By corporate finance, i refer solely to the financing of corporate entities such as incorporated Limited liability companies and Public limited companies registered in the United Kingdom, and getting their financing from UK based sources. If your business is already operational, if the finance you're seeking is considerable,or if your Small Business presentations involve the disclosure of sensitive information, you really should seek professional guidance, possibly from solicitors and accountants.
Before actually approaching the various potential investors, it would be best to prepare extensively for the meetings. Bear in mind that the investors will be looking to buy into both your business and yourself as a person. Remember that its you asking them for an investment, and its critical that you immediately gain their trust, give them confidence in your ability and figures, and give them strong reasons to invest in your business .
A number of things you ought to have ready for meeting the investors are; a detailed business plan, a well practiced business pitch, a detailed knowledge of your market, a decent knowledge of your potential investors, a firm grasp of the return on investment for the investors, a well understood and feasible exit for investors into the business all with a firm grasp of all your figures and presentation components. If your business is sensitive to the leakage of critical information, consider preparing non disclosure agreements. In this situation , you will certainly benefit from the advice of an appropriate qualified solicitor.
Business Plan: You must have this available in writing, preferably a number of copies. Your business plan should introduce your business idea, state your business goals, tell the investors more about you including your experience and specialist knowledge, present some results of your research, state the basis of your assumptions , include a easy to understand cash flow forecast, a break even analysis plus projected Financial accounts for up to 5 years in advance .
Business Pitch: Essentially this is your business presentation which you ought to prepare for with figures and necessary props such as your products, projections. Practice in front of folk who are capable of giving you a hard time. Some siblings are quite good at this .
Know your potential Investors: Before presenting to your potential investors, do some research on them, they often have very good information publicly available to give you the best possible chance of at least knowing what they want in an investment opportunity. There are many other sources of information, so do not limit your self to web based research.
Know the value of your business: In presenting your business proposition, you will certainly need to disclose your valuation of the business which will be the basis of the entry cost to the investor. Don't pick a figure out of the air or simply the amount you want, get a proper valuation done, based on known and projected figures.
Investors exit route: Investors will want to know how they can exit your business , preferably in profit and failing that, with most of their initial investment intact. This needs careful consideration and should be discussed with your business finance adviser.
There could very well be a multitude of other pieces you should have in place before approaching the investors, however, your decision to proceed should be taken by you in consultation with your retained business advisers.
You may now make a list of known family and friends, private financiers, Government agencies offering grants, and banks offering commercial Business loans. In approaching these parties, its important to bear in mind that these are people you might be commencing a long term relationship with , even where you're unsuccessful in your pitch to them at this time. Assuming your business goes forward , you might well be meeting them a few years or months down the line. Be good .