subject: Private Equity Funding For Small Businesses [print this page] The private equity finance marketplace provides an essential source of funding for entrepreneurs and small businesses.
Expansion funds
Private equity financing provides crucial funding for startups and small businesses looking for expansion funds. There is no doubt that funding is central to the success of a startup, from launch to expansion. But finding equity investors can be a daunting undertaking. Even the most experienced managers and entrepreneurs can readily admit to the perils of finding investors. One of the surest ways to go about finding private equity funding is through a professional fund raiser. Well, you could try finding an equity investor yourself but professionals do it better. Professional fund raisers have a ready list of equity firms or groups they can call and get you going. If your idea, product or service is worthwhile, equity investors gain interest fast in your expansion endeavor. Equity investors want guarantees that your expansion plans will bear fruit. Opting for professional fund raisers cuts down on the time it takes to find a worthy investor. With a quickened process, you can easily find an investor, negotiate a deal and close. In addition, private equity investors dont invest in any company or business segment. Different industry segments have different equity investors. Finding an appropriate equity investor in your line of business makes funding quick and easy. Of course your business must have the requisite strong fundamentals for funding to flow easily.
Saving on time
Equity financing is a tedious and time consuming process. Finding an equity investor is only the first step. A lot follows before the finances are finally in your business account. Therefore, time is everything. For entrepreneurs or individuals not familiar with the process, the services of a professional are most needed. Rookies dont know how to get investors interested in an idea or business expansion plans. If you are a rookie entrepreneur with a fast growing business, a professional comes in handy. The equity financing process cannot be rushed. It is no different from angel investment or venture capital. Each phase of the funding process requires utmost attention, demanding that a thorough proposal be made.
Why you need assistance
There are several reasons why you need a professional fund raiser when closing on a private equity financing deal. Major companies simply employ third parties to undertake the equity deal for them at a fee. But because you are a small entrepreneur, you cant afford major third parties. However, individual professionals can be handy. The professional helps you with crucial phases such as preparing accurate financial and marketing plans for your proposal. The fund raiser also creates a favorable timeframe within which to find, negotiate and close a deal. A professional is also handy in answering questions from investors and planning meetings. Most importantly, the professional fund raiser helps you close the deal with a favorable agreement. He/she drafts the final agreements and works in your interest. Finding an equity firm to finance your expansion shouldnt be such a hard undertaking when the right approach is engaged. Professionals familiar with the private equity industry can expedite the process and help you secure funding.
