Growing your startup/existing business or project

Every day i am approached by multiple individuals or companies that have the best business out there. They provide me with data driven documents, analytical information, projected financials (based upon the best case scenario) and they seek investment capital (debt or equity).

In most of the cases i ask them 5 simple questions:

1. What do you have that is different from your competiton (how is it disruptive, what places this far above the competiton).
2. What have you achieved so far and with what amount of investment. Where did these funds come from (and in exchange for what).
3. How long have you been working in this area or business.
4. How much money are you looking for, for what and how will these funds be repaid. What is the plan going forward (in case the investor wants an exit).
5. How many other companies or people like myself have you spoken to, what was their response, are any of them still working with you. Total transparency is needed on both sides if this is to be successful.

It appears to me that most people take one of the following 2 paths:

1. They decide to contact everyone and anyone who they think can help them identify the investment they need.
2. They hire a specific company or companies, pay them some fees, these groups fail to deliver what they promise, they bring no investment but produce wonderful looking data filled documents that are only useful in the due diligence process.

I then find, when i am approached, i am already judged for other paid groups failures, i am expected to produce rabbits out of hats with no working capital when i actually do have all the necessary contacts.

My advice to people looking to expand, start new areas or projects, is to carefully think about the following before you hire a company.

a. Have you spoken to the group or company you want to help you.

b. Have you shared information with them under an NDA/NCNDA.

c. Have they asked questions on the business or project.

d. Have they explained the process to achieve the funding success you seek including timeframes, costs, documentation requirements, due diligence processes, communication with interested groups and how the investment process will be completed.

Any project or business has the chance to be successful if they have the right business plan, team, idea/product, competitive edge, relationships or strategic partnerships.

If you want to have your project reviewed, an honest opinion given on what can and cant be achieved, what is needed in order to be successful, we would be happy to have a look at what you have.

Dont waste time and money waiting to see if groups you have engaged deliver what is expected, first of all get an opinion on whether what you have is doable and achievable first before you commit to investing funds.

Always remember the money you invest going forward is in your business and the potential your business has (so in effect yourselves and not the people bringing the investors). If you have belief in what you have then invest your money to hire the right person or group.

Thanks

Steve Curtis - BSC, MBA, ME, MCP, FPC, AFPC

[email protected]