NEW START // ISSUE 6 // 19

GUY RIGBY

to potential investors. You should also consider finding a mentor or non-executive director- someone who has been there or done it before.

There are a number of potential sources of funding for SMEs to consider including: banks, asset based lenders, business angels, or family and friends. For more established businesses venture capital may be available.

Raising finance is not easy, so you may need professional help and advice. Whatever happens, don’t let your advisers write the plan. It’s your baby and you need to understand every word and every figure, even if you have enlisted external help.

Good luck! guy.rigby@smith.williamson.co.uk

Disclaimer - By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.

GUY’S TOP TIPS WHEN PITCHING FOR FUNDING:

Identify the purpose and benefits of the required investment

Be specific about how the monies will be used and how your investors and lenders will get their money back

Quantify the potential of the opportunities available to the business

Provide forecasts to cover at least the next three years, together with clear objectives and milestones

Ensure that your forecasts are based on realistic assumptions

‘HAVING THE RIGHT STRATEGY IS THE FIRST STEP. GOOD IDEAS ARE TWO A PENNY, BUT YOU NEED TO ENSURE THAT THEY SUIT THE MARKET AND THAT YOU HAVE THE RIGHT TOOLS AND MANAGEMENT TO SUCCEED.’