Jackson asks: I have researched a business idea and got an outline plan for a totally new business with no competition at all and with a mass of potential. However, to go forward I need full financial backing up to £120,000. As I was bankrupted last year due to personal reasons what do you think my chances of finding a investor or partner would be – and where would I go to find one?
The plan would take six months to put into place and 90 per cent of the funds is for equipment, which if the business were to fail could be resold to recuperate money.
Robert Ashton replies: Let me be honest here. Few investors will support a business idea that has no competition – to them it will suggest there’s no demand. Secondly, they’ll expect you to make a significant personal financial commitment. If you’re bankrupt you can’t do that. Lastly, you say that the risk is minimised because the equipment would have a resale value if the business failed. Failure should not be an option.
My advice is to get someone in the marketplace already to hire you to develop the concept within their firm, with a bonus in place for you when you a) prove it works and b) are discharged from bankruptcy:
Robert Ashton is a popular business speaker and runs ‘Business Boot Camps’ for entrepreneurs seeking growth.
Steve Carroll replies:Finding a partner/investor should still be possible. Your business proposition will need, however, to be well-positioned and reflected in a robust business plan. This should cover the usual areas plus a comprehensive analysis of business risk and appropriate risk management strategies.
It should also incorporate an investor exit strategy, and realistic forecast trading accounts and balance sheets for one, three and five years into the future.
Steve Carroll is MD and Lead Consultant of his own company, CarrleyTM Business Consulting Ltd.Steve has worked in international, corporate and consumer banking, and spent ten years running business support initiatives in the public sector.
Disclaimer: The opinions expressed are those of the author(s) and are not held by PRIME unless specifically stated. The material is for general information only and does not constitute legal, accounting, tax or other personalised advice. You should not rely on this information to make (or refrain from making) any decisions. It is not a substitute for independent, professional advice for your own particular situation.
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