Crowd Sourced Funding Can Assist "Scaling Up"

Issue 027

Doesn’t it really‘frost your cookies’  that medium-sized business always seems to get left out of the most important decisions?

Well, as it turns out, the sector has finally scored a big win!

Many medium-sized companies will be perfect candidates for a concept that’s going to revolutionise capital raising for Australian business and it’s already underway.

This is not a gimmick!

The concept is called “Crowd Sourced Funding Equity Raising” and after being used by SMEs internationally for years, it’s finally been legalised here in Australia.

Medium-sized companies – turnover $2 million to $25 million are ideally placed to utilise Crowd Source Funding Equity Raising to raise capital.

“Scaling up” to the next level or even 2 or 3 higher levels requires:

  • People – identify core values. The company then needs to implement those values for the benefit of every person within the business.
  • A strategy – identify what you're planning to do – document this:
    • Will this strategy appeal to your present and future customers?
    • Will your business be able to differentiate itself from competitors?
  • Driving execution:
    • identify priorities
    • identify meeting schedules – daily, weekly, monthly
    • keep everyone in the loop
  • Managing cash:
    • don’t run out of it!
    • cashflow management is vital for companies “scaling up”
    • growth sucks cash – inventory, debtors, capital expenditure, training, research and development, protecting intellectual property, people, premises, all cost money.

Crowd Sourced Funding Equity Raising is now available for companies with:

  • group turnovers up to $25 million
  • group gross assets valued up to $25 million
  • not registered on a stock exchange anywhere in the world
  • not registered on a financial market outside of Australia

Implementing a capital raising as a Crowd Sourced Funding Company could prove to be an “apprenticeship” for a subsequent Initial Public Offer for a listing on a stock exchange.

The experience of participating in the Crowd Sourced Funding Capital Raising process, working with a Crowd Sourced Funding Intermediary, accepting that a group of shareholders own a percentage of your company, the experience of having some external directors on your Board of Directors, potentially dealing with auditors will be a valuable experience if your company ever decides to proceed with an IPO.

Develop and Maintain Your Skills Levels

Directors of companies interested in raising capital as Crowd Sourced Funding Companies are advised to undertake some research and study into Crowd Sourced Funding Company operations.  We recommend that you subscribe to Corporate Governance Network Webinar Number 3 which features a detailed overview of Crowd Sourced Funding Equity Raising.  As well as:

  • Payments of Casuals – Changes made by Fair Work Australia
  • Services supplied by the Australian Industry Group for small and medium sized business throughout Australia.
  • Corporate governance mattes:
    • Dealing with the Media
    • New Directors/Committee Members Due Diligence

You can purchase this webinar at ESS Small Business' website  ->  Corporate Governance Network - Webinar No 3.

We have developed resources to assist companies understand what is involved in raising capital as a Crowd Sourced Funding Company.  The material relates to:

  • SMEs Introduction to Crowd Sourced Funding – free articles to assist you to gain an appreciation of Crowd Sourced Funding.
  • Understanding the Crowd Sourced Funding Offer Document process.
  • Overview of the Crowd Sourced Funding Offer Document.
  • Preparing the Crowd Sourced Funding Offer Document
  • Introducing the Crowd Sourced Funding Intermediary.
  • Investors and Crowd Sourced Funding Equity Raising.
  • Post Crowd Sourced Funding Capital Raising.

You can access this material at the ESS Small Business website  ->  Crowd Sourced Funding.

If you have any questions, please do not hesitate to send me an email:

peter@essbiztools.com.au or

Telephone me on 1800 232 088

Have a great day!

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Episode 27 - Crowd Sourced Funding Can Assist "Scaling Up"

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Crowd Sourced Funding Can Assist "Scaling Up"

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