Raising small business capital can be a powerful tool to propel your company to the next level. Instead of having to turn towards the bank, there are many other options to increase your capital. Find four of those ways in this portion of an interview between Dale Beaumont and Peter Gow.
Having run several multi-million dollar business, Peter now consults to some of Australia”s fastest growing businesses and is now the director of Creative Capital.
In your experience, what are some of the ways in which you can raise capital for a business?
Capital relates to investor funding rather than debt funding from a bank. There are four broad sources of capital to fund your business growth:
- Friends and Colleagues – many people underestimate the power of using this group to fund their business. They already know you and have your trust (although relationships may suffer when money is entered into the equation – keep this in mind).
- Private Investors – this type of investor is generally a very astute and successful business person. They may have worked in senior corporate roles or built their own businesses. Their insight and experience can be invaluable, however, they can be very selective.
- Venture Capital Funds – these managers are professional investors with very specific investment criteria and rigorous screening processes. They see lots of business plans and their goal is to select the best CEO and the best business to fund (only a very small number of companies are funded).
- Corporate Investors – many corporates are seeking acquisitions or investment opportunities in companies with complementary products. They bring market access and strong financial support to your business.
For more of this interview and ways to raise small business capital check out “Secrets of Small Business Owners Exposed!“
