- April 30, 2020
- Posted by: Canberra Innovation Network
- Category: Event News, Weekly Innovation Challenge
Where is the money? It is a great question and one that many startups and small business owners are often pondering. Our guest experts gave us the inside scoop on how to work with investors along with some general tips to help cashflow, especially through this time.
Here are some words of wisdom from Anne-Marie Perret, Angel Investor and startup mentor; Damien Hollingsworth, Director at PwC; and Ken Kroeger, Director of Visionary Machines and Chairman of Epicorp.
Be wise with your expenditure: sometimes spending less is a source of money.
Raise money when you don’t need it: don’t wait until you are desperate, keep searching for opportunities so you stay afloat and keep growing.
Follow your network’s network: ask the people who you are talking to, who you should be talking to?
The 24-hour rule: if an investor is asking you for reasonable information, don’t delay your response. Be prompt and confident.
Not right now doesn’t mean no: opportunities will still arise. Keep going and growing.
Think creatively: there are many potential sources of money, do not get stuck on one approach.
Don’t forget the R&D tax offset: for genuine R&D this can be an important source of money.
Consider debt: there are loan products out there that may suit you but understand the risks and lender profiles.
It is also important to think about the different types of investors and whether they are the right fit for your business. Having a relationship built on trust, passion and an alignment to the same vision helps develop a solid foundation for a good founder-investor relationship.
Silent investor: They believe in what you are doing but they take a ‘hands off’ approach.
Active Investor: They will want to get in and help you get the job done.
Smart Money: Finding connections and different access to money, i.e. funds, banks etc.
There are also a lot of other grants and loans that offer financial assistance.
- Federal Government SME Guarantee Scheme
- Innovation Connect Grants (ICON)
- JobKeeper Assistance
- Angel Investor Network
Managing cashflow and finding money can be stressful, especially in uncertain times. Bouncing ideas, connecting with other entrepreneurs and finding a mentor will help you analyse and step through this process. Don’t be shy, reach out and talk to the community – you may be surprised about how many people are going through the same challenges.
Busting to find out what is next?
Well, you need to tune into next week to find out!
Weekly Innovation Challenge: Growth Metrics.
Learn from Matt Bullock, founder of eWay and Spinify, on how focusing on the right metrics will drive growth in your business.
For many more tips and details on this topic view the full webinar.