Page 192 - Winning The Credit Game Bundle (CK Patrick)

best practices may help optimize your business’s chances of
success and growth, even if you don’t seek investors since these
items are designed to assure venture capitalists that your busi-
ness will grow wildly in the years to come.

#1: DISRUPTIVE POTENTIAL

Venture capitalists tend to particularly want to hear about your
business’s “disruptive” potential. In this case, “disruption” refers
to your business having a business model, method, or tech-
nology that is so unique that it has the potential to “disrupt” the
way business is currently done in your industry. This is why
most venture capitalists are active in the tech space, where new
technologies often fundamentally change the way we go about
our everyday lives. But other new inventions, methods, or busi-
ness models may also fit the bill for “disruptive” potential.
Companies with advantages when seeking venture capital
include:

Those that have invented a new technology which has
capabilities other technologies don’t have.
Those whose products are markedly different from the
competition or offer features not found in any other
product.
Disruptive business models, such as those that offer
significant advantages over existing mainstream
business models in operating costs or customer
experience.

Some business owners who seek venture capital funding may
feel that they do not have the potential to achieve it. If, for exam-
ple, their business is not a tech business. Venture capital require-
ments can also spur business owners to think outside the box
and discover ideas with potential for explosive growth. These
attributes describe businesses that have the potential to rapidly
outpace their competition through innovation and can create the

180