Question :
I have a great business advisor via NZ Business Mentors, and am following the next steps we planned together. But I will soon need more funds to grow the business, ive considered crowd funding but my ideal would be to find a business investor, who also wants to work with me in developing the business. Any advice as to the best way to approach this would be much appreciated. I’m getting my planting system recosted, and developing a leasing strategy before updating the business plan and cashflow forecasting. https://hellogarden.co.nz/

Question submitted 04/05/21 @ 11:47am
Industry: Business Growth
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      Kia Ora – thank you for sharing, I am thinking about this – sounds like you are doing good work with your mentor – that should help you articulate and actualise your aspirations and goals for the business. Coming out of this will come the ‘funding’ required to take your business to the next level.

      With the knowledge of ‘how much you need in $ terms’ – my first question for you would be, is there another way to get this $, could you just get sales instead and take longer to scale, why do you need investment? Unless you want the $ as well as guidance and partnership, which might be a valid strategy to go with? The best form of cash in my view normally is from customers and sales.

      If you are keen on the value add – then what we want to do is search our for an investor or investors who have had experience in what you are doing at HelloGarden – so you are getting more than just money. If it is like an amount less than $100,000 then often this could be an individual, and if it is like $250,000 then it maybe more like a group of people coming together either via an Angel Network or a group of friends. The Angel Networks can be found through industry associations like the Angel Association of NZ (have a list of members) – albeit they are typically looking for tech and global opportunities to invest in given the high return possibility and also the high risk – this business may not fit that profile.

      Just like you are passionate and connected to what you are doing, I am always in favour of identifying investors who share your passion for the market and for what you are doing – and hopefully they can have some skills to complement your two skill sets.

      What is super hard is finding these people – I figure you just have to get up and out and network, meet lots of people, share your vision and be open about wanting to raise capital if you find the right partners – and keep hunting, but in the meantime make sales that gives you cash to resource the business.

      A couple articles to reflect on as you go down this path:-

      Staring a business – some focus points: https://medium.com/better-marketing/the-first-8-things-you-must-conquer-in-a-startup-f89c58926088

      Raising capital – thoughts

      Raising capital – a guide for a pitch deck

      Very happy to answer any questions if you have things that come to your mind. Andy

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