Raise the right finance for your company growth

Question:

Do you know how much you need to invest, and where to get this investment?

Answer:

At The Alpha Group we make certain that you clarify both the purpose and the amount of additional finance your company needs.

So, how does this happen?

Easy, its a six step-process using the power of the peer-to-peer advisory board.

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Firstly the peer-to-peer advisory board help you sharpen your key FastGrowth™ goals.

The peer-to-peer advisory board help you answer the following questions:

Over the next 1 to 2 years, what is your key growth goal for your company?

(e.g. successfully launch an online business generating 10% of annual sales).

Make your goal bold yet measurable.

Write your goal below in 8 to 12 words:

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Over the next 3 to 5 years, what is your key growth goal for your company?

Make your goal bold yet measurable.

Write your goal below in 8 to 12 words:

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How will the achievement of these goals affect your need for additional finance?

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Secondly the peer-to-peer advisory board help you assess your current situation.

With the changing economy, growth opportunities for companies need to be seized as soon as they present themselves. You may now want to rapidly and substantially grow your company (e.g. to launch a new product). However, to achieve your desired business growth you may need to raise additional finance. Some strategic problems that you could face include your uncertainty about the amount of finance that you require and not knowing the most appropriate sources.

On a scale 1 to 10 (where 1 is barely adequate and 10 is outstanding), you rate themselves on the following:

Purpose (you are clear why you need additional finance)

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Amount (you know how much finance you need)

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What is your strategic conclusion on your ratings above? Please write this below:

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What will be the strategic benefits to you and your company from successfully implementing your plan to raise the finance for your growth.

To you personally:

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To your company:

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To your team:

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To your potential investors:

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Thirdly the peer-to-peer advisory board help you decide your purposes for the finance they need for your growth.

In the list below, identify your purposes for the additional finance. Add your own additional purposes as required.

Now asterisk up to three of your purposes. For these three, estimate how much finance you need and when you require it by.

A. What is your purpose for the additional finance?

a) Increase your working capital (e.g. for more stock)

b) Increase capital expenditure (e.g. for your equipment)

c) Expand your capacity (e.g. recruit more people)

d) Launch/acquire a business

e) Fund a joint venture

f) Buy out a shareholder

g) Develop your new products or services

h) Market your business

i) Buy larger premises

j) Expand into new geographic areas

k) Develop your online business

l) Develop your export business

m)

n)

B. How much finance do you require (estimate) and when do you require it?

a) In less than 6 months

b) In 6–12 months

c) In 12–24 months

The total of your required additional finance for your three key purposes

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Fourthly the peer-to-peer advisory board help you Identify your potential finance options.

Shorter time/lower risk

a) Retained profits

b) Unsecured loans at low interest from family & friends

c) Loans from your Directors

d) Directors’ salary sacrifice

e) Additional credit from your suppliers

f) Payments in advance from your customers

g) Seed investment for start-up technology businesses

h) Stage payments to suppliers

i)

Shorter time/higher risk

a) Shorter term bank loan (less than 2 years)

b) Corporate credit card

c) Invoice finance

d) Invoice factoring

e) Asset based finance

f) Hire purchase

g) Bank overdraft

h) Lease purchase

i) Refinance your existing assets (e.g. equipment, vehicles)

j) Payroll finance

k) Delay payments to HMRC & other creditors

l) Increase your prices

m) Equity investment by suppliers

n)

Longer time/lower risk

a) Trade finance

b) Business angel investment (<£250k)

c) Crowd-sourcing investment (i.e. attracting a number of small private investors)

d) Government grants, particularly through universities

e) Government loans

f) Corporate venturing (i.e. attract a big company to invest in your company)

g) Commercial property mortgage

h) Trade finance

i) Sell off your under-utilised equipment

j) Sale and lease back

k) Sell off existing written down stock

l)

Longer time/higher risk

a) Long term bank loan (i.e. longer than 2 years)

b) Mezzanine finance (providing the lender with a share in the future success of your company)

c) Funding circle (i.e. obtain small loans from a number of individuals)

d) Franchise your business

e) Debenture

f) Venture capital investment (£1⁄2m to £5m)

f) Private equity investment (>£5m)

g) AIM flotation

h)

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Lastly the peer-to-peer advisory board help you create your plan to raise the finance for your growth.

Your purpose for the additional finance

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How much you require and when you require it

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Your potential finance options for this purpose

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The profound impact on you and your company of raising the right finance for your company growth is that you identify and obtain the best finance option to power your company growth.