It pays to be well prepared £. On the Apprentice, prospective apprentices are put through a challenging interview. Their CV and business track record is analysed by experienced and trusted business acquaintances of Lord Sugar. The edited highlights of these sessions focus on the unsupported claims and inconsistencies in the candidates CV.
On the Dragons Den series it focuses on investor presentations by entrepreneurs seeking start up and development capital. Whilst raising finance is not always as painful an exercise as some of these TV Series portray, it pays to be well prepared £.
When presenting your business story to investors and lenders, it is vital you spend time on planning and preparing your Business Plan. Your presentation must include a balanced factual summary of the background to the business, its business model, market position and financial track record. The difficulty lies in not knowing exactly what the investors priorities are. Also, you must not overwhelm the listener with facts and jargon that obscure the key positive elements of your funding proposal. It Pays To Be Well Prepared £.
When making a credit assessment, the lender wants to get comfortable with the background to the business and the key stages of development. The lender will also focus on the future direction of the business. Particularly in a proposal for a medium term repayment programme. The review of what has been achieved thus far, is the only reliable platform on which to assess the likelihood that future plans are achievable.
If the business or their advisers are in tune with the key areas that drive a lender’s credit assessment. Then they can help isolate and highlight for the lender key facts and figures. This will help advance the arguments for a positive lending decision. If the business is experiencing or likely to experience rapid growth in the near future then a forensic analysis of the story thus far can be vital. It Pays To Be Well Prepared £.
The back-story is important to the lender. Remember to include evidence of hurdles overcome. Investments made in assets and returns achieved. Ideally this should be presented against the backdrop of a considered strategy. This could be controlled growth by acquisition or alternatively building / maximizing value in existing assets. It should all be set out clearly and link into the new lending proposal being presented. A history of achievement is often the only way a lender or investor can really decide whether you can deliver on your plans. It Pays To Be Well Prepared £.
Examples of ways in which you can present some of the strategies you have implemented are set out below:
Average Sales Income has increased progressively over 3 years by x % due to…
Staffing Costs have been reduced from 63% on acquisition of the business to 57% through…
A detailed review of all Non-Payroll costs had revealed a number of efficiencies, notably in utility tariffs, insurance premiums and advertising costs. Annual savings of £ xx identified and implemented …
The Board drew up an acquisition strategy searching for a suitable purchase. They met the following criteria ….5 potential acquisitions were then reviewed in detail before decision taken to purchase XYZ.
Linking facts and figures in this way can be very powerful. The message to the lender or investor can be obvious but also subtle and subliminal. What is important is that you are able to back up what you say.
Please Contact Us if you would like to talk more about obtaining the #dental practice funding you deserve.