How to Get Funding to Start Your Own Business

Many entrepreneurs relied on their personal savings to start their business. If you don’t have enough savings for the funding you need, you can ask family and friends who are willing to lend a hand. It can be an informal request over dinner or formal meeting in the office. Either way, it would be best to be ready with your business in case they do ask for it. It is their money they are going to invest in your business after all, so expect them to look closer and see whether it’s worth their time and money.

A restaurant business, for example, is no ordinary business plan. You have to be able to propose a unique name, logo design, initial interior layout, and visual merchandising design to get the attention of your investors. Avoid vague ideas and make them vivid with illustrations and mock-ups. Also, you must be clear where you will be getting your resources and raw materials. These should be specified and included in the financial study of your restaurant business.

You need to be confident that your ideas are truly unique and potentially successful before you can even convince investors and venture capitalists to support you. Good presentation and market research will go a long way. Be sure to know what they are looking for. What they are usually after is innovative technology like software, which is a trend nowadays. They would also be looking for a well-developed business model, something with potential for fast growth.

Instead of a business alone, a lot of people are now relying on a private placement memorandum template, which is known to help raise funding for businesses. Here you would need an attorney’s assistance to provide you with a foolproof PPM, including your business plan and all risk factors. They will also be essential in making sure your PPM is following security laws before it is offered to investors. A PPM can be an exhausting material to accomplish. That is why a free or paid private placement memorandum template is offered by various experts and websites.

Importance of Correct, Precise Documentation When Selling Your Business

The premises were very shabby however the core business was extremely impressive, had masses of potential with huge barriers to entry due to the costs associated with buying new specialised equipment, obtaining suitable laboratory space, training staff in the use of instrumentation, obtaining accreditation’s and gaining the relevant licenses not to mention the time taken to gain the client loyalty and even then, having the right driver behind the wheel would be critical to its future.

Each meeting, phone conversation, email with the vendor was difficult as he was suffering from mild memory loss due to his old age and couldn’t remember a lot of what we had discussed previously so my battle with him was very uphill. I knew that I also had to look out for his interests when negotiating a sale and I made sure that every conversation between me, the vendor and the purchaser was well documented.

Everything that you should not do when trying to sell a business, he did. He increased staff wages as he thought it would the right thing to do for them moving forward, he purchased new equipment, he spent money on updating the computer and phone system, he took on new staff, all of which either reduced the net profit or was expected by a purchaser to be included in the sale price with no extra investment.

The owner had established the business over 18 years previously and had got it to a stage where he was finding it hard to move forward at a pace that it should have been worthy of. Each year turnover and profits had been increasing but the business and staff were in a constant struggle with their work load due to the severe lack of management, systems and procedures and even simple direction. This was a business that was seriously performing under its potential.

Once the appraisal had been finalised and all had been agreed on between me and the vendor, it was time to do my homework on the potential purchasers. It was quite apparent that this business was not run of the mill and most potential buyers would have absolutely no interest whatsoever, so I had to be very specific when seeking a buyer. I made contact with a select few companies, all based interstate or overseas as there are no other competitors here in WA to speak of.. I managed to get two companies who were extremely interested in buying out this business as they saw the huge potential that it held for them. The staff were all qualified and all wished to stay on after a sale occurred, the substantial amount of plant and equipment was all in good working order, some of which was brand new and the work just kept rolling in without much effort at all.

There was hurdle after hurdle, the vendor did not understand the importance of providing me with the information I needed to help me get this deal across the line, and it was a constant uphill battle!

My saving grace in the whole process was with the “acting manager” she understood that the owner was more of a hindrance than a help not only in the day to day operations but also with the information that I so desperately needed firstly to put the correct value on this business and then to enable me to present it for sale. After a very long haul, and lots of back and forth communication between the business manager and the owners accountant to gain the documents I needed, I was finally able to get enough information to enable me to not only give an accurate opinion for the selling price but to find the right buyer and successfully follow through to settlement.

The Manager of the business advised me that the owner had tried to sell the business himself the previous year and had found a suitable buyer but the communication between himself and the purchaser was so vague and misconstrued that both parties eventually agreed not to proceed as neither party was 100% sure of what they were selling or buying therefore the sale after many months of negotiation inevitably fell through.