raising capital webinar

presented by the:

Business Success Webinar Series.Know-How Now

Raising Capitaland Finding Investors for Your Business

Is your business investor-ready? Discover strategies for finding business angels and investors and pitfalls to avoid when raising capital.

sponsored by:

Suzi DafnisAustralian Businesswomen’s Network


Fiona De ZottiAustralian Businesswomen’s Network



Simon WinfieldWinfield Business Strategy

Why do you need external finance?

Assets – Store, factory,

machinery

Working capital

Cash flow shortfall

R&D, Market Research

Take money out of the

business

Expand nationally

internationally


What are your goals?A. To get my business to the stage where I can live comfortably

from it.

B. To grow my business over time, and maybe sell it at some

point in the future.

C. To rapidly grow my business, sell it within the next few years,

and start another one.


From an investors point of viewGold Inflation

Government Bonds 6.3%

Money market, Bank 7-7.5%

Equities (ASX listed) 12.5% (over last 109 years)

Equities (unlisted) 20-30%

Start up, early stage40-100%


Funding your business1. Your own money

2. Grants and loans

3. Revenue – customers advance payments

4. Your mentor, your mentors friend

5. Banks

6. Strategic options – customer / industry partner

7. Business Angels

8. Venture Capital (Mike Southon, Beermat Entrepreneur)


Debt financingPersonal-Credit Cards, Mortgage

Friends and Family loans

Customer, Supplier finance

Leasing

Factoring

Bank overdraft, loan


Equity investorsFriends and Family $10K to $100K

Easy to access Damage to relationships

Angel Investors $200K to $500K

Contacts, experience Personality conflictInvolvement

Venture Capital $2m to $10m

Industry expertise ControlManaging for harvest


Where to find investorsFFF

Business Angels

AAAI www.aaai.net.au

Business Angels www.businessangels.com.au

Venture Capital AVCAL avcal.com.au

ASSOB assob.com.au


ChecklistBusiness plan + 2 page summary

To include: Balance sheet, Income statement, Cash flow statement, 3yr projections, Cashflow forecast monthly.

Equity pitch

Product or service and benefit to customer. Market opportunity. Team expertise.

Debt pitch

Ability to service loan, collateral, cash flow forecasts.

Investors: Research thoroughly

Banker: Find and build relationship


• ‘Lack of money, employees, equipment, product is actually a huge advantage’ (Gianforte, Brightwork Dev Inc)

• ‘Refusing to rely on [external funding] imposes a financial and sales discipline on the business that is very very healthy’ (Mike Southon, Beermat Entrepreneur)

• Walt Disney

• Estee Lauder

• Boo.com

• 2003 Inc 500 – 61% of companies started with <$50k


Do you really need outside investors?

Reference sources

Women’s Business Women’s Wealth - Amanda Ellis

Smart Financial Management - Sihler, Crawford, Davis

The Beermat Entrepreneur - Mike Southon, Chris West

How to Raise Capital - Timmons, Spinelli, Zacharakis


Pay-as-you-go membership is just $20 a monthBelonging has Benefits

Business Success Webinar SeriesKnow-How Now!

presented by the:

Grow Your Business with the Help of a Mentor.MentorNet

Imagine the success your business could achieve with the help of a Mentor.

Hurry! The next MentorNet program starts on 23 September.

presented by the:

What’s Next?

• Join the the Know-How Now! Community• Start a discussion• Participate• Network

Thank you!


raising capital webinar

Economy & Finance

beermat entrepreneur

mike southon

investors

business

sell