For Australian Companies Seeking Venture Capital, Angel
Investors or Private
Equity!
If you can clearly demonstrate the strengths and weaknesses
of your business model and cover issues such as cash burn
and bankruptcy remoteness, Investors are more likely feel
assured of your prospects and a return on their investment.
Do you already have a structured/compliant funding
request?
If you already have a compliant offer or funding request,
then simply
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of thousands of Angel Investors, Venture Capitalists and
Finance Providers both locally and even internationally.
The key aspects of becoming "Investment
Ready"
To attract an investor, your business needs to present the
significant benefits to be gained from making an
investment.
Having your business ready for the introduction of an
external investor (i.e. Investor Readiness) requires the
following:
Be prepared to give a realistic amount of ownership in your
business to the investor.
Separate your personal affairs from those of the
business.
Maintain at least a minimum set of accounting records and be
capable of generating a detailed report on these accounts
within 2 weeks of the end of each month
Be honest with the investor with regard to those weaknesses
in the business that you would like the investor, and his or
her funds, to address (e.g. a significant gap in management
expertise, help in establishing export markets).
Tell the potential investor how you intend working with him
or her to achieve a beneficial result for the business
Prepare a business plan of how you think the business can
operate. Specify what it can achieve over the next 2 or 3
years. Ensure it contains a story that will be attractive to
the investor. Remember that your investor needs to see that the
value of his or her investment of time and money will increase
in the medium to long term. Make sure that any additional needs
for capital during the next few years are shown in the plan,
even if you are not wanting to raise additional capital at this
time. Most importantly, be realistic!
Typically, having your business "Investor Ready" is
applicable to smaller businesses or those businesses that are
young and have the potential for growth. Remember, if your
business is not able to achieve significant growth it is not
normally going to be attractive to an investor.
Businesses that are looking for sizeable amounts of capital
need to be "Investment Ready". This means that they have moved
themselves into a position where they are capable of
immediately using the investment to significantly progress the
business.
Investment Readiness requires the following
elements:
- Attend to all of the items described above as being
necessary for becoming "Investor Ready"
- Expand your business plan with some of the details set
out below
Identify the precise purpose of the investment. For
example:
- providing a mechanism for existing management to
purchase the business from its current owners.
- investing in additional plant and machinery.
- expanding the business into other geographic
regions.
- restructuring the business to improve
profitability.
Identify quite clearly the market or markets that your
business is able to capture:
- the types of customers that you expect to attract.
- the way in which you intend to sell or distribute your
products and services.
- the distribution channels currently in place.
- the competition.
- the growth potential for the market(s)
- your business’ ability to grow within those
markets.
Identify very clearly your products and services:
- their competitive advantage.
- additional development needed in both the short and
medium-term.
- the reasons that customers will wish to purchase your
products in preference to the competition.
Present a well-balanced management team which:
- can deliver and manage your products and services into
the stated markets.
- can manage the demands of growth over the next 3 or 4
years.
Identify any known deficiencies in the team, or their
ability to work together and any plan already in place to
address these management issues. (Management and its
capabilities, will be the most important aspect in an
investor’s decision to put money and time into your
business).
Concepts & Business Models Typically
Requiring Investment..
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