Before seeking equity finance from an investor, make sure you know your business inside out. Here are some helpful tips to get you started
You need more than just a great business idea to secure equity finance.
To secure the interest of potential investors you will need to provide clear evidence of a solid business plan, with a compelling pitch and risk analysis.
A potential investor will want to know your proposed business structure. Investors will need evidence that you have a solid company structure in place, including a well-defined commercial remit and management with the necessary track record.
Investors will require a full set of financial records and detailed financial projections.
You will need to show that you understand the market and your place in it.
Consider where your business has potential to grow, research your competitors and look at any uncontested markets that could be profitable.
Your investor relationship matters because they’re not just investing in your company, they’re investing in the management team behind the company. Ultimately, they’re investing in you.
