Are you currently trying to raise finance for a family business?
First, make sure you have a very clear strategic plan for your specific business. To help, here are eight simple considerations for you:
- What Products or services are being sold?
- Who will buy them now and in the future and why are they being bought?
- What is the market profile and perceived competition?
- What impact Social, Economic, Political and Technology factors can have on the business?
- Who will be doing what within the business – is the culture that exists based on the values and vision?
- Do you have detailed financial figures to demonstrate sustainable, profitable growth?
- What investment or funding is required and what is the most efficient combination that meets the needs of the business and its owners?
- What does the business want to be famous for?
From my experience in banking, I regularly found small business owners identified what they wanted funding or investment for first and then built a plan in support of this but I don’t believe this is the right approach.
In true terms, investment means giving up a stake in your business in return for cash coming in which will need to be repaid at some stage in the future. As such the Investors driver is return on investment whilst that may not be the priority for you, the business owner.
By setting out what you want to achieve first and documenting what that involves, you may find that investment may not be needed.
A robust plan which is independently facilitated is likely to provide you with more choice which I feel is really important.
If you need any further advice on raising finance, please don’t hesitate to get in touch.