Small Business Venture Capital Investments: What You Should Know
Section 12J investment funds are an attractive option for investors. When first created during the mid-1990s as part of the Income Tax Act, Section 12J was a well-intended, but unwieldly, piece of legislation. During 2010, we gathered collaborators – including SAICA, the Banking Council, SAVCA, and more, to work on re-engineering the legislation. Eventually, amendments to Section 12J were gazetted and, nowadays, it’s hugely improved. On this week’s The Money Show with Bruce Whitfield, we outlined the ins and outs of Section 12J and put together some guidelines for how you can spot the good, and the bad, small business venture capital investment opportunities:
How to write the right kind of business plan
I’ve recently read through oodles of business plans, with a sample of ten showing me that: 4 were applying for growth funding; 2 were applying for innovation funding; 2 were looking to fund operations; 1 was looking to fund their business through a share acquisition strategy, and 1 was looking for acquisition funding.
But what makes a business plan truly effective, and just how important are they? For funders and interested stakeholders, business plans are important for evaluating a business’ investment potential. But, unless a business plan has right kind of components; is implemented in the right kind of way, that’s customized to be relevant to its purpose and is – always – a working document, it’s useless. Your business plan should be an introductory document, that invites potential funders and investors into a conversation with you, whether that be a casual meetup or a more formal meeting. It’s an important document, so don’t rely on templates or external specialists to write it for you. The reality of a business plan is that it won’t roll out in real life, but it will serve as a working guideline. On this week’sThe Money Show with Bruce Whitfield, we considered what goes into writing the right kind of business plan: