Top 3 Strategies for Raising “Useful Capital” for Your Business from a Position of Strength

Introduction

Raising capital is a critical aspect of business growth and development. Access to “Useful Growth Capital” has many benefits including affordable cash to grow, working capital for marketing and sales, corporate development initiatives such as merger and acquisitions and other resources needed for growth. More importantly partnering with the right capital provider i.e. “Useful Capital” can contribute not only the needed capital to fuel your business growth but also provide industry expertise and guidance that gives the company a higher probability to ensure a steady path to growth and ultimately a wealth creation entity. However, access to growth capital for Small Business is limited as the gran majority of Private Investors focus on Early Stage or Mature Businesses due to: High Expected Returns and the Probability for success is higher.

 Capital raising is difficult because business owners and investors do not speak the same language, nor have the same interests. Business owners and investors have disparate perspectives on everything from what "defines success" to "management control".

 Below is a high-level chart by the Type of Investor suitable for each of Stage of the Business Lifecycle and their expected returns.

 
 

A common misperception is that a small business must forgo a large portion of equity to raise growth capital. This is only true if the business raises capital from a position of weakness.

Business owners seeking to raise capital from private equity and venture capital can do so from a position of Strength by the following:

  • Be Proactive in Planning

  • Have a Highly Defined Business Model & Exit Plan

  • Develop a Capital Raising Plan

This report details how to raise capital from a position of strength and was written for entrepreneurs, owners, and executives that are currently or will one day be entertaining funding options for their business beyond money from friends, families, and traditional banks.

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