subject: Raising Startup Capital [print this page] 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.
