photo credit: cwbuecheler

Many start-up companies and even savvy business people are not aware of what it takes to find capital to launch their new idea or propel their business forward. There should be no shame in this because if you were an expert on it you would be in business finance and not the industry you are in. You are good at what you do so taking the time away from that can be detrimental to your business. One mistake 95% of business owners make is trying to learn and perform too much themselves, and not rely on outside help.

To structure a financial deal it takes good business planning and good business planning should involve financial planning and structuring. Unless you have a rich aunt or can self fund your project, you are going to have to sell yourself, your team, your idea, your business, etc to someone. Whether it is the manager at the bank, venture capital fund managers or private angel investors you usually only have one chance to make an impression.

In business financing, only 30-40% of deals are looked at seriously if they have collateral behind them and only 5-10% are taken seriously in the angel and venture capital world. The percentage of actual funding is even lower. These statistics are not to discourage you but to help you understand the importance of getting the right assistance. Raising money can become a full time job and if you are running a business you already have enough work to equal a full and part time job, so why add more to your plate than necessary. If you do there is a good chance that you are actually setting yourself and your business up to fail unnecessarily.

So understanding that raising capital is a full time job if done by you, what is the best way to ensure that you get the job done? The answer is hire it out and just oversee it as you would any other segment of your business that you are not an expert at. Take marketing for an example. Companies such as Coca Cola and Nike do not typically create their own commercials, brochures, logos, etc… , they have agencies that do it. You should take the same approach with financing your business.

When hiring a consultant, hire one that you can present your concept, brainstorm with, and have them do the job for you. Business finance consultants are invaluable to help start-up companies as most start-ups have a concept or idea and are overwhelmed with all the things involved to get the idea to market. To create a successful start- up you have to have a plan and a solid one. It does not mean that the plan is set in stone and you have to follow all the things you say to the letter. Good businesses are flexible and use the plan as a road map, in which they may have to take a different route to make it work better. Consultants help you down the road faster and should be honest of how and when you might need to take a detour to be successful.

An example of this would be raising capital. Different investors want to see the same overall structure in a plan but each one could have a different emphasis. One might think the strength of the team is most important, another might fund on the return on investment time frame, and another could have an entirely different focus. Investors will look at things different than lenders and venture capital will look at things different than angel investors. A good business finance consultant will understand this and will also know what road is the best to take. They will also have different sources they can present your completed plan or prospectus to but allow you to seek out your own as well.

An established business will also benefit from a consultant as although you could be in business for years the market is ever changing especially in todays world and what was true yesterday or a few years ago is sure different today and probably will be tomorrow. A good consultant keeps up on what the reality of today is and plans for tomorrow.

No matter what industry you are in these are just a few reasons not to go it alone. Before you head down the wrong path or need some help making a detour, contact a business finance consultant today. Your business will be better off for it.

Want more information about business finance consulting? Venture Works Capital helps many businesses properly prepare for financing fro start to finish. Visit our website for more information. http://www.VentureWorksCapital.com