Corporate Finance

Lynne Brooke discusses raising finance with Jamie Veitch of Sheffield Live

Lynne Brooke was interviewed on Radio Sheffield on Friday 19 January and spoke about entrepreneurs, SMEs and impact investors and the roles of NEX, a recognised investment exchange, and SSX, the world’s only Social Stock Exchange. All entrepreneurs ought to listen to see how they can be helped.

Business Plan

Do not follow precedents on the internet:

  • First draft: Write a stream of consciousness,
  • Next draft: ensure to use these headings:
    • Describe Product/Service
    • Why you are different
    • Business conducted to date and proof of concept
    • Size of the market and what you hope to capture
    • Marketing strategy – include social media
    • The Team with full CVs for CEO, COO, CFO, Marketing and Technical directors – consider whether you need an experienced non executive director who will lend their name and knowledge.
    • Competition
    • Money to be raised and how it will be used
    • Last year’s accounts, financial projections for the next 3 years showing income and expenditure and net profit before tax
    • Financial projections will need to be endorsed by an accountant in terms of them having been prepared on fair and reasonable and reasonable assumptions and a consistent basis.
  • How much you, friends and family are prepared to invest.
  • Target the appropriate potential investor, there are many from angel investors through to venture capital hedge funds and NEX Impact Investment Exchange.
  • You need a competent adviser to give you the best chance whether you are a start up or a business that needs mid term financing.
  • This technique applies to everyone wanting to raise money –commercial companies, social enterprises, charities or hybrids.
  • You have to be sure that you are using the correct corporate vehicle to be able to raise funds for growth of your company.

Be fit for Investment

You need to be fit for investment and there are 5 keys areas:

  • Trading conditions for the supply of your goods or services
  • Employment policies, contracts and procedures
  • Trade mark your brand and protect your know how
  • Use a vehicle that is appropriate for your business; a limited liability company or it could be some form of social enterprise.
  • Corporate governance to set out the rules i.e. what happens if a partner/shareholder dies or leaves and how will disputes be handled to be contain in bespoke articles of association..

The way in which we help entrepreneurs is to decide what suite of documents they need, agree an up front fee that they can afford the balance over a period of time at a rate which suits their cash follow.

If you want to know if you company is fit for investment ring Lynne Brooke on 07717 813925