Whether you are a start-up business or a business that wants to grow the company to the next level, you may need some form of cash injection to help you on your way. But asking for money isn’t that simple. Any money lender will want to see a thorough business case and financial projections, to help them decide if investing in your idea is going to be a profitable one, or not. The business advisors at RBSS Consulting in Romford, Essex, help companies of all sizes get finance ready. Here is our four-step process that we will take you through.

1. Business Goals and Mission Statement
You’ve decided to take the plunge and begin the rewarding journey of entrepreneurship. Self-employment or starting your own business is a noble calling and is not for everyone. Do you want to sell products, services or both? What are your business goals? Do you have a mission statement? If you don’t have answers to these questions, not to worry. RBSS will help you define your business goals and mission statement. This is a necessary and vital step in creating a business plan. When networking or attending a social event, when people ask you, ‘What do you do?’ you will have a clearly defined answer formulated. ​

2. Brainstorming
Entrepreneurs often work in solitude without having anyone to bounce ideas off of. Our business consultants are here to help you flesh out your concepts. It’s one thing to repeat your objectives to yourself or even write them down on paper. It’s a completely different ball game when you communicate your thoughts out loud to someone who can give you feedback. A mundane scheme can become revolutionary. You may be leaving money on the table by not considering other ways to diversify your product or service offerings. By diversifying, you increase your market share. A larger market share is usually indicative of more revenue and what business owner doesn’t want more revenue! ​

3. Research Demographic and Competition​
Who is your demographic? Where are they located? How will you reach them? What are their spending habits? These are just a few of the questions we will ask you so that you can eventually build a profitable enterprise. Many novice entrepreneurs make the mistake of asking these questions after they’ve had their soft opening. If the right questions are posed and answered before opening, businesses would last longer and be of greater good to society. Are there other businesses like yours in the area you plan to serve? Do these businesses serve the same target group? Our expert business consultants will help you pinpoint your digital and brick and mortar competition.

4. Business Plan​
Perhaps your parents will lend you money without a business plan, but a bank won’t. An investor, whether a bank, angel or venture capitalist worth their salt will need to see a clearly defined and well-executed business plan before they will even consider your solution and give you access to finance. All of the research results and questions answered will go into your business plan. This plan will be clearly formatted with every ‘i’ dotted and every ‘t’ crossed, complete with graphics, tables and examples. If you’re not a finance person, we have a consultant on staff that can generate your financial statements. This business plan will be the key in your success towards acquiring financing. 
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5. Due Diligence
There are the mundane but necessary things to make sure you have in place and up to date.  They are the more legal requirements that we have to make sure you have in place.  They relate more to the directors or owners of the company.  This is in order to comply with the Anti Money Lending and Know Your Customer rules.  They are the proof of identification, proof of address, a few months’ business bank statements and sometimes a CV for the directors. In some cases you may be asked  for a credit report.  We do this to make sure that these things don’t end up being the stumbling blocks after all the hard work has been done.  Again, don’t worry about a thing. An RBSS Business Advisor will help you make sense of all this on a one to one basis.

What type of finance can RBBS Consulting help you get access to?
There are a number of ways for you to raise finance for your business. Here we explore the common avenues:

• Peer to Peer Lenders (P2P)
• Merchant Cash Advances
• Crowdsourcing
• Unsecured loans
• Secured loans
• ​Start-up loans
• ​Invoice factoring and
• Asset Financing

 
​If you want to find out more about these options, they are explained on our Raising Finance page.
What's stopping you? Call the business consultants at RBSS now to help you get your business finance ready.

The type of finance you choose will depend on what sort of business you are setting up, how much capital you need and what you will use it for. For example, you could:

Use your own savings or personal borrowings to get the business underway, especially if you can’t get finance or investment from external sources.
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Borrow money from family or friends. But be careful. It is often hard for them to say no, but what happens if the business fails? How would you pay back their money? What strain would that put on your relationship. Are they ending you the money, or investing in a share of your business? Remember to put things in writing.

Borrow from a bank if you have a credible business plan and can offer some security. If your business is seasonal in its cash flow, it’s essential to be able to clearly illustrate these to your bank so you can plan an overdraft. Many businesses use overdrafts for day-to-day borrowing and to manage cash flow, and loans for long-. You may want to use funding to finance large purchases such as equipment. When considering bank finance, it is generally a good idea to take professional advice from your accountant or business adviser.

Can you secure outside investors? Perhaps you are willing to sell shares to business angels or venture capitalists. This can provide short-term finance without the need for repayment. Having investors can also bring in additional business expertise. When you hand over shares to investors it is likely that they may want some control over its management.
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Do you qualify for a grant? Grants or government supports can offer cheap financing, and often come with business advice or consultancy. However, there is usually a lot of competition for grant schemes, and you will invariably need to meet various criteria first.

For those unable to get bank finance, you could consider commercial lenders – such as insurance companies and building societies. These tend to have lower interest rates. However, commercial lenders are also subject to fewer regulations than banks and so you may have to provide some security in order to obtain funding.

Consider crowd funding – also known as crowdfunding, crowdsourcing, crowd financing, equity crowdfunding, or hyper funding) describes the collective effort of individuals who network and pool their resources to support efforts initiated by other people or companies. Crowdfunding is used in support of a wide variety of activities, including disaster relief, support of artists by fans, political campaigns, start-up company funding, or free software development, inventions development and scientific research. Crowdfunding can also refer to the financing of a company by selling small amounts of shares to many investors.

Most businesses use a mixture of finance sources. For example, you might invest your own money to cover market research, bring in outside investors to share the risk and borrow from the bank to purchase equipment and machinery.

All of this can be confusing and overwhelming, so it is advisable to speak to a business consultant first. Our Romford-based team at RBSS Consulting can be reached on 0333 355 1696 or by email at info@rbssconsulting.com.

When you talk to different financial and business advisors about getting access to finance, you’ll get similar but varied advice. It all depends on the business’ particular circumstances. RBSS Consulting, a business advice and consultancy firm, has helped raise funds for hundreds of small and medium size investors. The tricky, yet simple, ones are the Angel Investors.

So I put the question to a panel of professionals and these were the answers given by the panel. Similar but still different.

Answer 1
The most powerful thing you can do is show operating profits. If you are in the early stages, show a compelling plan, prototype and comparable companies who are already in your market. Demonstrate how much and when cash flow begins.

Remember that Angel Investors invest in people, just as much as the product or service. They are evaluating if the person who is raising the money has his/her heart and soul in the concept. Are they committed? If not, then they may turn you down. Being ‘all-in’ is the only way to be when building a company, particularly when it involves other’s money.

Assuming you are totally dedicated to making this a success, and depending on what your product is, start selling as soon as you can. There’s nothing that inspires investors more than a sales ramp. If selling you’re not good at selling, invest some money in someone who can.

And finally, don’t give up. It is likely that you will be making many presentations to angel groups before you find the right one. Don’t give up!
 
Answer 2
When approaching an Angel Investor network, I recommend that you enter the opportunity seeking to build a relationship above all. Plan your first meeting as an introduction only and follow up with a second meeting when you pitch your offer. As much as you need the investment, don’t act desperate.

If you have a partner in your business, then perhaps use them to make the pitch with you. Two people sometimes appeal more to a group of investors. Make sure you have practiced your pitch thoroughly so that you are both on the same page. Try to connect through social media networks.

Answer 3
Angel investors look for high quality business cases supported by financials with scenario planning – optimistic, realistic and pessimistic. They need to understand the promoters understanding of business and ability to read the unfolding environment and marketplace.
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Some investors are keen to see what personal wealth has been put behind the idea and the passion displayed to go for the concept over long term.
 
Answer 4
Have a great idea. Know your numbers inside and out. Appeal to their generosity and how the business will benefit from their support. Show them why it is a great investment and why you are worth it.
 
Answer 5
The biggest mistake that businesses make when approaching investor is to spend 90% of the time talking about the product and 10% of the time on the financials. You need to reverse the percentages if you want to engage investors.

If you want to talk it through with a professional business adviser first, contact RBSS Consulting. We offer you real business advice and solutions.

For more information contact RBSS Consulting at info@rbssconsulting.com or 0333 355 1696.

Many businesses reach a point of sustainability with regular income and want to take the next step for growth, but safely. Businesses in debt can often make bad choices because they don’t think they have any other options. At RBSS, our business consultants often get asked the question ‘how do I grow my business without debt?’ We help clients with this situation regularly enjoy creating strategies to help businesses thrive. Although debt can provide businesses with the capital they need to grow, it can sometimes be a risky option and it’s not for everyone. So how do you grow your business without incurring debt?

All business plans, when created with budgets and forecasts, should have at least thought about the idea of expansion. Ideally at the end of each business year there are profits that can be reinvested into the company or put aside for when the need arises. If you are not in that position, there has to be other options.

There are ways to make the most of what you have and grow your business without getting into debt. Let’s explore the options:
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Grow with your business
As mentioned earlier, you can choose to grow with your business; where you invest your previous profits to grow your business. You grow as fast as your sales do. This might be a slow process though and you might hit a point where you need to expand to survive and don’t have the money. That leaves you with a difficult decision to make. Having a business mentor can help considerably to help develop your ideas.

Equity Funding
Equity funding, or angel investors, means that you get investors for your company who provide you with a lump sum of money. However, this option means that you are giving someone else shares in your business and that you won’t have full control. This is not for everyone.

Factoring
Factoring, also known as accounts receivable financing, is where a business sells its invoices, or receivables, to a third-party financial company known as a ‘factor.’ The factor then collects payment on those invoices from the business’s customers.

The main reason that companies choose to factor is that they want to receive cash quickly on their receivables, rather than waiting the 30 to 60 days it often takes a customer to pay. Factoring allows companies to quickly build up their cash flow. This is a great way to get money faster than you normally would have done, allowing you to keep the business moving.
 
Other options include government backed schemes. If you are eligible you might be able to get financial support from one of these schemes.
 
For a consultation with one of the business advisers at RBSS, to see how we can help you grow your business, call 0333 355 1696 or email info@rbssconsulting.com