Ask the Expert

March 28, 2013

By Greg Bolton, head of corporate finance at RMT Accountants & Business Advisors

Q. I’m considering looking for outside investment to bring into my company to help us implement development plans.  What should I be looking to do now before I fully instigate the process?

A. Bringing outside investment into any business can provide a huge boost for its operations, and with the north east receiving a distinct advantage over its competitors through the local availability of the Finance For Business North East funds, it’s a route that many dozens of firms have successfully travelled.
Much of the management data and company information you will need for this process will naturally fall out of your every day operations, but there are three key things to consider before you start the process of attracting potential investors.
Firstly having a clear vision of what you actually want to raise such investment for.  Is it to enter new markets, recruit expert staff, invest in new equipment, open new product lines or secure additional working capital to take on bigger projects?  Potential investors aren’t likely to be keen if you can’t clearly and concisely summarise both your commercial objectives and definition of success are
Secondly, decide how much you actually need to implement these plans, and try to be as accurate about it as you can.  Being modest about or underestimating what you need, and then running out of money before you’ve completed implementation is a very real danger, and investors have no compulsion to fill a shortfall that shouldn’t have arisen in such a situation.  If you need more than the £100,000 you think it’s more likely you’ll get, then say so – investors will back you if the strength of your business case warrants it.
Finally, identify what’s going to make your business stand out to investors and focus on doing everything you can to build your investment case around it.  What do you do better than everyone else, how is this going to improve with a capital injection and what are your investors going to get out of it?
Attracting outside investment requires a big commitment from all parties, so give yourself the best possible chance of success by preparing properly before you start your investor search.
RMT provides the full range of financial and business advisory services through its Corporate Finance, Recovery & Insolvency, Medical and Specialist Tax divisions.  For more information, please visit


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