Are you investment ready? | NZBusiness Magazine [Video]

There are many steps or hurdles to overcome before your business may be attractive to an investor, and consequently achieve the required funding at a high sale value. All too often, small to medium sized businesses (SMEs) do not take the time to address key issues, which can result in the business never reaching its potential (or worse, self-destructing).Equity funding is usually sought once a business has maximised its debt funding (usually bank borrowings) on acceptable terms. With equity funding, an investor will own a portion of the shares in your business, and will typically expect to have a say in the direction and operation of your business.  ‘Venture capital’ is a term loosely-used to describe the raising of equity in your business. Venture capital is properly defined as being investors, investment companies or fund managers who pay cash in return for part ownership of the shares in your company.  What investors look for…