There are a number of advantages the services of capital raising consultants bring to a company. Whether starting up or entering the process of scaling up, the need for funding is paramount to the life of an organization, which is when capital raising consultants come into the discussion. With the consideration often comes hesitation, as most executives believe capital raising can and should be conducted in-house to save the cost of the consultants. Given the amount of time, research, preparation, and presentation materials offered by capital raising consultants, there is no competitive group that can perform to the high standards and quality of service provided.
Whether starting up or scaling up, here are 6 advantages of using capital raising consultants when the need for funding is imminent and critically important.
One word describes capital raising consultants who design and build successful campaigns for fund-raising on a regular basis: experience. The experience of the highest-performing capital raising consultants betters that of most executives in the C-suite due to the regularity of the services provided and the expertise that goes with them. These are seasoned professionals who have spent prior years in business, conducting operations and management, strategic growth and marketing, much like those who are now in start-up or growth modes.
2. Extensive Background Research.
Very few, if any, busy executives have time to comb through company records, searching for the first month’s revenue from ten years ago. Record-keeping has improved drastically with tech and software capabilities; however, the fact that many companies still have storage systems that require improvements suggests that the hunt for relevant financials or company records may take a significant amount of time. This is a distinctive advantage of using capital raising consultants, as they spend the time and energy conducting research, while the functionality of the company is not impeded, nor is anything demanded of the executives in the research and document-finding process.
3. Collate Tactical Information.
In order to present a cohesive and impression-making appeal for funds to investors, the information offered must be compelling. The advantage of using capital raising consultants is found in this by the manner in which data is collated and paperwork compiled. Information to be offered to investors is extensive, including unique aspects of the company offerings, the scaling-up potential, competitors and their respective offerings, special discounts or offers by the company, and other relevant tactical information that will convince investors of the value found in the company.
4. Funding and Financial Projections.
With the request for investor funding comes the need for complete and thorough financial records. The advantage of using capital raising consultants is crystal clear in this. In truth, most startups do not have adequate record-keeping, which necessitates a completely re-invented first-year statement. The scaling to come will present a significant request for financial information that will clarify the request for funds. Financial projections will also come into play, as the investors will want forecasts to be justified with current contracts or long-term relationships that solidify the numbers.
5. Pre-launch Planning.
The advantage of using capital raising consultants is found in the executive coaching offered at this juncture. Typically, investors ask hard questions during the presentation. A CEO or president needs coaching to answer the questions honestly, but appropriately, withholding information not needed by the public. During the pre-launch planning, consultants will work with several key executives in much the same fashion, assisting in helping them speak directly to issues and form coherent responses, as needed.
6. Post-launch Review.
Capital raising consultants do not typically attend the presentation to interested investors. They wait for the presentation to end before calculating the outcomes, but they will not take an active role in a presentation. The advantage of including capital raising consultants is found in the conclusive reports collated from the presentation and press reports that follow. Such information may lead to further rounds of funding. The information sifted from the presentation is then in the hands of the executives, who work with investors to collect funds.
There are many advantages to utilizing the services of capital raising consultants. At the end of the process, as funding for your startup or scaling up operation is completed, we’re confident you will find agreement in this assessment.