Business Planning and Business Financing Advice

How Axiom-e can help

As part of an integrated approach to strategic financial management, and as a consequence of our other work, Axiom-e can help to:

• arrange equity and loan finance
• structure deals for buying/selling businesses
• prepare proposals for major capital expenditure projects

Whilst appearing to be quite disparate, these three activities are related by the fact that they all require a clear plan of action to be prepared which sets out what expenditure (or investment) is required, what the expected benefits (or returns) are and how risky the proposal is perceived to be. These factors are often brought together in a formal Business Plan or Investment Proposal. Through our close relationships with funders and corporate finance advisors, we have a good understanding of what is required to help financiers make a positive decision to fund your business. This enables us to identify the most suitable sources of funds (eg bank, venture capitalist, business angel or other company) and to work with you to produce documents and presentations for discussion with potential backers. In the last few years, we have helped to secure funds from GBP20,000 asset-backed finance to GBP4m from venture capitalists.

The work will typically involve us in:

• questioning the assumptions and scenarios on which draft plans/proposals have been prepared
• preparing business plans and justifications
• developing financial models
• reviewing and critiquing your written commentaries and presentations so as to ensure they are focused in order to meet funders' needs
• identifying suitable potential investors
• co-ordinating meetings with potential investors
• negotiating deals on behalf of our clients with investors

The importance of an appropriate plan which clearly, but concisely, sets out all the relevant facts including the financials, cannot be overstated. The quality and internal consistency of plans is important. Jim Driscoll, a Business Angel, emphasises this when he says:

"The first thing I look for is how well the business plan is written...One of the biggest things that puts me off investing is when the business doesn't have a good financial set-up. They often focus on the idea rather than who is going to look after the finances. And a lot of the time the numbers don't stack up...Most young companies are keen to get things started and they don't think properly about their plans." Source: "How to raise cash for your start-up", Sunday Times 21st April 2002

Axiom-e's consultants are specialists in preparing financial models and plans. We can therefore support you in the process by undertaking the financial work leaving you to focus on the technological and product-related elements of your business.

The need to have a good plan and to fully understand it is stressed by Peter Wood the founder of Direct Line Insurance who also urges entrepreneurs to stick with their idea when he says:

"To raise the finance you need a fantastic business plan and you need to know the numbers back to front. First-timers looking for finance also require the ability to bounce back when doors are slammed in their face and to remain entirely confident in their vision."

Source: "Keep an unshakeable belief that your vision is right", The Times 18th May 2002

Whilst there can never be any guarantees that funders will back your business, Axiom-e can help ensure that your Business Plan presents your company and its strategy in the best light by working with you to ensure that:

• the plan is realistic
• the financial statements make sense and reflect correct accounting principles
• the commentary is clear and concise

Axiom-e's experience

Our staff's major achievements in this field include:

• successfully negotiating with banks for loans for start-ups often with a SFLG (Small Firm Loan Guarantee) from the DTI
• successfully negotiating asset finance for new and mature companies
• successfully negotiating with venture capitalists over funding for businesses
• preparing proposals for several GBPmulti-million investments covering capital expenditure and acquisitions
• successfully negotiating a medium-term loan facility of more than GBP5m
• negotiating with bankers over funding for a new factory in Germany
• project-managing (including raising investment proposals for) the selection and implementation of business systems with individual project costs of up to GBP1.5m

Testimonials

Do not just take our word for it:

• "Before we start to discuss your application, let me say this was the most useful, comprehensive plan that I have seen" Senior Business Banking Manager, NatWest
• "Your (Business) Plan is the best, most detailed plan I have seen...Real Premier League stuff!" Corporate Banking Manager, Barclays Bank
• "The benefits of working with Axiom-e are clear: the quality of the work undertaken was of a very high standard and the speed with which they were able to wrap up negotiations with the bank was impressive." Director of a client for whom Axiom-e had just secured a bank loan.
• "As your business plan (prepared by Axiom-e) was extremely comprehensive and clear, we do not require any more information from you and will send our loan term sheet to you shortly." Corporate Business Manager, AIB, following a meeting with a not-for-profit client for whom we had sought a GBP2.5m bank loan.