With Dave Paton from Business Angels Finance International LLP who match businesses to equity and debt funding.
I seem to have talked a lot about money this month.
Some of my clients are actively looking for funding to grow. The Growth Accelerator, the Manufacturing Advisory Service and the Technology Strategy Board are but a few that can provide that funding. The government is looking for high growth, technology lead companies who can secure the future of this country’s economy.
Often this funding has to be matched. Finding the rest of the money can be a challenge.
Business Angels is one source of the money needed. Dave belongs to one of a few similar organisations who match businesses needing funds to high worth individuals who are looking for investment opportunities.
Business Angel organisations help businesses prepare to pitch to private investors. They match the interests of the investor to the business sector.
The financial offer will vary from helping with short term cash flow problems to investing long term in a business in exchange for equity. They are interested in the answers to three questions:
- How much is needed?
- What is the evidence that there will be a return on investment?
- When will that return on investment be realised?
Money is an important element of business without which businesses wouldn’t exist. Marketing is driven by growth in profit. Cash flow is king. Only by investing in a business will that business grow.
Yet sometimes business leaders shy away from money. It makes some feel embarrassed.
I remember reading in Richard Denny’s book Winning New Business “Make a list of all the things you really want, both long term and short term, in your business life and in your private life…….Whatever you do don’t put down monetary goals.” It has always stuck with me. Marketing objectives need to be monetary. The reason we’re all in business for ourselves, probably isn’t though. It’s what we can do with the money that is important. Money is just simply a means to an end.
That end is very different for every one of us. For some it will be an expensive car for others it’s a small holding with pigs and hens. Whatever it is, your business needs to succeed to get there. So maybe it isn’t all about the money…