Making Your Business Investible

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Nick Moules
15th April 2013

This week, we’re welcoming a guest blogger to the site, Rodger Seaman of Advantage Business Partnerships. Rodger is a business growth specialist and here he offers some tips on acquiring angel investment, which can sometimes be the solution for young businesses looking to raise finance and the expertise of a seasoned professional investor. If you would like to contribute a blog on a related topic in the future, contact nick@rebuildingsociety.com

“So how do investors select the businesses that they decide to invest in? More than two-thirds of private investors recently polled said ‘being personally moved by the idea’ was a leading factor when evaluating a venture for potential investment. The potential of the market and the prior experience of the entrepreneurs were also key factors.

Based on this feedback, businesses that want to improve their investor appeal should ensure they:

1. Provide a precise pitch summary: Keep your pitch clear and simple so potential investors can easily understand what and who they are investing in. Don’t forget to explain what your company does and where the idea came from; who you do it for and how it will benefit them; how the market works; what you’re going to use the investment for and what your potential exit strategies are.

2. Tell them about yourself: Give enough background on who you are and what your history and expertise is. Tell them what inspires you about your business.

3. Provide detailed business plans and financial forecasts: It is crucial to give potential investors the information they need to make an informed investment decision. Therefore, a detailed business plan and financial forecasts are pre-requisites.

4. Outline your investment target: Don’t ask for any more than you need; a smaller target will mean that it is more achievable to hit.

5. Provide tax breaks with EIS and SEIS: Registering your company as compliant with Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS), gives investors substantial tax breaks as high as 78% of the total investment value.

6. Give a realistic valuation for your business: Your company is only worth what an investor is willing to pay for it.

7. Give regular updates on your business as well as the pitch progresses, to keep followers informed about your company and the fundraising process.

8. Put yourself in the investor’s shoes: Many investors have similar characteristics to entrepreneurs — including confidence and optimism. Many may even be entrepreneurs themselves and are using investing as a proxy for entrepreneurship.

Follow these logical steps and securing investment in your business should be made that little bit easier.”

For more information or support with seeking investment – contact:

Rodger Seaman

Associate Partner, Advantage Business Partnerships Ltd
Office: 0203 3840 276 – Mobile: 07799 637561
First Floor, 55 – 59 Shaftesbury Avenue, London, W1D 6LD
Rodger.seaman@advantagebusinesspartners.com

www.advantagebusinessltd.com

 

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