Planning for capital raising: Develop an effective strategy
As a business owner, it can be quite overwhelming to assess your options for capital raising. You need to rethink your game plan, develop strategies and have a right structure that could help you identify your prospective investors and provide them with what they might be seeking in a potential investment-worthy venture.
Following are a few steps that can help you build an effective strategy to raise capital.
Embrace the power of internet
It is no secret that the power of social media and internet is transforming the world, and also how the deals are found and accessed. However, a large number of businesses have still not experienced the power of internet to develop their capital raising strategy. Many businesses still adopt an old strategy, which includes listing a line about their business.
For businesses to find potential investors, it is important to be active on social media. This medium can be used to find potential venture capital investors and angel investors.
But remember, you need to be proactive and build an effective strategy to find investors and connect with them. This is easy said than done. This is when professional assistance can help. Experts, well versed with capital raising process, can effectively guide you and help you maximise the benefits that you can get from social media and internet when it comes to capital raising.
Don’t forget to start your investor relations program
It is important that you have an Investor Marketing or Investor Relations program from day 1, although you may have 2 or 3 investors.
Staying regularly in touch with your investors and key stakeholders can help you create a good marketing campaign throughout the process. These marketing materials can help you in your endeavour to raise capital.
Start briefing on a monthly basis and the communication material can be effectively used for your PR campaign.
Link your company news through media channels
Broadcast your company announcements as much and as wide as possible. Consistent announcement of your company news and achievements can help you reach much wider audience. There are some companies that develop effective campaigns by subscribing journalists, customers as well as other stakeholders through newsletters.
Go for crowd funding
Crowd funding is not new, but its integration with social media has made it an efficient tool to find investment capital. It can work wonders if you are active in industry specific forums or your localities or your target market.
For example, if you are into the business of developing dental equipments, a right approach can help you raise capital from doctors and dentists through crowd-funding website, given that they understand the niche of the product.
Go global Businesses seeking capital can now have access to much wider choices in terms of capital investments, owing to the emerging markets.
Globalisation and social media are the two most essential factors to be considered by capital seekers. Considering the fact that your ideas and products may be in relatively higher demand outside your local markets, you cannot afford to ignore to go global.
If you are looking for capital raising Australia, you will find that a large number of venture capital funds are setting up their operations overseas to identify as well as invest in new opportunities.
Global executives
One of the best ways to find investors is contacting executives in your industry. If you are in the mining sector, you can look for strategic investors from the mine operators in the vicinity. Similarly, when it comes to IT industry, executives from well-established software companies usually invest in new start up IT companies.
Find out the public listed companies in your industry and identify who their executives as well as decision makers are.
Capital raising Sydney or in anywhere around the globe is necessary for a business to grow and flourish. A right strategy can help you achieve positive results. So, understand your business needs and set your goals to form a strategy that helps you meet your objectives, ultimately helping your business to expand.