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How Outsourcing Company Secretary Service in Sydney can benefit your Business?

The idea of outsourcing company secretary service is gaining huge popularity across the globe. Companies of all types, including start-ups, small and mid-sized companies, large organisations, and private and listed companies, are opting for it for diverse reasons.

One of the main reasons is that the companies are able to gain access to the most relevant expertise when required. Regardless of the size of a company, entrepreneurs are sometimes unable to hire a full-time professional to manage secretarial tasks due to the lack of financial resources. As a director, it’s important for you to ensure that your business and paperwork is compliant. Appointing a seasoned and expert professional to handle these administrative tasks helps you get complete peace of mind. You can focus on your core job while being rest assured that all the administrative matters are taken care of by someone professional.

Outsourcing company secretary service helps minimise the cost efficiency. Unlike bringing a regular company secretary on board, outsourcing prevents you from paying human resources cost and other expenses like sickness pay, holiday pay, as well as other employee costs. The outsourcing company takes care of all these costs and allows you to benefit from expert advice without incurring additional employee costs.

Your decision to outsource company secretary service comes with a flexibility to select a professional company with specialist expertise. You can rely on professional expertise for complex tasks, including preparation of statutory financial returns, preparation of company documents or resolutions, maintenance of statutory tax records, filing of paperwork, and seek advice on company law. For any business, it’s important to carry out these tasks carefully, and on time. Hiring an outsourcing company means your tasks are performed timely, without any additional expense of staff training.

Opting for part time company secretary services is always favorable, given that:

The company can benefit from the knowledge, experience, and expertise of professionals with a high level of understanding and training in company secretary service.

The company saves in office space and equipment, including fax machines, computers, copiers as the outsourcing company takes care of all this.

The amount of money saved by a company can be used to enhance the business development and infrastructure.

The company saves the cost of training as screening the qualified employees is the responsibility of the outsourcing company.

The company can rest assured of timely performance of secretarial functions and ensure that the same is submitted to appropriate authorities carefully.

The company can also acquire other services tailored to its needs by the outsourcing company.

One of the major benefits of outsourcing the company secretary service is that it offers an opportunity and time to concentrate on what’s more important and what needs greater attention in your business. This ultimately helps your company to move on the path of progress and expansion.

On the contrary to what is usually thought by the companies, outsourcing company secretary services can actually put your company on a better progressive track. A large number of companies are committed to delivering company secretary services solely, which in turn helps them perform their duties efficiently and on time.

The responsibilities undertaken by a company secretary are extremely important for any company. From record keeping to performing the role of an executive assistant and communication officer, a company secretary has to perform diverse secretarial functions. Remember that only an experienced and skilled company secretary is capable of performing all his duties effectively. Thus, if you are considering availing company secretary services Sydney, or anywhere across the globe, make sure to rely on experienced professionals who can understand your business requirements and deliver the right services to meet your needs.

Dec 19 2016

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What makes you a Good Company Secretary in Sydney?

The company secretary is a strategic position which deals with handling governance operations within an organisation. Governance describes how an organisation is directed and controlled. This calls for a company’s strategy and decision making, determining how aims are accomplished, and ensuring that activities undertaken adhere to legal, ethical, and regulatory needs.

Possessing a large skill set, including corporate law, governance, finance, strategy, and corporate secretarial practice, a company secretary advises a company’s board on these matters and provides support to the CEO, Chairman as well as non-executive directors.

Considering that the duties performed by a company secretary are complex in nature and wide in scope, a company secretary should have the following qualities and qualification to act efficiently.

Educational qualification

A company secretary has to work with many people of name and fame. He is thus required to have higher education for clear and in-depth understanding. He should have the latest general knowledge necessary to perform business operations efficiently. Moreover, since company secretaries represent an organisation to the outside world, they must have proficiency in language to be well conversant.

Professional qualification

As a company secretary has to deal with agenda, notice, resolution, and minutes of a meeting, he must have specialised knowledge on secretarial practice. He must be well versed with office correspondence with communication. He should maintain good relation with all stakeholders and have sufficient knowledge about human relations. In addition, it is important for a professional delivering company secretary services Sydney or anywhere across the world to have adequate and latest information about Companies Act, Income Tax Law, Industrial and Commercial Law, Accounting Principles, Stamp Act, and rules of Securities and Exchange Commission (SEC) to handle legal and statutory affairs efficiently. Better understanding about the capital market, foreign exchange, and socio-economic condition is also necessary to get a handle on trading and financing. Apart from this, a company secretary must have adequate knowledge to work with computer for documentation and to use data or information in future.

Personal qualities

A company secretary represents a company and performs several complex tasks, therefore he should have the following qualities:

>> Loyalty and courtesy
>> Punctuality
>> Honesty and integrity
>> Disciplined and professional approach toward work
>> Tactfulness

Responsibilities undertaken by a company secretary

The responsibilities of a company secretary are influenced by certain factors, including the level of job role, the size of the company and sector in which it serves. However, responsibilities include:

>> To guide the Board and the Chairman on their responsibilities and how responsibilities should be discharged.
>> To help the Chairman in ensuring that the board functions are carried out effectively and efficiently.
>> Ensuring that the information flowing within the board as well as its committees, and between senior management as well as non-executive directors is good.
>> Building and maintaining good relations with shareholders and sharing shareholders’ views with the board of directors.
>> Working out and managing the systems that help ensure that the organisation adheres to all applicable codes, along with its legal and statutory needs.
>> Analysing changes in relevant legislation and taking relevant actions.
>>Monitor day-to-day administration of the organisation, such as maintaining registers of members, directors and secretaries, statutory books, organising board meetings, and preparing meeting agendas.

The role of a company secretary has grown into much more than simply the basic statutory needs. The responsibility to develop and implement processes for promoting and sustaining good corporate governance lies on the shoulders of company secretaries. With the changing dynamics of the boardroom, directors and chairmen are realising the need for technical knowledge and specialist skills in this area and they are relying on company secretaries for this expertise.

However, if you are looking for company secretary services Australia, make sure to bring the right professional on board – someone who is experienced, reliable, and has all knowledge needed to carry out the tasks of a company secretary efficiently and effectively.

Nov 30 2016

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Why do you need a company secretary for your business?

Hearing the word “secretary” you might think of an individual managing appointments or answering calls. However, the role of a company secretary is different. A company secretary is an officer who performs different legal duties with the company directors, and handles other special tasks assigned to him.

Although not compulsory, a large number of companies appoint a company secretary to rest assured that there is someone professional to play crucial administrative role.

Gaining more insight into a company secretary

A company secretary is appointed as the head of the administrative division of an organisation who has certain duties and responsibilities like other directors of the company. He is responsible for filing annual return along with other documents to ASIC. In addition, he has to arrange board meetings as well as other internal administrative matters.

Considering the fact that a company secretary has to play a crucial role of managing administrative affairs, it is needless to say that the individual you hire as your professional should be experienced, reliable, motivated, organised, and has in-depth understanding of the working of your organisation and its legal matters.

A company secretary is usually appointed when a company is registered as a limited company with ASIC. Hire someone who comprehends his duties as a company secretary.

It is vital to remember that there are a few people who are barred from delivering company secretary services. These include auditors of the company and un-discharged bankrupts unless they are allowed to serve as a secretary by a court.

Given the number of duties to be performed by company secretaries, their role might seem to be challenging. However, they can outsource or delegate tasks, but have to retain complete responsibility for tasks performed, check over, and sign work that has been assigned.

What role does a company secretary play?

The core responsibility of a company secretary is filing annual returns as well as other company documents. The annual return filed is a snapshot of company’s information which has to be accurate and up-to-date. It is the responsibility of a company secretary to get these forms to ASIC within 28 days of the made-up date.

A company secretary usually undertakes responsibility of the director’s report as well. The report incorporates the details of the company including the names of the secretary or the directors who have approved the accounts. Director’s report must be filed once annually, along with financial statements, which include details of assets and liabilities of companies, such as debts.

Apart from the ASIC reporting needs, a company secretary performs the following duties:

Maintaining the registered office of the company

Registered office is not necessarily from where a company operates, but a company secretary needs to ensure that all the correspondence sent to that address is received. He needs to ascertain that the registered name of the company is shown outside the registered office.

Maintaining statutory records of company

Statutory records include minutes of meetings with board of directors, a register of shareholders, a register of directors, a register incorporating details of debenture holders, and any charges applying to the assets of the company.

Taking care of essential legal documents

Legal documents are important for any company and it is the duty of a company secretary to look after these documents, which include the Memorandum and Articles of Association, Certificate of Incorporation, stock transfer and share certificates, the company’s seal, service contracts of director, and any certificates related to the change of name.

Reporting changes to ASIC

It is the responsibility of a company secretary to notify ASIC when certain changes are made to the company, such as allotment of new shares or change to the make-up of board of directors.

A company secretary takes on a number of duties. Hiring one for your company can be beneficial. However, if you are a small company that cannot afford to appoint a full-time professional, consider bringing a part time company secretary on board. He performs the same duties of a full-time secretary, but for relatively small fee and can offer all the business benefits of appointing a Professional Company Secretary in Sydney, Australia.

Oct 12 2016

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Understanding the Benefits of Hiring a Virtual Chief Financial Officer in Australia.

Being able to control finances is extremely important for a business. Unfortunately, it’s not as easy as it sounds. A large number of businesses lack visibility or control over their finances. For many financial teams, accountants, or bookkeepers, keeping an eye on finances is a tough job. Although a common situation, this can be avoided by bringing a Virtual Chief Financial on board.

What is meant by Virtual CFO in Sydney?

A Virtual CFO is a financial leader who provides oversight of an accounting team to provide in-depth financial insight that helps entrepreneurs make more informed business decisions. Unlike an internal CFO who works for a single business, Virtual CFO works for many. Those having significant experience are capable of handling any and every tasks that are handled by an internal CFO or finance team.

Assistance of a Virtual CFO can help reduce stress, regain control, and optimise your business. Other significant benefits of hiring a Virtual CFO include the following.

Complete outsourced financial service:

Role of Virtual Chief Financial Officer in Sydney

A Virtual Chief Financial Officer operates as a comprehensive outsourced financial function. Instead of using the services of an in-house financial team and paying for them, you can count on virtual officers for your financial needs.

Some of the job responsibilities undertaken by a Virtual CFO include:
Cash flow management
Performance management reporting
Business intelligence
Strategic advice
Bookkeeping and accounting
Owing to an outsourced service, many Virtual Chief Financial Officers offer customised solutions to meet client’s needs.

Receive services of a CFO for fraction of the price

One of the biggest benefits of hiring a Virtual CFO is that you can acquire all services offered by an internal CFO or financial team, but at lower cost. While CFOs charge high salaries, a VCFO serves business owners for a relatively lower cost. With a monthly retainer, you achieve a higher level of cost-effectiveness, eventually providing greater Return on Investment.

Saying that Virtual CFO is less expensive than an internal CFO does not mean that you will have to sacrifice on wisdom. Holding years of experience in business and finance, a seasoned VCFO knows how to help your business accomplish its desired goals.

Gain in-depth insight into your business

Distractions are common in business and it’s easy to lose focus. However, hiring an able Virtual CFO Sydney can help you get fresh insight into your business.

Professional VCFOs usually deliver unbiased services and utilise their experience as well as expertise to analyse, strategise, and drive your business toward success. Specialised accounting and bookkeeping services offered by them help comprehend financial facts required to plan for the future.

Gain control over your business

Assistance of a skilled VCFO helps reduce your day-to-day stress. With virtual officers handling the financial workings of your business, you gain piece of mind and complete control over your business. You can be rest assured that your finances are taken care of by the professionals.

With complete visibility over your business’s finances, you are capable of making more informed business decisions.

Moreover, outsourcing these services enables you to relax since time-consuming bookkeeping and accounting tasks are handled by professionals on your behalf. This leaves you with adequate time which can be spent on other important tasks that matter the most to you.

Why should you hire a Virtual Chief Financial Officer

An outsourced VCFO is different from an internal CFO or accounting team. While paying a CFO can take a large chunk out of your pocket, a VCFO performs all tasks of a full-time Chief Financial Officer for a smaller price.

the hard choices for you on your behalf, Virtual Chief Financial Officers leave you with ample time to focus on your core job. Their expert advice and strategic planning help improve the bottom line of your business.

Sep 19 2016

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All you need to know about Resident Directors in Sydney

When setting up a new business overseas, Government regulations require limited liability companies to hire a resident director who may either be a citizen or a foreign national holding a valid residency permit. While the proprietary companies are required to have at least one director who must be a resident of the country where a new business has to be established, public companies must have at least three directors of which two must necessarily be the residents of the same country.

Appointing a resident director offers multitude of benefits and allows the directors to focus on what matters the most as the former takes care of diverse business operations, including the following and more:

Handling the financial aspects of business.
Reviewing company’s structure.
Confirming whether a company fully adheres to rules and regulations of governmental instrumentality that it operates under.
If and when required, understanding why a director has been replaced or has resigned. It includes analysing the reasons for resignation or replacement in detail.

Why is a resident director still needed?

In today’s communication era, the need for hiring a resident director is more than merely having a point of contact. When a company has at least one person, who holds a position of responsibility in a country, the government has greater recourse in case a company or its management do something wrong. This is why it’s important that the resident directors you appoint are seasoned professionals with clear understanding of local company law. At the same time, companies hiring resident directors must provide them with adequate information to perform their roles as needed by local laws.

Benefits of hiring a resident director

In addition to the responsibilities mentioned above, there are other roles performed by a resident director, allowing the businesses to enjoy the benefits of availing resident directors services.

Cost effective solution

When businesses start a new venture overseas, or in other case, plan to expand, it becomes extremely essential for them to minimise their expenses while establishing their brand and increasing their client base. This is when appointing a resident director fills the bill. Being a knowledgeable professional, an experienced resident director can help you keep your expenses low, and at the same time ascertain that you retain effective managerial control over your business.

Adhere to local laws

Needless to say, it is important for every company to comply with local laws while in operation. Given that professional a resident director is well versed with legal aspects related to a business, he or she can help ensure that your company adheres to local government laws that it is operating under. Moreover, hiring a resident director will keep you compliant with residency requirement at all times.

Maintain your privacy

Quite often, small and large clients do not want their names to appear on a company’s corporate register, particularly when these registers are to be viewed via a basic company search. The services offered by nominee directors can help safeguard your reputation, current employment, other business interests, and family and associates.

Who should you appoint as your resident director?

It is worth understanding that not everyone can be a resident director. You need to hire someone who is experienced and can help you avoid problems. He or she should be able to alert you to legal requirements that your business must adhere to. If the director you hire cannot help you with the same, you might have to seek external legal advice, which can cost your business an arm and a leg. Moreover, by the time you find the right external help, you might have already run into problems, which can be costly too.

A good resident director holds both business and legal experience. He or she understands your current company structure and future business needs as well as plans. Complete understanding of this allows him or her to deliver the right services that will aid in business growth and at the same time help your company to comply with local laws.

Aug 29 2016

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Answering a few questions related to a Resident Director / Nominee Directors in Sydney.

Here we answer a few common questions related to a Nominee Director.

Being an overseas company, why would I need a nominee director to establish business in Australia?

Nominee Director services are necessary for the overseas companies setting up operations in Australia since:

Under the Corporations Act (2001), there are strict rules about the residency of directors:

>> Australian Proprietary Company (Pty Ltd) must have at least one director who is a resident of Australia.
>> Public companies (Ltd) must have at least three directors, two of which must reside in Australia, as well as a resident company secretary.

There are various legislative and operational aspects which require the expertise of the professionals to act as Nominee/Resident Director and add their expertise to the board.

What is the purpose of hiring a nominee director?

A nominee director looks after the best interests of an organisation. This puts the director in Fiduciary relationship with the organisation, which means that he or she has to avoid anything that can result in conflict between company’s interests and his or her own interests.

What are the responsibilities of a nominee director?

If an organisation is operating as a holding company or passive investment company, then the responsibilities of nominee directors are straightforward. On the contrary, if the company has an active trading business, the level of responsibilities will be relatively higher.

A nominee director will need processes and procedures to be in place to ascertain that the organisation remains solvent and adheres to local laws.

A nominee director will:

>> Monitor company’s solvency by reviewing periodic reports from accountant to make sure that the company is able to meet the debts when they are due.
>> Review business contracts and ensure that the company is able to adhere to the rules mentioned in the contract.
>> Oversee local banking arrangements.
>> Hire other advisors to ensure that the company can comply with local laws.
>> Ensure that the company adheres to local tax obligations.
>> Report to the non-resident owners about company’s affairs.

Does a nominee director have a Fiduciary duty to the nominating shareholder?

Just because a shareholder appointed a nominee director does not mean that the director has a duty to the shareholder. This does not mean that the shareholder’s interests will always be different from that of the company; in fact, most of the time they will dovetail nicely. But in case of different opinions, it is the duty of a nominee director to put the company’s interests first. Additionally, the nominee director cannot share confidential information with the shareholder that hired him or her.

Will the nominee director have to perform different duties if he or she is appointed by the nominating shareholder?

The simple answer is No. Be it resident directors or nominee directors, the best interests of the company matter the most. A shareholder who appoints a director and believes that he or she will act as their agent will be discontented.

Does a nominee director hold company shares?

The fact that a nominee director is almost always a non-executive director, he or she does not hold shares in the company.

Nominee directors are an important asset of your organisation, thus you should carefully choose who you want as your nominee director. The professional you appoint should know what is needed of him or her so that the company can comply with local laws and obligations. The director will also be authorised to handle company’s affairs. You need to ensure that you hire a person who can act properly in the interests of your company.

It is the duty of a nominee director to be a good professional – one who understands his or her duties toward a company. It is not to the owners or the shareholders, including the one who appointed him or her, the nominee director must work for the overall betterment of the company.

Jul 27 2016

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5 ways the right Chief Financial Officer transforms your business

If you intend to grow your business, it is important to hire the right Chief Financial Officer (CFO) for your organisation. The primary requisite to find the right match is to know your needs. Every company requires a skilled professional, but what does a skilled professional mean to you?

The key to hire the right CFO is to define what a CFO must accomplish and to ensure that he fits in your company’s culture. Companies that experience rapid growth don’t have room for errors. They experience change from internal functions, such as production, marketing and sales, and from external forces like competitors. An organisation can choose a professional who fits its vision. The CEO of the company can define the type of Chief Financial Officer his company needs.

Here are 5 ways the right CFO transforms and grows your company:

Brings passion to the job

The right CFO is someone who believes in what you do, and understands your products, services and customers.

A passionate CFO lends credibility to your organisation. The business and financial face of the company, he serves as a bridge between the company’s CEO and employees, as well as the outside world, including bankers, investors, vendors and customers. He knows your competitors and helps the CEO to look for new ways to represent the products and services.

A good CFO offers trustworthy and passionate support that you need to acquire financing, engage professional service firms and build your brand.

Offers a strategic advantage

The right CFO not just simply executes current business strategy, but he suggests how an organisation can become more efficient and competitive. An officer who only cares about tactical matters and spends his time ensuring that the daily operations are carried out as per the strategy, fails to provide you the support you actually need.

A seasoned and skilled CFO understands business drivers, suggests alternatives, and helps in setting quantifiable goals. He stays well-informed about your competitors, products and customers. He is more focused on planning ahead and facilitating growth.

Thinks cross-functionally

If your Chief Financial Officer evaluates results from a purely financial perspective, he is missing on something. Although financial aspect must be taken into account, he must work well with other departments to accomplish success as a team.

A good CFO is a cross-functional leader. He works with different departments and focuses on finding out solutions for problems, rather than being a “no way” person. He will determine how his decisions affect sales, marketing, and manufacturing. He focuses on right decision making for the company as a whole.

Navigates between strategy and details

A good CFO is careful and savvy when it comes to processes, contracts and efficiency. With excellent cost-benefit judgment, he knows when accounting and business control is important to prevent fraud. He knows when the cost does not justify the benefit. A large number of rapid growing companies realise the importance of a Chief Financial Officer who can be strategic and jump into the details when required, and knows when to navigate between the two. Those who cannot afford to hire a full time CFO opt for virtual CFO services.

Adds credibility through communication

A good CFO is interested to find out why the figures are the way they are. He comes up with innovative ideas for how your organisation will compete and thrive in the future.

Besides, he is a good communicator. He knows how to represent your company, products and services to your customers and others. He explains how your company’s strategy converts into actions.

Finding the right CFO

Once you have decided that you need a new Chief Financial Officer Australia or in any other part of the globe, it’s time to consider your needs and find the right professional. Make sure he has the knowledge, experience and skills to be the right officer for your company and can effectively utilise his experience and expertise to create new strategies that can help your business grow and flourish.

Jun 17 2016

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How can Part-Time CFO services in Sydney benefit your business?

A Chief Financial Officer (CFO) is an individual on your executive team whose chief responsibility includes increasing cash flow, business profits and improving the bottom line. A part time CFO undertakes same jobs as a CFO, but works for less number of hours for a company. Lot many companies who need a skilled Chief Financial Officer do not have the funding to actually appoint one. Experienced professionals charge large amount of fees that many small-scale businesses cannot pay. In such cases, companies can hire a part time CFO to guide them in the right direction.
A part time Chief Financial Officer is responsible for looking after all the financial and accounting practices of the company. This includes preparing the budgets, preparing precise financial statements on time or even playing the role of a business advisor for the CEO. He has to develop tools and systems to provide the CEO with crucial information related to finance and advise him on company’s operations as well as strategies. A part time CFO inspects budget planning and based on that he suggests strategic plans for effective management of company’s costs. A CFO has to look at the business functions to make authoritative, well-informed decisions.
A few other responsibilities of a part time CFO include managing the cash flow of an organisation and making predictions in terms of where the profits will go and where they are required to go. He is also responsible to build and maintain healthy relations with the banks a company works with. In addition, he also takes charge of mentoring company’s staff to ensure that the procedure set up by the professionals is properly carried out.
Following are a few jobs performed by part time CFO to keep your company’s financials in order:

A large number of companies that cannot afford to pay hefty amount of fees to full-time CFOs are hiring Part time CFOs so as to solve their money woes. This decision can improve a company’s financial standing and lead them to a more profitable path. The cost that an organisation has to pay for a part time Chief Financial Officer will be lower than appointing a full-time CFO, while the services will be the same.
However, it is important to understand that the person you choose as your part time CFO Sydney or anywhere around the globe will be responsible for handling all the financial matters of your company and you need to hire someone who is skilled, experienced as well as accountable. Appoint someone who can guide you on financial matters, and analyse current as well as plan future strategies to let your business grow and flourish.

Proactive CFOs are regarded as the Most Reliable Business Advisors in Sydney

Jun 1 2016

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How can a CFO help you prepare for mergers and acquisitions

The M&A process deals with marketing the company to its prospective buyers based on its value. This is why it is important to prepare for M&A in advance to achieve positive results.

A large number of SME owners are likely to exit the business anytime in future after they realise that the expected value of their organisation is related to the process of preparing for that instance. The M&A process is all about marketing a company to its potential buyers. This incorporates both financial benefits and those related to that specific sector.

Although some entrepreneurs plan business strategies in advance, some potential buyers can approach a company anytime and if the owners are prepared, it can have an adverse effect on the price of the business.

Start early

Be prepared in advance. Get the due diligence done and make sure that your business is prepared to go through the transaction. If not, your company would have to assemble and prepare a large amount of data in less time. If the elements of the data are mismatched, this will weaken the confidence of buyers and have an impact on the price.

Help of a professional Chief Financial Officer who holds experience in M&A transactions can be beneficial for a business to achieve optimum price. Such professionals act as point of contact for the buyers and answer all of their potential questions, managing everything diligently. Besides, they handle contract negotiations and closure processes.

Price drivers – a forecast

Business forecast is the key element driving its price. The forecast information should include the advantages of synergy: sales synergies facilitating cross-sales so that the new buyers can sell their products to existing customers of the company and vice versa. Product development synergies are also crucial since when two technologies fuse with each other, they can create products with great market potential.

A CFO, who is commercially aware of the process, can identify maximum possible synergies and explain how the buyers can benefit from them. He can also create a credible forecast for individuals in diverse areas of the buyer’s business. A Chief Financial Officer experienced in mergers and acquisitions can also advise the company on what support they actually need prior to entering the M&A process.

Business as usual

It is essential to continue with business as usual at the time of M&A transaction. If the company is not able to meet sales target during that period, it is seen as a risk by the buyers. Given that forecast drives the value of the company, failure to meet the targets will have an adverse effect on valuation.

At Proactive CFOS, we have built a network which includes both offshore and onshore parties to help you find target companies for business mergers Sydney. We assist you with negotiation process and funding the transaction.

May 25 2016

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Planning for capital raising: Develop an effective strategy

As a business owner, it can be quite overwhelming to assess your options for capital raising. You need to rethink your game plan, develop strategies and have a right structure that could help you identify your prospective investors and provide them with what they might be seeking in a potential investment-worthy venture.

Following are a few steps that can help you build an effective strategy to raise capital.

Embrace the power of internet

It is no secret that the power of social media and internet is transforming the world, and also how the deals are found and accessed. However, a large number of businesses have still not experienced the power of internet to develop their capital raising strategy. Many businesses still adopt an old strategy, which includes listing a line about their business.

For businesses to find potential investors, it is important to be active on social media. This medium can be used to find potential venture capital investors and angel investors.

But remember, you need to be proactive and build an effective strategy to find investors and connect with them. This is easy said than done. This is when professional assistance can help. Experts, well versed with capital raising process, can effectively guide you and help you maximise the benefits that you can get from social media and internet when it comes to capital raising.

Don’t forget to start your investor relations program

It is important that you have an Investor Marketing or Investor Relations program from day 1, although you may have 2 or 3 investors.

Staying regularly in touch with your investors and key stakeholders can help you create a good marketing campaign throughout the process. These marketing materials can help you in your endeavour to raise capital.

Start briefing on a monthly basis and the communication material can be effectively used for your PR campaign.

Link your company news through media channels

Broadcast your company announcements as much and as wide as possible. Consistent announcement of your company news and achievements can help you reach much wider audience. There are some companies that develop effective campaigns by subscribing journalists, customers as well as other stakeholders through newsletters.

Go for crowd funding

Crowd funding is not new, but its integration with social media has made it an efficient tool to find investment capital. It can work wonders if you are active in industry specific forums or your localities or your target market.

For example, if you are into the business of developing dental equipments, a right approach can help you raise capital from doctors and dentists through crowd-funding website, given that they understand the niche of the product.
Go global Businesses seeking capital can now have access to much wider choices in terms of capital investments, owing to the emerging markets.

Globalisation and social media are the two most essential factors to be considered by capital seekers. Considering the fact that your ideas and products may be in relatively higher demand outside your local markets, you cannot afford to ignore to go global.

If you are looking for capital raising Australia, you will find that a large number of venture capital funds are setting up their operations overseas to identify as well as invest in new opportunities.

Global executives

One of the best ways to find investors is contacting executives in your industry. If you are in the mining sector, you can look for strategic investors from the mine operators in the vicinity. Similarly, when it comes to IT industry, executives from well-established software companies usually invest in new start up IT companies.

Find out the public listed companies in your industry and identify who their executives as well as decision makers are.

Capital raising Sydney or in anywhere around the globe is necessary for a business to grow and flourish. A right strategy can help you achieve positive results. So, understand your business needs and set your goals to form a strategy that helps you meet your objectives, ultimately helping your business to expand.

Proactive CFOs provide mindful Capital Raising Services in Australia.

May 19 2016

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