Forums: Discussions for entrepreneurs and small business.

Paul,

To us, being Capital Ready means that everything is poised to move forward once the provider of capital is “on the scene”. The objective is to avoid any backtracking or otherwise halting the progress toward the receipt of the capital.

What specifically is needed to be “capital ready” will depend upon many factors including:

1. The stage of your business
2. Type of business
3. The capital strategy –  both short and long-term
   1. How much
   2. Purpose
   3. Method
4. Any previous capital activities

I`m sure you`ve heard that a basic business plan is a must. While this is by no means a complete list – here are a few more points to consider:

1.      What is your capital strategy?

a.       How much, for what purpose, method <debt/equity>

b.       Sources 

2.      Is the business properly structured with all the necessary documentation to accept the capital?

3.      Do you (and your team) know what to expect and are you prepared to “handle” it?

4.      Do you know what questions (FAQ’s) that will be asked and are you prepared to respond?

5.      Are the necessary / appropriate documents in place (available) for the “due diligence” phase?

6.      What capital “magnets” can be included– to reduce the perceived risk?

7.      Are you clear about what you will do in order to acquire this capital - more importantly are you clear as to what you are not willing to do?

8.      Is your financial house in order?

9.      Have you developed the appropriate language of capital?

I hope this helps. If you`d like to delve into the specifics of Capital Ready for your situation - send me a PM.