Raising Finance for Business Growth

Getting the right type of funding or capital for business growth can make a big difference to the success of your business. The most suitable sources and types of capital for your business will depend on the nature of the project, amount required, type of business, market characteristics, business growth ambitions, size and timing of business cash flow and stage of business growth. This will generally determine whether the most appropriate source of funds is through debt, equity or organic growth - funds from within the business. Whatever the preferred route, it is vital to create a compelling business case for potential investors - that is, the company must be "investor-ready".

"Investor-ready" is a much-used but frequently misunderstood phrase. In general, investors will want to see:

  1. A realistic investor ready business plan (featuring a detailed and realistic business strategy of current and future plans).
  2. Realistic achievable financial forecasts and potential for high returns on investment (ROI).
  3. Excellent business growth potential with rapidly growing markets.
  4. A strong management team, capable of delivering the plan.
  5. A comprehensive understanding of the target market, including market size, trends, pricing strategies, accessibility, growth potential, demand for products and services, and committment to business development.
  6. A sensible valuation of the business, the equity available for the investor and a strategy for their exit.
  7. Efficient internal accounting and financial systems and signed off Accountants reports are a must.
  8. An explanation of how the investment capital will be used.
  9. The unique selling points (USPs) - in product, distribution, profit, returns, management, location, contacts, technology, barriers to entry, patents or other unique competitive advantages.

    Business Base can provide guidance, advice and practical help with your investor-ready programme. In addition to this, our extensive contacts within the professional services and investment community means that we can also help with introductions to potential partners. Why not call us to see how we can help you?