Raising Startup Capital

Raising Startup Capital

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If you wish to raise money for small business with growth potential, it is worth checking out the capital raising platform the Australian Small Scale Offerings Board. To list your business on the platform there are a number of steps to go through. These are:



1. Evaluating.

Using your companys projections a capital raising scenario is developed by your sponsoring member, to establish if your business has the growth potential to attract investors.

2. Preparing

Here we build your offer document and executive summary, convert your company to public unlisted, establish a board with a minimum of 3 quality directors, establish a trust account and share registry service. Check website and company marketing collateral serve the offer, as well as create a video which represents the offer. Make sure the IP is secured. Establish business milestones. Build an attractive valuation.



3. Discovery

With your sponsor - run a discovery meeting with senior managers and board members to establish all the potential followers and advocates for the business. Potential joint venture partners, distributors, channel partners



4. Collecting

Build a list of followers to communicate your business milestones and successes. Many have self managed super funds and may be interested in participating. They may have friends to refer and they may direct you to potential angel investors. Events that can be hosted:

Founders Lunch

Factory Visit

Product Sampling

Open House

Seminar

Technical Briefing

Customers Briefing

Strategic Partners

Industry Experts

Current Investors

Fans & Clients

Graduates, Patients

Past Attendees

Landlords

Lawyers, Accountants

Towns Folk

Angels & Private Investors



5. Delivering

Go live on the ASSOB platform. Work a series of public relations announcements promoting business opportunities. Communication is key at this stage. Communicating to your investors and followers. Producing quarterly reports and holding an annual general meeting. Responding in a timely manner to Investor Requests, reporting on milestones and growing the business as outlined in the offer document. Any changes in direction, need to be communicated.



Raising money for small business is not without its challenges. But for the entrepreneurs with a desire to see their business grow in value, attracting equity capital is the key to growing in a timely and effective manner.





About the Author:
Kate Ingham is a Partner with Alchemy Equities, a boutique advisory firm located in Sydney Australia. Alchemy is a sponsoring member of the Australian Small Scale Offerings Board and raises capital for high growth businesses. For more information on private equity funds and venture capital australia See http://www.alchemyequities.com.au/



Article Originally Published On: http://www.articlesnatch.com


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