Is Your Business Investment Ready?

Is Your Business Investment Ready?

Many smaller businesses can find it difficult to access the vital finance that they need to thrive and grow.

The vast majority of businesses require access to investment and a line of credit; whether to buy stock, hire new staff, or upgrade premises. However, many of the major banks are reluctant to lend in the current economic climate, and there are a number of barriers for business borrowers to overcome.

To make sure your business is investment ready, it makes sense to have an effective pitch prepared so that you can convince lenders as to your suitability as a finance customer.

Know Your Audience

You should always understand your audience whenever you are pitching to secure access to finance. You will need to have a plan in place for your pitch. Begin with a short and memorable ‘elevator pitch’, which sums up your business proposition in just a few sentences. This should grab the reader’s attention, and will show that you are professional.

Follow up with a clearly-defined and properly constructed business proposal which includes financial forecasts. These should be detailed and lay out your business’ past trading, present position, and projected future financials. Be ready to back up this information in detail and to provide a justification for any projections.

Be Mindful of the Language You Employ

The pitch must be carefully constructed so that it contains a wealth of detailed information, but this must be presented in a way that is both persuasive and engaging. Make sure that the language you use is precise yet simple, and that it will resonate with the audience. Consider using infographics, graphs and tables to present data. Commercial awareness and confidence must be conveyed in both the tone and content.

Once drafted, ask someone you trust to read the document with fresh eyes and, in particular, ask whether it lays out a clear case for what you want to achieve, and a strong vision for attaining this. Ultimately the question needs to be – will the contents of this document encourage someone to invest in my business?

Get Help

Writing a financial pitch is a specialist task and it may be worth obtaining some support beforehand. A business mentor can be a good investment and there are various providers that offer such services. A good accountant is also an asset in organising and understanding your figures. At Allsquare, we offer straight forward accounting solutions to SMEs and larger businesses, with access to a friendly and expert team who can offer bespoke solutions to suit your needs. We understand business and offer business advice where needed. We want your business to thrive as much as you do, and our team will go the extra mile to help you understand your underlying financials and to present figures accurately and appropriately for investment purposes.

Consider Lenders

Another useful point to remember is that, if you are struggling to obtain finance from a mainstream financial lender, you may wish to consider some of the specialist commercial lenders. Most regions have at least one that is government or EU funded, and which may offer attractive rates and terms to businesses looking to grow and thrive. Your local chamber of commerce can be a good place to find out more. Increasingly it is very relevant to consider Crowd Funding equity investment options so don’t overlook that option in parallel with banks, equity syndicates and government back schemes.