Partner Article

It isn’t all doom and gloom

Our recent success in helping a client obtain a significant investment from funders highlights that with the correct approach it is possible to secure funding for business growth.

The key things to bear in mind are to be realistic, conservative (with a small ‘c’) and understand your business and market. Ensure your plan can be justified and explained, understate your sales and overstate your costs and if the business still makes a profit then it is likely to work.

Remember that funders look for affordabilityand servicability of the debt so focus on sustained profitability. As a wise man once said ‘Turnover is vanity, profit is sanity’.

Make sure your gross and net margins are maximised and then track them regularly. Make sure you can get monthly managment accounts out of your systems on a timely basis (within a few days of the month end).

Manage you cash flow and forecast it. We monitor our cash flow daily and maintain a 6 month rolling forecast so we are able to identify pinch points and deal with them in advance.

This is all part of presenting a robust and professional image to your potential investors. If you think your managment tream could be stronger then consider recruiting a Non Executive Director to plug any gaps you have identified.

Create a support structure around you that you trust and can rely upon. Ask for help before or when you need it not when it is too late.

Above all believe in yourself and your business and go for it.

This was posted in Bdaily's Members' News section by Tony Wright .