When you decide to start a small business, one of your first questions is likely to be "how to raise money to finance your business operations?"
Private firms can raise capital from many options available. One such option is called pass through facility. The Pass-through Structure suits a company that has noteworthy management or proprietary assets, seeks to raise capital growth without selling a controlling interest, and yet is not ready for a public stock market. The other is what we call, Pre Listing Commitment which is a legal binding agreement with the funds to give you the cash you need once you are listed. For small businesses in small countries, an equity option of Family Offices list is widely used, where after getting a small directory of family office names together you could then search on Google, LinkedIn, Facebook, Twitter, etc. to find contact details for these professionals and then contact to raise capital.
Whichever equity or debt method you use to obtain your resources your team should be able to benefit from using it and spend some time developing a business plan. Only then should you go forward with financing plans for even a simple small business.
Start smart
Put together a simple, clean company foundation listing down
1. Incorporation and founders stock
2. Employees, consultants, advisers
3. Intellectual property
4. Seed investors and loans
5. Corporate governance practices
6. Right attorney.
Tell a good story
Know how to articulate the fundamentals of your business while presenting on following points
1. Teams efficiency and productivity
2. Problem / opportunity
3. Technology / solution
4. Sustainable advantage
5. Business model
6. Partnership / leverage
Make sure the numbers add up
Demonstrate a solid grasp of your economics with a good picture presenting
1. Long-term financial projections
2. Near-term operating plan
3. Capital requirements
4. Capitalization structure over multiple rounds
5. Levers of profitability / Key metrics.
Find the right investors
Use your sales and marketing skills and work on following points along with your team
1. Generate momentum
2. Target your venture contacts
3. Herd the cats.
Build credibility
Work on important factors that enhance and detract
1. Customers
2. Strategic partners
3. Investors / board members
4. Advisers / industry experts
5. Milestones
6. Defensiveness / bull pucky
Raising Capital the right of way is important to be considered.
Stamford Privee - Your Independent
Asian Family Office. The experts assist you in managing and investing your
Private Funds and setting up of
Family office Singapore.Log onto www.stamford-privee.com for more details
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