Saturday, April 11, 2009

"... And we are being conservative!"


There are many reasons to love the private equity and venture capital space.


Leading innovations, engaging CEO's and stubborn inventors will always make our roles more interesting.

One part I always enjoy is when the financial projections are revealed in all their glory. It can seem as though the Entrepreneur or Business Owner is spending 80% of their time focused on the revenue calculations and only 20% on the expenses.

The result of this focus is the creation of the proverbial 'hockey stick' projections. It is like looking outside and seeing nothing but blue sky.

Often when we meet with business owners, they will draw reference to their financial projections. My favourite part of this, is when they have finished going through the numbers... they look at you and the words "... And we are being conservative" come rolling of the tongue. Not a blinking eye can be seen!

So, if you are a CEO or a founder and reading this blog, be assured that we did this too, when starting Wholesale Investor. Whilst not quite being a hockey stick... our optimistic spirit took over our realistic brains.

If you are a private or professional investor, I am sure you wish there was some way to monetise this statement.

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