Securing funding for your small business is as much about the journey as it is about the destination. We look at how a personal touch can make the journey that much less stressful.
Looking for funding as a small business might appear to be a complex and overwhelming expedition. Finding an advisory firm that is exactly the right fit is vital. For many small businesses, a smaller firm provides the personal touch and value for money they need, simplifying the funding process and providing a holistic approach. While larger corporations might have a greater range of expertise, smaller advisories can often provide a more tailored approach to each specific situation.
In this blog, we look at the journey towards funding that a small advisory will take with you.
Frist Step
To begin, your advisor will assist you in preparing to get your business funding ready. This means:
- Making sure that your compliance and statutory affairs are in order
- Ensuring that your business results reflect the ability to be funded
- Aligning your projections and business strategy with your plan to win in the market in the future
- A status quo assessment of your small business’s current performance and future expectations.
It is also at this stage that a smaller advisory will spend time getting to know you and your business on a more intimate level.
Strategic Approach
From here, the advisor will assist in devising an appropriate funding strategy guided by what is appropriate for your individual business, bearing in mind your desired outcome. With this funding strategy, your advisory will identify and assist you in approaching an appropriate target of funders for your specific type of funding.
In-depth knowledge of you and your business will allow the advisory to save time and effort by narrowing down the list of prospective funders to those most likely to show an interest in your enterprise.
Managing Destination Expectations
Along the way, a smaller firm will manage your expectations at every turn. While larger corporations might give you an inflated sense of what the outcome of your funding journey might be, smaller firms with a deeper insight into your anticipated outcomes will give you a more realistic view with regards to the cost of funding, the type of funding, and what collateral is required.
“People come in thinking any bank will fund them, any equity partner will buy into their business immediately and at the price that they think it’s worth. It’s our job to give an honest assessment of a client’s current situation and future trajectory, mapping out ideal solutions to help them achieve their plans,” says Ross Smith of Siyakha’s Advisory Services division.
Overcoming Obstacles
A smaller advisory might be willing to take on challenging transactions and might even work on a successful outcome factor so that their cost varies depending on their ability to help you succeed. After all, why pay a tour operator if you don’t reach your destination?
This approach ensures that your chosen advisory will not only walk the journey with you but will steer you around obstacles and see the journey through to the end, not giving up along the way.
Destination Anywhere
As with any journey, it’s important to choose your travel companion carefully, taking time to research small and large firms to see which will fit your personal and business personality.
