How to Use Finance to Drive your Dream Business – Sara Yates

Starting a business can be a challenging but rewarding endeavor, and securing the necessary funding is often one of the biggest hurdles entrepreneurs face. Whether you’re just starting out or looking to expand, having access to the right funding can make all the difference in helping you reach your goals and achieve success.

There are many different options available for raising finance, each with its own advantages and disadvantages. Some of the most common methods include bootstrapping, debt financing, equity financing, government grants, incubators and accelerators, and strategic partnerships. The best approach will depend on various factors such as the size and stage of your business, the industry you’re in, and your personal network and financial situation. Regardless of which approach you choose, the key is to have a clear understanding of your funding needs, a solid plan for how you will use the funds, and a clear strategy for how you will repay any debt or generate returns for investors.

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What will you learn from this episode?

Why is debt NOT a bad word?

Debt is not necessarily a bad word because it can provide businesses with the funds needed to finance growth and expansion. When used responsibly, debt can help a company increase its earning power and create value for shareholders.

The equity road map, what it means for you and what investors look for?

The equity roadmap refers to a plan for how a company plans to generate returns for its equity investors. This typically involves identifying the key milestones and revenue drivers for the company and establishing a timeline for achieving these goals. Investors look for companies that have a clear and achievable equity roadmap, as it indicates that the management team has a plan in place for delivering returns.

An alternative route – buy and build.

The “buy and build” strategy involves acquiring existing businesses and integrating them into a larger organization to create synergies and drive growth. This can be an alternative to traditional growth strategies such as organic growth or seeking investment through equity financing. By acquiring established businesses, a company can tap into their existing revenue streams and customer base, reducing the risk of starting from scratch.

Would you like to learn more from Sara Yates?

Sara is the Advisor/Ambassador for NCA Private Equity. NCA recruits future CEOs to find, buy, run and then private equity opportunities with an acquisition value of $10-$40m in Europe and the US, and raises the capital through a community of investors and funds. All opportunities target an 30% IRR at exit.