Life after debt in 2016?
By Nicola Griffiths, Portfolio Executive
You’re the owner of an established Welsh small or medium-sized
business (SMEs), but what does 2016 hold for you?
Are you happy with your business’ current
revenues and profits or will 2016 be the year your business steps
up a gear?
If you are looking for faster growth in
2016, you might need to think differently about funding. What are
your options if your business doesn’t have enough money in the bank
to finance your plans?
Well, if you’ve grown your business from the ground up, you may
think of taking out a loan as you’ve done in the past, but will a
loan really give you the flexibility you now need?
Alternatively, if you can demonstrate a
capable and ambitious management team, you operate in a stable
market and are poised for growth then private equity may be a
viable funding solution to boost your business in 2016 and
An equity investor can work with you to
help focus your long-term goals and develop and implement a plan to
achieve them. They’ll also be able to help you to think
1.) Developing your
By working out what needs to be put in
place to achieve competitive advantage. They’ll be able to
help you recruit key staff, perhaps to boost your management team,
or introduce you to trusted experts in your industry.
2.) Shaping your board
You’ll be able to benefit from their
network of experienced professionals to strengthen your board and
ensure you benefit from the right guidance when it comes to making
decisions about important ‘growth issues’ like governance and
scaling up business models.
As you expand you’re likely to need
additional funding, perhaps as you enter new markets, ramp up
production or you need to employ more staff. A long-term
equity backer will be able to consider follow-on investment rounds
and also introduce you to its co-investor network depending on your
total funding requirements.
4.) Exit planning
What are your long-term personal financial
goals and how will you know when the time has come for you to sell
up? Your backer should help you clarify these goals and
ensure both you, your managers and staff all benefit from the hard
work you’ve all put into your business over the years.
Make 2016 your year for
So, if your business is to take the leap from
lifestyle to growth business in 2016, carefully considering your
funding options can set it on the road to even greater success.
Equity investment could not only provide you with the funding you
need, but also see you benefit from a wealth of valuable expertise
And for you, the person who set up the
business and has stuck with it through thick and thin, it could
also have a big impact on the rewards you reap for years of hard
Finance Wales offers equity investment to
Welsh SMEs at all growth stages. If you think your business could
benefit from an equity investment contact us
today and speak to one of our equity investment