How To Prepare Your Business For Funding

hile you may be thinking of growing your business in the future and looking to get funding to support this, it's important to make sure you prepare your business for this step to make it as smooth as possible.

Here are 4 steps you can take to help prepare your business for this;

Business plan

Make sure you have a bulletproof business plan in place. This is how you will secure potential investors or lenders as it needs to give them a clear understanding of your vision and business goals. Make them aware of risks that could arise and how you will work with them to ensure the best outcome.

A business plan needs to include:

• Executive Summary
• Business Description
• SWOT Analysis
• Market Analysis
• Financial information, planning & factors
• Client Base

Updated Cash Flow Forecast

You should ensure you are managing your cash professionally to demonstrate to potential  investors and lenders that you can handle the cash flow effectively. Especially if you would like to grow a business it is vital to provide an up to date cash flow forecast. Ensure to make clear how much cash and working capital is required to operate your business.

Prepare Suitable Documentation  

To make the application process a smooth ride, it's important to have the correct documentation all prepared. Here are some documents that may be required

• Turnover for the previous year
• Profit from previous year
• Last 3-6 months bank statements
• Latest accounting data

When is the right time to seek funding

It’s important to know when your business is at the right place to reach out for funding. Are you struggling to meet demand due to lack of resources; staff, equipment? Picking the perfect time to seek funding is important as you can deliver a strong pitch backed up by some current struggles that could be resolved with funding.