Raising Capital
What is it?
When small business owners have ideas or dreams that are out of reach of their own wallets they turn to outside sources for funding. In return for capital they must either give up an equity stake in their business or sign a loan document guaranteeing the borrowed money will be paid back along with a set amount of interest.
Why is it important for small businesses?
In almost all cases businesses must invest to grow. The best businesses with proven products often need to invest more cash than the business is generating to keep up with their own growth. Entrepreneurs must be able to navigate the complexities of acquiring outside funding if they want their business to live up to its full potential.
How do you do it?
Getting funding from a bank or private investor requires a lot of homework. You need to assemble the current business financial statements, future financial forecasts, a business plan which includes detailed operational and financial details, as well as a fully detailed plan for how the funds will be invested and what return is expected. Once you’ve pulled that together the next step is shopping your pitch to investors and the right banks.
What can 7L do?
We can help you perform all the necessary analysis and put together your investor/bank presentation. Additionally we can advise you on your various options for funding including the benefits and drawbacks of each, as well as the best institutions to engage.