Attracting investment is a process that is necessary for business growth and development.
It may be driven by the need to finance a new project, expand an existing operation, invest in new technology or equipment, provide working capital needs, and more.
Whatever the reason, raising investment can be complicated and requires serious preparation.
If you own a project that needs additional funding, there are a number of important questions you should answer before you begin the process of raising investment. The answers to these questions can help you decide on the most appropriate funding sources, as well as provide investors with the right information to make an investment decision.
Where is the location and what is the project?
Begin with a description of the project and its location. Describe the main goals of the project and how it will be implemented.
What is already in place for the project?
What stage is the project at?
List all available assets and resources needed to implement the project, including land, buildings, equipment, materials, technology, licenses, etc.
Specify whether the project is in the planning, design, construction, or operation phase.
Indicate if the project has any on-balance sheet liabilities, such as debts, tax debts, bills of exchange, lawsuits, etc.
Why didn't the project owners solve the financing issue on their own?
Describe why you decided to apply for external financing rather than using your own funds or going to the bank for a loan.
What is the realistic timeframe for implementing the project?
Investors want to know how quickly the project can be realized and a profit made. Project owners should provide specific timelines based on realistic estimates.
Do they have the necessary permits, licenses, patents, etc.?
The project owners should tell about the necessary permits and licenses.
Estimated payback period of the outside investment.
What is proposed for the use of outside funds.
Write the conditions for the investor that you offer when entering the project?
What will be the profit of the project after financing and in what terms?
What own funds are invested in the development of the project?
Is there a budget to move the project to funding?
If unsuccessful, are you ready to return the money to the lender, and if so, how?
Is there a deputy project manager who can replace him/her in case of emergency?
What was the company's turnover over the past year?
What was the profit for the past year?
What are the main risks of the project? List the main risks affecting the project.
Name of the organization with TIN and full name of the CEO.
The legal and actual address of the company.
