Money makes the world go ’round. At least that’s what we are told. Whether you are starting a new business or developing new commercial real estate, the most difficult task in embarking on a new business endeavor is raising an adequate amount of capital to fund your project until it can stand on its own feet. We have Consultants that raise Capital for an organization like yours. HafeziCapital helps with the key components of the financial structuring and business modeling that will qualify the project for funding.
Preparing to Raise Capital
While you might find the task of raising capital to be the most difficult part of initiating your new project, it may be disheartening to discover that the task of raising capital really never ends. Consultants that raise capital understand that the ability to raise the necessary amount of capital to start and continue funding a business is an essential tool required for entrepreneurial success. By developing the correct income projections and taking into account industry, environmental and business analysis, we help our Clients in understanding how much money they need to raise and for what period they need to raise it for. By looking at this process from a dualistic perspective we can ensure both product survivability and corporate health.
How much Capital do I need?
One of the most daunting tasks involved in a business startup is trying to account for how much capital will be required for initial and continued funding. Although many popular resources focus on raising capital for businesses that start with none, do not be persuaded by the tactics. According to Harvard Business Review, one of the main reasons that businesses fail pertains to their lack of adequate capital.
Maintaining a focus on a realistic goal is key. If you are having trouble trying to decide where to begin, let our team dedicate its time in researching the market, discovering tools and tips that have worked for others, and exhaust all of your data sets that will place you in the best position to succeed. Don’t be timid in your tactics, and plan as though you need enough money to cover your worst-case scenario.
Ways to Raise New Capital
Credit cards, home loans, and lines of equity are the most often sought-out forms of startup capital. Subsidized loans and grants from the government are often used, as well. Yet, when business owners discover that they need more than this to survive the panic kicks in. The private market is composed of friends and family, angel and venture capital sources of capital. However, to be able to raise capital in the latter two, you have to show that your business model is sound and tested, with Scale being the key driver for organizational growth.
Based on our analysis and review of the organization, our consultants that raise capital focus on seeking capital from alternative resources. Investment banks, private investors, joint venture projects and venture capital funds usually offer alternative options. These options generally revolve around debt, equity, or a combination of both.
The most commonly utilized way to fund a startup. Debt is generally secured by the assets of a company. A company that is attempting to raise debt financing must have a good enough income model to justify its leverage. Depending on the state of the economy and the willingness of banks to take risks, leverage ratios will vary. However, from a acquirers perspective ratios should be sound to ensure that the buyer does not default on the loans.
Investors can quickly become the owners of a business through equity utilization. Consultants that raise capital understand that equity proportions must benefit both the entrepreneur and the investor. HafeziCapital can help you navigate the valuation and equity offering structure, developing models that will befit your respective company needs.
Consultants that Raise Capital
HafeziCapital’s capital markets team is well equipped to advise clients on a variety of private capital needs, including Angel, Venture Capital (VC), bank packaging, government grant packaging, and government backed banking capital. HafeziCapital’s Capitalization packaging services represent a unique, specialized approach, and combine years of experience. HafeziCapital’s Capitalization consulting has provided companies with various ways of capitalizing their company given their specific needs. Given our experience, we have developed a deep understanding of the needs and investment preferences of investors.