro Suárez. TIME-sector employer since 1998, CEO of Group Publispain, the Network of Blogs Entertainment Networks SL Blogs and Lazer President Inversora Foley, Director and Founding Partner of Yes.fm, consultant and investor in several companies in innovation, new technologies and internet.
I guess it will be the crisis, although I think that is not only that, but these past weeks I have had my hands on over 30 different business plan. Too. Some good, but even many surrealists.
It seems shocking that there is such a search of money, which I think is tremendous real conclude that many of these projects do not really need money. I really said that much of a project having begun to walk and not just a BP on paper. It is important to see the ability, even without money, begin to shape a project and not just focus efforts on securing the enterprise funds and purpose.
I wanted to write this post in order to discuss the main problems that I do not reject or assess an investment possibility. Some are very obvious, but too frequent.
The other day having lunch with one of the best known business angels in Madrid, and we mentioned how surprised we were coming to our power projects, which, without being developed, without having more than a business plan on paper, without even having demonstrated capability of entrepreneurs, and ask for entry, without showing any figures xxx.xxx Euro up, many of them for "international expansion" (of a company and sometimes even there).
No I want to invest in a startup to expand internationally when the reality is not so. Only 3% of the Spanish projects actually succeed in leaving the country, before even thinking about leaving Spain you have to think if you are able to mount in Spain!
On paper, a project that you are not able to mount in your country is hard for you just ask in the first phase money already planning to expand.
Other things I have taken back these days on several projects.
- Similarity: For example I have had projects on the table 7 geolocation summer. Too difficult to choose winners.
- Exaggeration figures inflated. Working in online advertising since 1998 and working with all agencies. If your forecast for the early years from scratch, is three times my annual sales with millions of users: something goes wrong.
- Projects that do not value competition: There are dozens of projects that do not provide a competitive sector. Only players present and appreciate the fact there is no one searching for new players to appear.
- Single Unit Publicity: In the same food the other day we mentioned that advertising can not afford everything. If you can pay for content, but it can not mount a huge structure on the basis of projections of the advertising market that are not real, or that even so, its just not valued in the number of new publications that are to share such growth. In some cases 18% vs market growth of 50-60% annual growth media.
- Self: Startups that are self-camouflaged under a "xxx.xxx get up, I get a monthly salary of 5,000 euros and poor income and earn that money." Forget it, there are fewer and fewer business angels who put their money on approaches that will only benefit you, to invest in someone, and that is not romantic, we want to make money or at least medium-term overall value.
- I need: When asked where are you going to spend it, not give you real answers. Want to 100,000 euros, or 50 and not know it spends to generate value. Spend on rent and get a salary is not enough. If needed for marketing, need and want a media plan, not a batch of 100,000 euros for that, I believe that you know and appreciate how and where to spend.
- Little attention to the promotion: Project staff, with a cargo of 60% and only 7-10% in advertising and marketing. It is not real.
- Professional power point and pdf: Excellent presentations and business plans, unreal, without any possibility, but they would make any arrangement with Business Plan complete, but well defined and developed based on false premises. People living to the Business Plan, and make it fabulous, but do not seem to be equally able to develop it even seems to be viable.
- Cost Technology: 70% -80% of the Business Plan in recent months do not value the investment and operating cost of technology and surprisingly not updated in 24 months while view more growth is expected: it is not real, it costs money to grow especially in technology.
- The Megaidea: There are entrepreneurs with innovative ideas to consider worldwide. Forget 99% of cases. Your idea is not unique, not revolutionize the world and will not change. Often it is not the idea, which is worth money and trust is the team, the ability to develop. The idea, possibly this invention.
- Clones: I must have seen 6-7 or ideas based Twitter clones. Yet none has told me that business model to follow, or they can compete and beat the original, I have not even seen yet, as is or as it will monetize the Twitter. For fashion ideas.