Raise Money For Small Business

By Author: Kate Ingham
Total Articles: 162
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Investors in early stage businesses are renowned for looking for innovative products and services – that is, unique intellectual property. It’s where the big upside is located in investment terms.

However, with many investors seeing a great idea squandered by a not-great team, they are now focusing capability.

So when raising money for small business it is essential to look at your team’s ability to perform actions or “capability”.

To quote Paul Neiderer, Managing Director of the Australian Small Scale Offerings Board (ASSOB), “capability is the sum of expertise and capacity. Innovation is one half. The power or ability to generate an outcome is the other. You need both to successfully raise capital and obtain sufficient venture funding.”

Neiderer outlines that capability is evidenced to investors by:

- Experienced management team with deep industry experience.
- Available channels to market.
- Good strategic partnerships.
- Proven high growth experience.
- Availability of critical human resources.
- Can implement the goals in the “Use of ...
... Investor Funds” statement in their stride.

Innovation to investors is evidenced by:

- Satisfies a compelling (global) need.
- Targets a well defined (large) niche market.
- Has significant competitive advantage which is sustainable over the medium term.
- Supports high gross margins.
- Enables high scalability.

So when considering small business finance options and equity capital raising as a solution for your business, look at attracting a team around you to provide investors with the confidence about your capacity to execute your business plan.

And if you don’t have a business plan – speak with Alchemy Equities. We work with a business plan process which has been developed by a corporate advisor/investor – so you won’t end up with a non-implementable door stop. Four hours with some solid research behind you about your market intelligence is what you will need for this cost-effective process. Putting thoughts down in a structured way will make you fine tune your business case, your target market and understand your business’s capability in a way that you can communicate to all future partners.

Kate Ingham is the Managing Director of Alchemy Equities, a sponsoring member of ASSOB, specializing in raising equity capital for small to medium sized growth businesses in Australia. For more information on raise money for small business please visit: http://alchemyequities.com.au/