For most, the idea of being a part of a reality TV show to grow and propel your businesses is not a focus. However, a lot can be learned through TV shows like CBC's Dragons' Den.
Here are four great tips to make sure you are ready to take that next step:
Know your Dragons. Whether you are approaching one of the major banks, your local credit union, the Business Development Bank of Canada (BDC) or an equity investor, they will all have their own specific questions as to why they should be investing in your business. Do your research before the first meeting to anticipate their questions so you can provide thoughtful, informative answers.
Don't limit your approach. The road to taking your business to the next level may not be an easy one and if you find yourself turned away by one investor, be ready to approach another. Banks, credit unions and the BDC all have strategic investment plans. Your business may not be a fit for what they are investing in at the time, but it may be a perfect fit for their competitor.
It is important to find the right investor fit for you and your business. Finding the right match is important to promote future communication and your company's ultimate growth. If it's not the right fit, don't be afraid to explore alternatives.
Be business plan ready. Prepare a thorough business plan. Include a concise description of your business, highlighting your passion and enthusiasm to entice the investor's appetite to know more and read on. Within your plan provide a detailed analysis of your market, customers, competition, marketing strategy, operational plan and key employees' knowledge and skills.
Crunch the numbers. Too often, an investment is overlooked by an investor because the numbers to support the proposal have not been provided or are not considered reliable. Be sure to provide historical and projected financial statements to show your plan has merit.
The path to business growth may not have all the lights, cameras, and glam that TV shows do, but there are definitely new and exciting opportunities for your business. Make every opportunity count and have your Crowe MacKay advisor review your plan and ask the tough questions that are often overlooked. We can add significant value to your proposal so you can be assured that key details will not be missed in providing clear and useful financial information.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
