Business, Corporate, & Strategic Plans to raise Private Equity Finance via Venture Capital & Bank Loans with Profit Improvements studies and full Management Audit, providing Financial Ratios for Control to achieve Corporate Turnarounds.
The Deadly Statistics
Two Deadly Statistics Exist:
Number One: For more than seventy years, within both the USA and the UK, it has been recognised that between 80% and 90% of all new-start enterprises fail totally within three years. Next to nothing has been done to remedy such a significant level of economic wastage, other than to attempt to mask the reality by altering, periodically, the way in which the statistics are reported. Indeed, recently I was informed by a US source that after five years from inception, around 95% of all new-start enterprises will have failed.
Number Two: Although most Venture Capital Operators will tell you that there is no shortage of funding (which is true to a degree), nevertheless, it appears to be the case that the success rate for most enterprises in achieving such an investment has been stated to me to be only around 3% of those who eventually manage to make a credible application; and of these few successful bidders, the eventual outcomes suggested are that: one-third will not do too well; one-third will perform adequately; and the final one-third will out-perform all others. To summarise that point, this means that there is a 97% rate of failure in seeking such venture capital support.
These disappointing statistics were confirmed personally to me by a very highly-placed Venture Capital Executive from one of the leading international organisations in the field (principally covering the UK and USA) who was personally always hoping for better presentational awareness from those who made applications for funding, and he informed me that such outcomes seem to have remained consistent over the years, possibly because the majority of applicants who had failed had relied mainly and even solely upon advice from their auditors who themselves might have had no actual experience of the venture capital field whatsoever - and, as clients of the auditing firm, had often paid quite exhorbitant fees for presentations which had very little hope of ever winning creditable or adequate funding support.
The reasons for this situation are explored and presented within the upcoming Ecourse and are generally, understandable. The Ecourse is designed, therefore, to assist Clients avoid failure by following a tried and tested approach which is laid out more like a “flight simulator” rather than the type of “747 flight checklist” approach which most of the business planning advisory books seem to advocate.
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