Date post: | 20-Oct-2014 |
Category: |
Economy & Finance |
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Business Success Webinar Series.Know-How Now
Raising Capitaland Finding Investors for Your Business
Is your business investor-ready? Discover strategies for finding business angels and investors and pitfalls to avoid when raising capital.
sponsored by:
Suzi DafnisAustralian Businesswomen’s Network
Raising Capitaland Finding Investors for Your Business
Fiona De ZottiAustralian Businesswomen’s Network
Raising Capitaland Finding Investors for Your Business
Raising Capitaland Finding Investors for Your Business
Simon WinfieldWinfield Business Strategy
Why do you need external finance?
Assets – Store, factory,
machinery
Working capital
Cash flow shortfall
R&D, Market Research
Take money out of the
business
Expand nationally
internationally
Raising Capitaland Finding Investors for Your Business
What are your goals?A. To get my business to the stage where I can live comfortably
from it.
B. To grow my business over time, and maybe sell it at some
point in the future.
C. To rapidly grow my business, sell it within the next few years,
and start another one.
Raising Capitaland Finding Investors for Your Business
From an investors point of viewGold Inflation
Government Bonds 6.3%
Money market, Bank 7-7.5%
Equities (ASX listed) 12.5% (over last 109 years)
Equities (unlisted) 20-30%
Start up, early stage40-100%
Raising Capitaland Finding Investors for Your Business
Funding your business1. Your own money
2. Grants and loans
3. Revenue – customers advance payments
4. Your mentor, your mentors friend
5. Banks
6. Strategic options – customer / industry partner
7. Business Angels
8. Venture Capital (Mike Southon, Beermat Entrepreneur)
Raising Capitaland Finding Investors for Your Business
Debt financingPersonal-Credit Cards, Mortgage
Friends and Family loans
Customer, Supplier finance
Leasing
Factoring
Bank overdraft, loan
Raising Capitaland Finding Investors for Your Business
Equity investorsFriends and Family $10K to $100K
Easy to access Damage to relationships
Angel Investors $200K to $500K
Contacts, experience Personality conflictInvolvement
Venture Capital $2m to $10m
Industry expertise ControlManaging for harvest
Raising Capitaland Finding Investors for Your Business
Where to find investorsFFF
Business Angels
AAAI www.aaai.net.au
Business Angels www.businessangels.com.au
Venture Capital AVCAL avcal.com.au
ASSOB assob.com.au
Raising Capitaland Finding Investors for Your Business
ChecklistBusiness plan + 2 page summary
To include: Balance sheet, Income statement, Cash flow statement, 3yr projections, Cashflow forecast monthly.
Equity pitch
Product or service and benefit to customer. Market opportunity. Team expertise.
Debt pitch
Ability to service loan, collateral, cash flow forecasts.
Investors: Research thoroughly
Banker: Find and build relationship
Raising Capitaland Finding Investors for Your Business
• ‘Lack of money, employees, equipment, product is actually a huge advantage’ (Gianforte, Brightwork Dev Inc)
• ‘Refusing to rely on [external funding] imposes a financial and sales discipline on the business that is very very healthy’ (Mike Southon, Beermat Entrepreneur)
• Walt Disney
• Estee Lauder
• Boo.com
• 2003 Inc 500 – 61% of companies started with <$50k
Raising Capitaland Finding Investors for Your Business
Do you really need outside investors?
Reference sources
Women’s Business Women’s Wealth - Amanda Ellis
Smart Financial Management - Sihler, Crawford, Davis
The Beermat Entrepreneur - Mike Southon, Chris West
How to Raise Capital - Timmons, Spinelli, Zacharakis
Raising Capitaland Finding Investors for Your Business
Pay-as-you-go membership is just $20 a monthBelonging has Benefits
Business Success Webinar SeriesKnow-How Now!
presented by the:
Grow Your Business with the Help of a Mentor.MentorNet
Imagine the success your business could achieve with the help of a Mentor.
Hurry! The next MentorNet program starts on 23 September.
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What’s Next?
• Join the the Know-How Now! Community• Start a discussion• Participate• Network
Thank you!
Raising Capitaland Finding Investors for Your Business