From starting a business to growing a business, securing the right funding is critical to achieving business success. Navid Falatoori, an Investment Executive at the Development Bank of Wales gives his advice on raising investment.
People buy from people so if you’re looking to raise investment then your number one priority should be your people. While a strong business plan is a must, investors will definitely want to see your passion and enthusiasm, as these are the essential ingredients for business success.
When speaking to an investor like the Development Bank of Wales to raise capital, it’s not just about convincing us that your product or service is going to capture a meaningful share of a large and growing market. It’s about showing us that you and your management team have the qualities necessary to make that growth happen, and also to be able to withstand the inevitable challenges along the way.
So, what do we look for when considering an investment? Market demand is obviously a key factor and your business plan must demonstrate that there is real opportunity to develop a market so that you can grow your business. We’re looking for opportunities that can start-up and scale-up!
Communicate (and communicate…)
Good communication between parties is also important. Poor or slow communication doesn’t bode well; it’s important to show investors what you can offer and demonstrate hard evidence that supports your business plan.
Get the numbers right
Gathering and presenting all the necessary paperwork in a timely manner should be obvious, as should the need for robust financial forecasts. Make sure you have a clearly defined proposition explaining your business strategy and the potential for growth. A well-written business plan won’t guarantee you investment but no plan could well result in an application for funding being turned down. There is plenty of advice available if you need help; organisations like Business Wales offer a great support service.
Speak to us
The amount of paperwork you’ll need to complete depends on the size of the investment. We’ve spent a lot of time simplifying our investment processes to ensure that our application procedures are simple and straightforward. However, don’t underestimate the time and effort required to raise finance.
We have a small loan, fast track application process and an online eligibility tool.
Finally, be clear on your objectives. Investment is a two-way deal. You need to make sure that you are getting what you need from an investor. This may not just be about the money. Support to facilitate growth; proven industry experience, advocacy and connections may well be just as important as the actual funding. Get it right and you won’t look back.