FINANCIAL BACKING FOR A NEW BUSINESS IDEA, COMPANY, INVENTION

Financial backing for a new business idea * company * invention * financial backing for a new business idea * venture capitalist * business angels

Knowing where to turn to and how to approach any venture capitalist or business angel for financial backing for a new business idea, company, new invention or product is just the first of many problems to overcome. If you watch any programmes on television where budding entrepreneurs are seeking funding, you will have seen that most of them are totally unprepared, naïve and without any idea of what questions they will need to be able to answer.

Indeed, many are shot down in flames before they have hardly started their sales presentation because they have failed to look at the drawbacks to their idea and just focused on the positives. It is all too easy to get carried away with your own enthusiasm without seeing what are obvious drawbacks and problems. Enthusiasm is an essential element to the success of any new business idea but you must recognise any objections or drawbacks and have a counter argument that overcomes these objections.

The problem with financial backing for any new business idea as explained on the previous page is that, whilst it provides the investment needed to pay for the launch of a new product, service or invention, the money will run out or funding stopped before the new business starts to turn a profit.

Everything has to be aid for and you as the Principal will still be running around like a headless chicken trying to do too many jobs with too many responsibilities. It is a recipe for disaster. This is why the best business decision you could make right now is talk to us.

Financial backing for any new business is normally required for:

• Marketing
• Advertising
• Website design and Internet marketing
• Staff salaries
• Other miscellaneous overheads

This means that money is being paid to service providers outside of the company and this money has to be replaced by generating sales that the investment in marketing, advertising and internet presence are expected to generate. If the new product doesn't take off as expected, the sales don't generate enough cash flow, the funding ceases and in the worse case scenario, the business goes into liquidation.

In the meantime, your financial backers want answers, you are under pressure to deliver and all the tasks and responsibilities rest on your shoulders. This is why it is so important to have us as your business partners because we don't put the financial constraints on a new busy that cause so many of them to fold in the early years.

When we back a new company we:

• Put the manpower in place with the skills and experience to handle the jobs you are not qualified to do. These can be accountants to act as the financial director to manage the cash flow. Marketing experts to act as the Marketing Director, experienced advertising consultants, business analysts, Sales Directors, PR consultants and a full team of IT professionals. It is rare that we don't have the people with the experience necessary to run any new company.
  
  
• We then provide all the marketing, advertising, sales support, internet site build, development and marketing, PR and business mentoring leaving you to concentrate on what you do best.
  
  
• We take an equity share in the business, participate at what ever level is required and take on the tasks you need to delegate. We don't take any money out of the business until the company can afford to pay us, is floated or the decision is made to sell. At which point we all make money.

By removing the enormous overheads new start up companies face in the early years when they can least afford it, buys the time needed to establish the business on a sound financial footing and takes an enormous amount of pressure and responsibility off your shoulders.

Venture capitalists and business angels are often wolves in sheep clothing, they don't show their teeth until they are ready to make a killing. We make no bones about the fact that we are in business for profit but we take care of all our business partners and believe that happy partners make for good business relationships. We make businesses more efficient by providing everything they need to succeed and by working together because we all share the same common goal. This is what real business angels do.