Troubled economic times can bring all kinds of new projects. British Airways, bellweather of UK economy to a good extent, wants to outsource the operations for its flagship ba.com website as part of a major cost-cutting exercise.
It is estimated that ba.com takes about £30 million per year to run, and that BA is looking to save a big chunk here. BA Travel Booking and Servicing functions of ba.com – a major part of the ecommerce programme for BA’s online platform – will be outsourced to a third party under proposals being evaluated currently.
BA already uses third party vendors to for online FAQ service and payment system. Now even more will be outsourced, or maybe even sold, depending on how the proposals come. This blog post has more info.
In this post, we will answer 5 Questions on Venture Capital Investment, that we have seen from early stage companies seeking Venture Capital funding. The above video also expresses similar views.
Q1: How does Venture capital work?
Answer: Venture capital is the term used for unsecured equity funding by specialist investment firms (often focusing on a few sectors) in return for a part of the equity in the company being funded. Venture capital investments carry considerable risk because they are unsecured and it is estimates that only 1 in 10 early stage companies generates good profits.
Q2: How much equity stake do VCs usually take?
Answer: The most common equity stakes taken seem to be in the range of 20-50%, which ensure that if the company succeeds, then the VC makes a good return. Over 50% equity investment by any one VC is rare because the risk increases significantly.
Q3. What do a VC expect in return for the equity funding.
Answer: Because only a few ventures actually become profitable, a venture capital company looks for a high return (a compound return of 25% or more) on each plan, largely generated by growth in the share value of the invested company through increasing brand name and also increasing sales. Most VCs also seek a representation on the company’s board, though it is not a guarantee of producing success from the venture. A good VC would be a partner with the entrepreneur. So personal dynamics are very important. VCs help with raising additional money and financial strategy and also executive team strengthening.
Q4: How much time does it take to raise venture capital?
Answer: It takes about 6 months. Raising capital will take longer than you imagine. Plan for 6 months, and think beyond initial funding. Set realistic milestones, and keep planning for future capital. Learn from others, including other business owners and investors. If you are looking for funding, you have to be patient. For every VC who invests in your venture, there will be 10 VCs who would say no to you.
Q5: How should we approach the business plan writing?
Answer: When it comes business plans, you need a crisp 1-2 page executive summary and it must show a good story of what you want to achieve and what resources you have and what you are looking for. The more you precisely know your Haves and Have Nots, the better your business plan. So don’t get trapped in a 50 business plan that’s full of all kinds of data and it never completes itself.
A long business plan is not a good idea if the same message can be expressed in a couple of pages. Don’t confuse number of pages with clarity of thoughts. Go ahead with a business plan that’s brief and present a coherent logic that interests to the VC. Be honest on things you don’t know. Investors appreciate people who are transparent.
If you are looking to write a business plan, then use this website: BusinessPlan247.com
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1. ABOUT
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Established in 1987, FGM Printers London are based at London Park Royal (NW10), and thus easily accessible to all businesses in London and and surrounding zones. FGM Printers have their design and print facilities under one roof, enabling them to work faster with higher flexibility.
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2. PRODUCTS & SERVICES
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FGM Printers handles all printing requirements, serving clients in the UK, with top quality printing and publishing services.
* Origination — Producing typesetting, design, film and plates.
* Printing — Full colour brochures to single colour business cards, from forms to continuous stationery.
* Finishing — Cutting, collating, padding, saddle stitch, booklets etc.
* Print Management — Storage of files, internal control of stock.
* Delivery — By van or overnight couriers. Continue reading →
Google has introduced Gmail voice and video chat, which lets you have free voice and video conversations right from within Gmail.
Many of us have already been using Gmail’s voicemail feature to send them to email ids (very useful), and this voice and video chat will make it even better.
Checkout these Google blog posts for more details:
With the worldwide economy looking a bit glum, it is expected that a record number of people will be try to head for various schools in the next 6 months, including one of the all time top b-schools: University of Chicago’s Graduate School of Business GSB.
But that school’s name is going to change.
The GSB announced on Nov 6th the receipt of a gift valued at $300 million from alumnus David Booth ’71. In appreciation, the university will rename the school to “The University of Chicago Booth School of Business.”
“The school plans to use the money for several new initiatives, including aggressively attracting and retaining star faculty. Other uses being considered include developing new faculty groups in academic areas not normally associated with business schools, expanding existing research centers, and launching ambitious programs to better leverage the school’s intellectual capital.
The gift may also be used to expand the school’s international presence beyond its existing campuses in London and Singapore.”
This also creates a new record for the largest gift to a b-school… breaking the previous record of $105 million given to Stanford GSB by Philip H. Knight in 2006.
Troubled economic times can bring all kinds of new projects. British Airways, bellweather of UK economy to a good extent, wants to outsource the operations for its flagship ba.com website as part of a major cost-cutting exercise.
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