Leaving it too late?

TheFortune8 · Apr 9, 2009

I have recently become an intermediary for a large network of Private Investors focused on providing "Turnaround Solutions". Businesses in trouble are perceived as being more investable than start-ups with no track record.

My role is to find those SMEs that are experiencing financial difficulties and are open to Equity Finance as a solution before lack of working capital starts to strangle the business.

The entrepreneur gets a successful "Business Angel" partner on board who brings knowledge, experience, access to new markets and opportunities as well as working capital in exchange for a minority share of the business.

Basically it's Dragon's Den for turnaround situations rather than start-ups.

I had thought that networking with accountants would bring in referrals, but apparently struggling businesses rarely seek the advice of their accountant (http://www.ukbusinessforums.co.uk/forums/showthread.php?t=105429).

What would be the best way to engage entrepreneurs in order to be able to present the case for Equity Finance as a solution to their problems during the downturn?

I'll be disussing this with colleagues and would like to come up with something other than the scatter-gun approach of direct telesales.

mke · Apr 9, 2009

1. Posts and blogs in business forums like this one.
2. Get in touch with the Regional Development Agencies, ask what they already have going and who you should talk with. Can you help them get something going?
3. Put up a web site and use web advertising sch as Adwords to directly target potentially interested parties. - shameless plug - we can help with this one, not with the others.
4. Shouldn't you be talking to insolvency practitioners and receivers rather than accountants?

Hope that helps. For any guidance on point 3 please get in touch.

TheFortune8 · Apr 9, 2009

Thanks mke ...

1. Tick
2. I've had a meeting with Business Link. The advisor I spoke to seemed to perceive a conflict of interest, after all they provide advice and have access to a variety of business support loans/grants, however, there are many hurdles to jump to get these and many business owners hate getting bogged down in bureacracy - they'd be better off getting in touch with a Private Investor sooner. My colleague has a personal contact with a more senior advisor and will see if we can get on their referrals list. Our sister company for start-ups already has an association with Yorkshire Forward.
3. Interesting - do you have any reference sites mke? My personal website developed at low cost is http://www.Fortune8Finance.co.uk more work to be done here for sure. (The investors' website is accessible after initial consultation).
4. Insolvency Practioners will be looking to wind companies up to earn their fees rather than rescue and turnaround. We try to catch companies before they end up at the IP.

mke · Apr 9, 2009

Number 2 - forget Business Link for your purposes. Yorkshire Forward's other funded agencies such as ConnectYorkshire are the places to be. Ask for Greg and tell him I sent you. They're doing a series of seminars and presentations soon. Get yourself booked in.

Where in Yorkshire are you? PM me with a number and perhaps we could have a chat. I may have some useful contacts for you, not entirely sure at this point.

Number 4. You are sadly misjudging what an insolvency practice is all about. Similarly with receivers. They want to help. They often have to act too quickly. Their contacts have to be in place before the fact. But that is when they really earn their fees, and what they get most satisfaction from.

Ah, Sheffield. Just saw the site. Yeuk. We can talk about that, too.

TheFortune8 · Apr 9, 2009

mke said:
Number 2 - forget Business Link for your purposes. Yorkshire Forward's other funded agencies such as ConnectYorkshire are the places to be. Ask for Greg and tell him I sent you. They're doing a series of seminars and presentations soon. Get yourself booked in.

I've already registered on their ebsite and have looked at The Investor Readiness program - I may be able to pick out 1 or 2 relevant events. What's Greg's position - and will Greg know mke???

mke said:
Where in Yorkshire are you? PM me with a number and perhaps we could have a chat. I may have some useful contacts for you, not entirely sure at this point.

PM to follow

mke said:
Number 4. You are sadly misjudging what an insolvency practice is all about. Similarly with receivers. They want to help. They often have to act too quickly. Their contacts have to be in place before the fact. But that is when they really earn their fees, and what they get most satisfaction from.

OK, maybe this could be an avenue, however my accountant friend is sure that IPs are "one club golfers" and that they may pay lip service to rescue but in practice, rarely do so. However, I will follow this up and see what kind of response I get.

mke said:
Ah, Sheffield. Just saw the site. Yeuk. We can talk about that, too.

Hmmm ... the colour scheme is experimental rather than conventional. I was trying to be "3D" as recommended to me - dramatically and demonstrably different! Do you have any sample sites to view?

Thanks for your comments mke

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