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BUSINESS OWNERS
At Capitalised.com we can help guide your
business to a state of "Investor Readiness". Potential Investors
of all levels will want to know that your business has taken the
relevant steps to ensure a certain degree of planning and
capital structuring.
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.
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:
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Be prepared to
give a realistic amount of ownership in your business to the investor
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Separate your
personal affairs from those of the business
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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
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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 (eg. a significant gap in management expertise, help in
establishing export markets)
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Tell the potential
investor how you intend working with him or her to achieve a beneficial result
for the business
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Prepare a plan of no more than 10 pages 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.
Contact us now to
see how we can best assist you and your business to become Investor Ready!
Phone: 1300 88 66 21 Today!
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