Bringing Focus Into The Equation
When considering the business strategy for the start-up fund, ask this crucial question: where is the existing expertise? For example, firms like Fortress Investment Group concentrate on underperforming assets in real estate. Lighter Capital specializes in early stage to mature SaaS companies. As a principal of the fund, be sure to establish operational parameters, including industry type, location, portfolio health, management buy-outs or mergers and acquisitions. Defining the initial strategy is crucial in determining the overall direction and goals.
How The Fund Will Grow Over Time
After determining the creative structure, now is the time to evaluate the specifics of project strategy within the firm of a business plan. A sound plan will first establish a mission through executive summary – explaining expected expenditures and profits over any given frame of time, and which arenas are appropriate from which to raise capital from investors.
Secondly, the plan should outline internal and external team structure. This step should prioritize positional competency with regard to acting consultants, advisors, attorneys, and subsequent authorative delegation. Principal titles, capacities, and management officers should be chosen with careful compliance and due diligence.
Lastly, along with an established name for the firm should come a concentration on customer relationship management, staffing protocols, office management, and other back end, in-house functionalities.