Investment readiness is vital!

Company Directors who are seeking to raise capital should ensure that the company is “investment ready” before attempting to raise capital. “Investment readiness” applies to a wide number of issues including:

The identification of a product or service that the company is going to provide.

Steps have already been taken to protect the company’s intellectual property by a patent application.

In some cases, this might not be the best move, however the directors should be in a position to explain why they have not sought a patent on their intellectual property.

An initial leadership team should have been assembled with job descriptions.

If a leadership team position has not been filled at the time the company is seeking to raise capital, the identified position should be included in the documentation to be supplied to potential investors, with an indication that the company is still completing the application reviews.

The Business Plan that incorporates the vision of the leadership team and articulates the vision for the next 3 – 5 years incorporating comments on:

• The company’s “goals”

• The “assets” that the company is developing

• The “metrics” that will be utilised to measure performance

• An overview of the “strategies” that have been developed

• The “systems” that the company will be utilising

• The “execution plan” that will create value for the company

• A realistic “exit strategy” should be included in the business plan

• Predictive Financial Accounts incorporating budgets, key drivers, cash flow forecast, projected balance sheets for the next 3 – 5 years, KPIs and metrics.

The Directors need to have an idea on who the potential investors might be and have prepared suitable documentation to be handed to those potential investors.

Need help with establishing strategies for the development of “investment readiness status” in your company? Contact Towers Business Development on 1800 232 088 or email .