Steps to Growth Capital Self-Study GuideOverview

Getting Started

There is no shortage of funds available to small and medium-sized growth-oriented firms. So why do so many entrepreneurs have difficulty finding the money they need to help their businesses grow? The problem seems to be that many small and medium-sized businesses don't know how to go about raising money from different types of lenders. If you don't have a clear strategy for raising capital, you probably won't find any.

This Steps to Growth Capital self-study guide is designed to help you develop the plan, the materials and the confidence to go after the equity financing you need to launch your business opportunity and achieve your business goals. This guide has been prepared for potential or established owner-managed companies that want to learn about equity investment as a means to funding growth.

Investor-Ready?

Most small companies are simply not "investor-ready" — investors feel these entrepreneurs don't have what it takes to even be considered for financing. They haven't analysed their financial needs, haven't demonstrated their investment potential or management capabilities, or haven't produced an effective investment proposal. Why?

• Some of the problems that entrepreneurs face stem from a misunderstanding of what risk capital is and how it differs from traditional financing.
• Entrepreneurs may not have one of the kinds of businesses that interest investors.
• Many entrepreneurs who are good candidates for risk capital still need to go through the steps required to become "investor-ready" to understand the needs of investors and demonstrate that they have real growth potential.

This Guide

The Steps to Growth Capital guide will help you learn about risk capital and will prepare you and your firm to go after it. It's designed to be used in several ways, so you can choose what suits you. "How to use this guide" will show you the options.

For an example of the pursuit of growth capital, follow the fictional company New Tech Distributors Corp. (New Tech) as it pursues venture financing. This will give you a feeling for the "real" data and strategic decisions you'll be facing. You can always get to it through the link on the left menu bar.

<< Previous | Next >>