Even when you are successful, you can never be successful enough. Very few firms generate the excess cash to grow without seeking some outside investment. Although Cisco was turning over $250,000 a month in their early years, they had to resort to venture capital to kick-start their business.
Now, armed with an excellent track record, you are in a strong position to approach potential investors. Your sales achievement diminishes the early doubts, and you yourself are more assured. Doors may open at speeds you would never have believed previously, but don't fall in too quickly. There is probably no need to take out a second mortgage on your home to underpin your overdraft. Your bank manager will be more than happy to extend your credit. Additionally, you may now have the option of a stock market flotation. Your have the following main options:
♦ Venture capital
♦ Flotation (or selling part of the shareholding)
When approaching venture capitalists or banks you will still need a business plan. You will probably find it a lot easier to write now on a foundation of facts, leaving less for aspiring conjecture. It may not need to be as detailed as before. Proposals should always include copies of your latest audited accounts.
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