Are You Investment Ready?

A Checklist to use if you are considering an investment route for your business.

The big idea

Investment readiness means that you are in a strong position to present your business to different investors and meet their requirements. You may have a particular project to put forward or you may feel that your business is ready for rapid growth. On this basis you might consider approaching different sources of funding, such as:

·         Business angels

·         Venture capitalists

·         Banks

·         Other funders such as high net worth individuals

Purpose

Seeking external support to allow your business to grow involves both ensuring you have a credible case to present and making a series of personal decisions to make sure you are comfortable with the direction you are taking the business in. The purpose of this tool is to help you think about some of the issues that might arise during this process so you are more likely to meet the needs of the investors and to succeed.

 You are unlikely to be investment ready if:

·         You are unwilling to give up a stake in the business

·         You have an inadequate business plan

·         You are not looking for fast growth. Can you provide a growth level of eight to ten times within five years?

·         You do not have a proven need for your product or services

·         You lack knowledge of your market

·         You lack knowledge of the investment process

·         You are unable to pitch your business effectively or credibly

The Tool

This tool consists of a questionnaire that takes you through some of the key questions you need to consider to work towards investment readiness. It can be done on your own or with people who know you and your business well. It is for businesses of all scales interested in external investment. The questionnaire should take 20 minutes to complete.

Download this tool(PDF)

Join us in the upcoming series on the Business-survival Toolkit coming soon......

GBSH Consult is – an award winning, international business transformation and turnaround firm with proven success in solving complex financial, operational and people performance issues. www.gbshconsult.com

The Global Concept of Business Funding

Everyday entrepreneurs are growing their businesses by doing business around the globe. It is no longer business just on a local scale anymore.  Operating your business for the local market is fine; however, it is now very possible to take the business regionally, nationally and even worldwide. If you are planning to expand to a larger market, is important how you scale your business growth. The ramifications of this expansion can be daunting; however, you cannot allow it to derail the opportunity to sell your goods and or services to a wider market.

With the advent of the internet, and new technology that can now facilitate global business opportunities, financing can be a nightmare. Gaining global clients requires increased cash layout in order to provide the goods or services. These additional expenses are usually appropriate and in proportion when you are taking the business from a local level to a wider audience.

Financing Solutions

Financing solutions are available to business owners based on increased sales and clientele.  Where those clients are located can be important when you are in the process of securing the necessary capital for business growth or survival. Being able to deliver the goods or services is crucial to continued growth. Doing business with credit worthy clients is a critical element to any financing strategy.

Doing business on an international scale changes the game. Signing on new clients who are not good payers can decrease your capacity to gain the funding you need. The clients must also be approved by your lender depending on the financing solution being employed before a funding option can be implemented. 

Here are solutions to consider before accepting clients outside your local market:

Factoring – Having outstanding accounts receivable is no fun when there is no money in your bank account. Selling your receivables is an option to consider when you need an immediate cash infusion.

Purchase Order Financing – Is appropriate when your business receives that large order and you are not financially solvent enough to facilitate the transaction.

Crowdfunding – The opportunity to finance your idea or product through this option has helped many see their dreams become reality. This solution creates an immediate customer force for testing future product ideas. Just think – ‘pre-sales’ in the 21^st Century.

Letters of Credit – LOCs give qualified entrepreneurs the ability to transact business on a larger scale.  Entrepreneurs can grow their enterprises faster on a national and even global scale, with this option instead of turning business away.

Microloans – This option must never be taken lightly. It is used around the world to help start-up micro-enterprises and grow established small businesses. These businesses would not exist otherwise, and in some countries, some communities would not exist otherwise.

Finally, global enterprises are not necessarily large, multi-million dollar firms. They can be small businesses operating across borders, on a global scale, accessing much needed financing, while being the driving force in their local economies.

GBSH Consult is a global management consulting firm proven in delivering leading business results. GBSH Consult supports clients in preparing them to be investment ready as well as position them in the global business marketplace.  For more information go to www.gbshconsult.com