Small businesses and start-ups are always looking for the best funding routes and most are aware nowadays about those routes or have extensively researched them via the internet. There are a myriad of finance , invoice factoring, peer to peer, personal loan, venture capital, start-up capital companies not to mention the option of seed funding, crowd funding or other investment types all trying to catch their attention and engage with them to satisfy their funding requirements. The trick is to engage with a proven finance company who have the best structured solution at the current stage of their businesses development. A large number of small businesses have grown successfully to their current point ,without needing outside funding, but now either need or want to expand to meet market demands. Many will thus be entering a new arena and will want to be absolutely sure that they go down the best possible route and avoid unnecessary risk in the process.
We have been working with and assisting several small businesses ,looking for small business funding , over the last 12 months who have needed funding either at the start of their business adventure or to develop their current expanding business. Their circumstances have all been different, but a number of them have been looking for either seed funding or funding for a new project or product launch. This can be complicated, and some of the difficulty revolves around getting a potential investor to understand the full potential of the investment along with their return and possible exit route. Investors are usually being presented with several different opportunities on a weekly basis and will only invest in irresistible business opportunities. It is up to the business owner and their advisors to make their own opportunity clear, concise and highly attractive to any potential investor. Investors are generally highly experienced and will have access to information and advisors across a wide variety of business sectors who will have seen and found flaws in many opportunities before. The more specialised sector specialists will of course be totally focussed and already working closely with experienced experts and advisors on their current investments.
One of the most important things is a clear , accurate and precise business plan that is totally understandable by someone with no knowledge of the business, its competitors or even the sector. It is very easy to produce a document that makes sense to everyone internally ,along with great enthusiasm, but is confusing to potential investors who don’t know the sector and its terminology. The plan has to flow and clearly illustrate exactly what is going to be be achieved with an injection of funds. This is of even greater importance if an external investor is only going to be involved for a defined period or with an individual project. It is also essential to have accurately calculated the funding and how it will be utilised to achieve the set targets and objectives. A shrewd investor will like to see a detailed and well thought out financial plan that allows for a few realistic hurdles having to be overcome along the way.
We have helped business owners to refocus their approach to looking for business funding and to manage their route to the right solution more effectively.
