In order to raise capital, an investor needs to know what they’re investing in. This is the key communication and usually comes in the form of a business plan. The features of your business, the strategy and risks will all be clearly presented in this document and would be a source of clarity, not only for yourself – but anyone interested in your business as well.

The items I would include in this are as follows:

  1. What is your business – are you a law firm, property investment company, dentist or other?
  2. Who is your current target market, what is your marketing strategy and how do you engage new clients?
  3. What are your accounts for the last 3 years? If there are any significant changes from one year to the next, what is the explanation for these?
  4. What will the funds be used for?
  5. What is the term of the investment? The interest rate?
  6. What risks have you identified and furthermore how do you expect to mitigate them?
  7. What is the business looking like in 2-3 years time? Can you provide financial projections?
  8. What are your qualifications? Highlight your experience and why you are a suitable (or fit and proper) person.

These are high level items but at least serve as a starting point. The key question is, what would you like to know if you were asked to invest in somebody else’s company?

The next phase is to get your proposal in front of people who may be able to help. I will cover this in the next post!