I am currently working closely with a number of clients in raising funds from a variety of sources but all have been made easier by following the ‘rules’:
- Be clear in what you are asking for and in the explanation of how it will be spent. Whether this is through a detailed business plan or expressed in a meeting, it is vitally important to get this message across clearly from the outset. Remember, be realistic. You may need to plan in milestones that you can achieve to get access to further funding; if it’s £250,000 that gives you an end game, can you get to Phase II with £50,000? This is more attractive to investors and funders!
- However small the application is, a detailed and achievable set of integrated financial forecasts is a must to convince a funder that this is a viable option to see a return on their loan or investment. Once more, remember to be realistic. Some sensitivity analysis may assist in helping a funder and investor. During due diligence they will probably do their own sensitivity anyway!
- Timings are crucial in pulling together any request for funding. Every business should be tracking their own cash flows in order to spot a potential problem before it arises. Finance can take time to complete, and being aware of the company’s requirements in advance of an issue provides confidence to finance institutions and investors alike. Don’t leave it until the last minute; in thecurrent economic climate, everything’s taking that little bit longer!
- Put your money where your mouth is! Be prepared to be asked for a personal guarantee on behalf of the company. This is becoming more frequent with every funding application, and if you don’t believe in the project, a provider of finance won’t either.
- Get Sedulo involved! By applying our wealth of experience to your application, we can manage the process from start to finish, leaving you to get on with your day job. There are numerous ways to fund a project; make sure you have spoken to us so we can source the most viable funders for your own situation!
If you would like to discuss how finance might assist in achieving your business goals, give me a call on 0161 236 9077.