The Five Questions You Must Answer to Get Financing Help By William Cate Published November 1999 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]1. What do you have? Is your company making money? If you are a startup company, you will find it hard to raise money. The industry in which your company operates is important. If you are in a fad industry, your odds of finding money are better. Where are you selling your product or service? The larger your market,
better your odds of finding money.
2. How is
company structured? You must be incorporated somewhere. I think that a company with an international market for its products or services should incorporate in a tax haven. Your management team must have a relevant education and work experience to make your company succeed.
3. What do you want? You want money. How much money? Do you need all
money now or can
investment be spread over time. You are more likely to find money if
investment can be spread over time. The reason is
investors have
opportunity to see their initial investment produce positive results before they risk more money on your company.
4. If you had what you wanted, what would you do? Expanding
company's market is your best answer. Poor answers are R&D, raise managements' salaries, or paying down debt. If your company isn't growing, why should anyone invest?
5. What are you willing to pay for help? Concisely answer what you are offering an investor to risk their money on your company. Do you intend to rely on professional help in raising
money? Then, concisely answer what you are willing to pay
professionals for their help. If you are unwilling to pay
current cost of investment, you won't find an investor. If you aren't willing to pay for professional help, you won't find professional help.
The trick is to summarize your answers into a 300-350 word email message. I'm willing to read your summary without charge. Most people in
finance business will review a clear, concise, and short email and reply with a "yes" or "no." Please don't send me your investment package unless I indicate an interest in your company. -----
* Liquidity