| Raising capital as a means to fuel company growth | | | | your business is going to put in place to use the new |
| and development is one of the most essential -- yet | | | | capital? Remember to review and revise your |
| perplexing -- activities for possibly any company to | | | | company's business plan as the need arises; it should |
| pursue, be it a start-up business or a long-time | | | | reflect any new business opportunities, and pertinent |
| company. Very new companies, particularly, | | | | information about the market outlook of your |
| experience the toughest time acquiring good sources | | | | company. |
| of capital formation. The relatively young age of the | | | | I know I've already mentioned this, but it bears to be |
| new startup company, plus its non-existent or minimal | | | | repeated: It should come as no surprise that a |
| performance record, plots -- via less than perfect | | | | competent and resourcefully rendered business plan |
| circular reasoning -- to produce this terrible set of | | | | will greatly improve your company's chances of |
| circumstances: The startup business is constrained | | | | raising capital. |
| when it wants to develop new product lines, manage | | | | (c) Scrutinize the funding sources you propose to |
| growth, and achieve market dominance -- to present | | | | contact. The proposed targets of your action to get |
| a better track record -- because it doesn't have | | | | corporate financing, consisting of: investment banks, |
| access to dependable ways to raise capital, and it | | | | venture capitalist (VC), angel investors, securities |
| can't procure access to good capital sources because | | | | broker/dealers, investment advisor firms (IA), |
| of its short performance record! | | | | sophisticated investors, and accredited investors, |
| All the above begs for this question: How can any | | | | should all be given a careful appraisal. The gist of the |
| company, be it public or private, set itself free from | | | | deal is to assess if they have specialized in your |
| the above financial limitations, and raise the capital | | | | particular business. Analyze their resent funding |
| that will allow it to take the next step in its business | | | | activity to see if they have provided financial |
| life? The less than optimal choices to raise capital, and | | | | resources to comparable businesses in your market |
| in particular for start-ups, is not new to company | | | | segment. There is a very strong chance they would |
| founders, corporate directors, and other company | | | | be open to the idea of helping your business |
| officers; all have been exposed -- to some degree or | | | | enterprise raise capital, too. |
| other -- to the capital-raising paradox. The steps they | | | | When invited to do a presentation, keep it short, |
| took to overcome its limitations to company growth | | | | sweet, and to the point. A four page outline of your |
| and expansion is the subject of this study. Your new | | | | business plan is more than enough. By all means, |
| business enterprise can overcome the above | | | | avoid the temptation of name dropping and only |
| capitalization catch-22 and achieve great results! Here | | | | provide a short list of the principals and experts that |
| is a preliminary guide to help your company raise | | | | are really engaged in your business enterprise. |
| capital: | | | | Remember: quality is much better than quantity! |
| (a) Join business incubator focus groups, discussion | | | | (d) Additional avenues to explore, while your |
| groups, advisor boards, community business | | | | enterprise is busy raising capital, is professional "proof |
| organizations, business development groups, business | | | | of concept" regarding your corporate structure, |
| roundtables, professional business forums, local | | | | manufacturing, and feasibility studies. High technology |
| fraternal business chapters, and business blogs. | | | | companies blazing a new path, as an example, could |
| Seek the advice and tutoring of the older, more | | | | be bringing to market items and innovations that are |
| experienced CEO or CFO. This is such a golden | | | | ahead of the curve, light years away from presently |
| opportunity on account that these older executives | | | | available systems. |
| offer a lifetime of practical experience to share with | | | | Since nobody has ever seen -- or even thought of |
| younger upstarts; your company will benefit greatly | | | | the idea -- there could be a degree of hesitation |
| from their generous business know-how and | | | | encountered from the directors at investment banks, |
| experience. | | | | corporate capital sourcing and broker/dealers. |
| In addition, although the retired executives are no | | | | Professional and technical validation of your company |
| longer actively running their own companies, they | | | | and products can greatly help to provide answers to |
| enjoy assisting younger, up and struggling corporate | | | | groups and individual investors that are the most |
| officers because -- in a vicarious way -- they get to | | | | important: your proposed sources of capital |
| relive the romanticism of their younger "glory days," | | | | formation! |
| and that is one of the reasons they are glad to help, | | | | (e) Notwithstanding that this is mentioned last, it will |
| and keep abreast of the action. | | | | serve to give life and action to everything we've |
| (b) Get your business plan ready! You should produce | | | | discussed so far. The magic quality that makes raising |
| a well written and insightful business plan, since it is | | | | capital, and corporate growth and expansion possible, |
| one of the most essential tools employed to raise | | | | is this: do not get frustrated and walk away! When |
| capital. Few things are more essential for your | | | | your financial explorations lead but to a dead end, |
| company's capitalization search than offering your | | | | don't dwell upon it and move on to the next one, |
| capital funding sources a thoroughly researched and | | | | since it could lead to this: the open door that has a |
| meaningful business plan. The presentation should get | | | | receptive and open mind, and will be very actively |
| across your strategic corporate planning, the avenues | | | | involved in helping your company to raise capital. |
| your company intends to seek to grow and expand, | | | | (f) Every capital funding proposal should receive |
| and your general business experience. | | | | thought-provoking consideration prior to going on to |
| However, the most vital part of any business plan is | | | | the next deal. If you pursue this broad -- yet specific |
| to appraise the proposed target -- the investment | | | | -- guide, your startup business will grow and conquer |
| advisor that may consider it -- how your corporation | | | | new markets through the art of raising capital. |
| will use the capital. What are the development steps | | | | |