Q:
I’m the co-founder of a daily deals website aimed at men. We launched a year ago. We raised funds to start and grow the business from friends and family. This has given us the tools to reach 250,000 members so far. We now want to invest more in advertising, branding and differentiating ourselves from Groupon and LivingSocial, but we need funding. I’ve been told that it can be detrimental to approach VCs too early. Is this correct, and how do I know when the time is right?

We ask Fergal O’Mullane of Conduit Consultancy, for his Advice.

VC’s come in different shapes and sizes, providing investment to businesses at various stages in their lifecycle and that investment can transform their fortunes.

However the timing of your approach is important in so far as you need to ensure that you are fully prepared, with a clear and compelling value proposition that is supported by a comprehensive plan for achieving your vision for the business.

If you go in too early you risk wasting a considerable amount of time and energy and end up with nothing to show for it, or worse still you may get investment, but the lack of a well thought out plan could result in missed targets and ultimately result in you losing control of your business.