Getting Back To Basics

The real value is in getting back to the basics

In a complex environment, Greg Hardiman offers some sage advice on going back to the basics today to prepare yourself today for financial investment in your business, to help you continue to thrive tomorrow.

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Navigating disruption is challenging

It’s not easy to raise capital or source debt under normal circumstances notwithstanding changes to macro-economic conditions and the enormous disruption of COVID 19.  You would be forgiven for feeling swamped with information overload including the myriad of changes relating to business. From tax relief, employer wage subsidies, Small Business Insolvency Reforms and responsible lending law changes, none of this is likely to matter unless you get the basics right.

Fundamentally sound businesses and innovative start-ups need to be armed with realistic plans in order to scale up and thrive.  You may not have complete control or real-time visibility over every aspect of your business…who does have total control of demand drivers for their business! For businesses looking to scale up and thrive, it’s critical that you are armed with realistic plans and the basics when looking to source capital or debt.

Basic planning is the cornerstone for success

Many businesses still have inherent uncertainty surrounding liquidity and cash run rates, but you still need to plan for realistic scenarios.  Sourcing debt or trying to raise capital with up to date financials, a business plan, cash flow scenarios (with realistic and sound assumptions) is worth its weight in gold.  Navigating the finance path can be challenging, however business owners and entrepreneurs who thrive are the ones that see opportunities and the best way to ensure lenders and investors say ‘yes’ – by being prepared.

With traditional lenders testing future income on historical earnings, borrowers are turning to lenders who understand both the asset class and future cash flows.  Asset based lenders, private debt firms and private equity are looking to deploy debt and capital with sound investments that make sense.

Getting a winning game plan for your lending conversation

Businesses that get the basics right make it easier for lenders to make sense of all the information in a timely manner; having a sound business plan and financial models supporting the projected revenues and earnings makes sense.  Getting the basics right allows the impossible to become possible.  No matter how ambitious, getting the basics right goes a long way towards convincing the lender or investor.  The truth is that all lenders and investors want information that is concise and sense as to why they should lend money or invest in your business.  The deals that are getting done have a game plan for their business with the basic information prepared.

Time spent on the basics today will provide every opportunity to scale and secure debt or capital that your business needs for tomorrow.

If you are considering alternatives, a more flexible facility or accessing more finance, speak to the team who make conversations easy.

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Greg Hardiman
Senior Executive – Advisory & Finance
ghardiman@hilcoglobal.com
+61 411 844 742

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