The old saying goes that “The best things in life are free”, but In business, there’s an equally catchy and far more relevant phrase – “Cashflow is king.”

Paying bills, people, investing back into the business, and borrowing debt for growth requires cash at any stage of development and should you find yourself looking for outside investment to keep things moving in the right direction, its time to ask yourself the following:

 

Q 1. How is your cash-flow currently?

Not just currently, but in the future too. It doesn’t matter what stage your business is at, you need to ensure you have enough coming in or calculated to make the leaps and bounds going forward.

 

Q 2. Have you over estimated your business's worth?

It’s ok, you’re proud of the business you’ve created. You have every right to boast about your plans for world domination and just how much that makes your business worth – but is your estimation grounded in fact or fiction? If someone came to you looking for investment in their food stall business and tried to sell you 10% of the company for the same price as 10% of Google would you feel confident in their ability to see things clearly? Don’t over-estimate.

 

Q 3. Have underestimating the value of your business?

Just as common, many business owners seek a lesser amount than is required in the hope it will be accepted more readily. 

Similarly, nobody likes a shy-entrepreneur (if you can believe such a thing exists). An potential investor might be thrilled in getting such a great deal for a stake in your company – but if you under-estimated your worth, that money isn’t going to cover everything you need it to and you just gave a significant part of your business away. Get a professional evaluation.

 

Q 4. What do you need finance for?

Now you have investment, do you know clearly where all that money will go? You should have definitely planned this before, even so, be realistic about what you can do with that money and put it into the areas it’s going to benefit the business most.

 

Q 5. Have you spoken to a business adviser who has been there before?

Mistakes in business can prove costly no matter how much we learn from them. Using the experiences of others and their know-how is not a sign of weakness on your part – actually the opposite is true. A good business owner or manager knows their weaknesses as much as their strengths and will bring people in who can bridge that knowledge gap. Experience in getting finance is no different.

 

 

If you are looking for more information, come and speak with us. ABP work at all the different stages of growth and business experiences. We work collegiately as a large team of coaches and mentors, and with our extensive network of partners. This includes M&A advisers, alternative and traditional providers of finance, accountants, lawyers, and a myriad of specialists.

We can assist with Business Planning, Investment Pitches, Financial Reporting, debt and equity. We have unrivalled access to providers of finance; venture capitalists, angel Investors, institutions, individuals, banks, crowd funding, overseas Investors, capital.

We have people with many years of experience in running businesses successfully, who can guide any business through the barriers and pitfalls.

To find out more visit us at .