#032 FAQ the Cost of Cash

In today’s episode, Ray and Nigel discuss how to raise money and the obstacles you may need to overcome to secure investments.  The hosts also delve into the many messages they’ve received and answer some of the most frequently asked questions by the How To Make Money community. KEY TAKEAWAYS The minimum and maximum figures an Angel will invest depends on the business, and three key factors; you, your deal and what the Angel’s position is. Larger investments don’t happen quickly. Even crowd-funding, which appears on the surface to be a rapid solution, can take months of preparation.  Ensuring compliance and promoting the project takes time. Tempting investors with all the information they need beforehand means that when it goes live, they are ready to jump in quickly. The cost of cash depends on the security of the investment among other factors, such as risk, projected returns and length of time. The Angels Den deals mainly in Sterling as their investors are predominantly UK based To secure investment, it helps to do a lot of groundwork and also work closely with the solicitors and banks that will be handling your business. It’s been known to cause problems when large amounts of money suddenly appear in accounts, so it is vital to build and maintain those relationships, so that the Know Your Client (KYC) model that they follow works in practice.  Keep them informed at every stage of your project. BEST MOMENTS  “If it’s your first deal, bank on it taking two or three times longer than you think it will, but previous success accelerates future deals” “When Crowd Funding goes live, there’s already been a lot of work done behind the scenes with promotion through Social Media and email campaigns, along with a lot of compliance.” “First timers will have to go through a lot of hoops to tick all the boxes for solicitors to take them on as clients.” “Keep your bank informed from conception of the idea, all the way through. Listen to Episode #020 where we covered High Street banks.” “Learn more about the CREST model [touched on in this episode] by listening to Episode #007.” VALUABLE RESOURCES https://www.angelsden.com/en-gb/events/ http://howtoraisemoney.co.uk/ For other podcast episodes mentioned: http://howtoraisemoney.co.uk/category/podcast/ ABOUT THE HOSTS Ray McLennan is a keynote public speaker and former corporate solicitor who has many years of experience owning and operating a variety of businesses in the UK and Ireland. Ray is the Regional Manager for Scotland & Ireland for Angels Den, which has over 13,500 high net worth Angel investors that help to find funding for property and SME businesses. Ray also helped to create Property Angels Den (PAD) in Sept 2014, which matches High Net Worth Investors with property proposals of all sizes. PAD now meets regularly and has funded dozens of property projects all over the UK. Nigel trained as an accountant but has for the last 11 years run the family care business. With a 7 figure turn-over and over 100 employees, the role has given Nigel quite a few valuable lessons! Nigel and his wife, have focused more and more on property over the last few years. The latest project is a 20 bed HMO with 12 SA rooms. But in the last few years Nigel is now helping property professionals understand that social media is a way to increase your customers, get more deals and earn more profit! CONTACT METHOD [email protected] [email protected] howtoraisemoney.co.uk nigeltbest.com