How can I put together a financial statement for a new company in an effort to gain the support of investors?
I'm trying to find an investor to help fund costs associated with my newly established business (inventory, equipment, office space, etc) I've tried to find a local investor and had no success.
My company is newly registered and was just founded this year. I believe that investors are hesitant to partner with me because the company is fairly new. However, prior to owning my own business, I have had experience serving as the CEO for two other companies. How can I create a convincing yet accurate financial statement given my company's newly developed status? What is the best way to present my company's value proposition to investors?
Hi Edna! In order to secure funding for a start-up, you'll need to gather the financials for you and/or your principals (Vice President, CFO, etc.) if you have any... Further, if you have a Board of Directors, you'll need financial statements for your Executive Committee as well. Should you have neither, then you're asking inventors to buy (and trust) you personally, so there has to be some stake in the game, so either cash or assets.
Hope this helps and good luck!
Edna - Getting the support of investors early on is always difficult. In my experience, the financials of the company today is not why investors would be interested in your new company. Addressing the following questions is what we've found to be successful for startups looking to get investors interested.
1. Management Team - They are investing in you. What value do you provide to the business and why is backing you the right move?
2. Addressable Market - What market are you going after and how big is the opportunity?
3. Business Plan - How will you approach the market? What is unique? Do you have past or present relationships that will help you penetrate the market?
4. What will be the biggest challenge and how will you overcome it?