20 www.homebusinessnetwork.co.uk Issue 2July 2009
NEED TO KNOW :: RAISING FUNDS
Michael Weaver: ‘Know the figures’
Impressing angel investors
Michael Weaver, chief
as they plan to work together to wear something that they feel
over the long term. Establishing a comfortable in. A general rule of
executive of business
rapport with the potential investor thumb is that in these circumstances
investment agency Beer &
is key to a successful partnership. you can never overdress.
Partners, shares five top
Have a clear strategy in place
Be honest, even about
tips on how to ensure that
tricky subjects
A solid business plan that
business angels see the true
identifies the strategy is
A question that angel investors
frequently ask is “what are
potential of your business.
crucial. The plan must contain a
commercial idea which will provide
the risks in this business?”
an eventual profit for investors
Small business owners must be
In today’s turbulent economic
or, as a minimum, sufficient profit
prepared to discuss contingency
climate, securing business
to repay the interest and the
plans and potential difficulties the
funding can be a minefield for
principal on a loan.
business could face.
entrepreneurs. With credit from
Furthermore, not all plans
If they do not recognise the
banks drying up, many small
need to be unique as many
risks, it may be either because
business owners are turning to
businesses that simply improve
they do not fully understand their
alternative forms of funding such
on existing offerings are
own business or they are ill-
as angel investment. However,
established to take advantage of
prepared to manage these risks
this can put added pressure
a niche or to stake a claim for a
adequately. Angel investors will
on those who are not used to
share of an existing market.
appreciate a realistic assessment
‘promoting’ their business in and honest responses as opposed
front of potential investors.
Know your numbers
to a rose-tinted view.
Finally, remember, no small
Product vs. People
When looking for investment, small
business owners should know their
business owner is alone.
Most small business owners
accounts inside-out and be able
The support of experienced
are used to promoting
to discuss them with investors
investment agencies and other
their product or service to
in detail. Commit key figures to
professional advisors should not
customers, prospects and even
memory and prepare a one-side
be understated. In addition, if
internally. When pitching for
‘crib sheet’ to avoid forgetting
small business owners prepare
angel investment, this only
crucial information due to nerves.
thoroughly and follow these best
forms one piece of the puzzle. practice tips they will be well-placed
Investors are interested in not
Look your best
to successfully attract potential
only the product, but also the
A common concern for small
investors despite the downturn.
marketplace, the competition, the
business owners is choosing the
management team, the eventual
right attire for a pitch. Wearing
exit strategy and of course the
The Beer & Partners Guide To
a suit is usually preferred as it
entrepreneurs themselves.
Securing Business Funding can
shows a level of respect for a
Business angels are investing
be downloaded from:
potential investor, however the
in people as much as companies,
small business owner should try
www.fundingforgrowth.co.uk/Guide.pdf
HOW TO WRITE A BUSINESS PLAN
Arye oulooking for new business?
By Monica Mwangunga
Marketing Plan
How will you market your products?
In the current climate it has never been more
WHATEvEr the size of your enterprise,
Television, storefront, online, catalogues,
every entrepreneur needs to develop
important to develop your sales pipeline.
mailings, telemarketing? Any business plan
and write a business plan. This is an
includes a marketing strategy. There are so
outline that evaluates all aspects from
many outlets and your target market will
the economic viability of your business
help establish the best way to approach
to a mission statement, its goals, target
them and sell your product.
Areyoueasily found on the internet?
market, and a description and analysis of
your business prospects.
Risks
Quite simply a business plan can be
Most people today use Google to find products and
With all of the positive energy in forming
broken into six parts:
your new business, you will be left with
services rather than traditional printed directories.
Vision and mission
the need to balance the negatives. What
are the risks involved? As the business
The purpose, projection and performance
owner the need to discover and pull the
Areyoudeveloping contacts by networking?
of your business are created here. This
risks to the forefront are important. Being
is the basis for what you are doing with
prepared for as many possible risks and
your business and products. Business plan
Business networking has fast become the number 1
scenarios will help you to survive a shaky
software and business plan templates will
start. The business plan is the best way to
marketing strategy/lead generator for many businesses
often have an area for a mission statement.
discover the challenges to face early, or at
across the UK. Financial goals
least prepare for them.
All of the specifics for your finances in
Return on investment
the first year should be mapped out. The
With Business Scene you will:
This is the reason you are in business.
business should have a one-year cash
What will your return on your investment
•
flow chart that incorporates your cash
Improve your search
•
Grow your network of
(rOI) be? Knowing beforehand may
requirements. Planning for all financial
change your mind as to whether your
engine rankings. contacts who know you.
events is the key to the business surviving.
business idea and product as you
•
Find over 10,000 networking
•
Raise your company and
Establishing a target market
intended it will be viable in a real world
marketplace. Your business plan will give
events across the UK. personal profile online.
The geographic location, ages of your
you a greater understanding of really how
marketplace and the need for your
much return you are going to make. This
product. research needs to be made in
will put all of your hard work and focus
these areas. A good way to try this is to
into a sharper and clearer perspective.
test and market your product or service
Join thousands of small business
before you officially start your business.
owners and register for FREE on
Try selling some products in test areas
Monica Mwangunga runs BrightStartUp, a
our business directory!
first. Fairs, exhibitions, trade shows and
Business Consultancy firm for start-ups .
other locations are a great way to feel
www.brightstartup.co.uk
www.business-scene.com
out your target market and the success of
your products.
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