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“Not having a financial runway laid out for your business is one of the major reasons businesses fail,” says Stewart. Preparing for investment means you have to look hard at your business and make sure it is on the right track, otherwise nobody else will risk their money with you.

CRN asked Stewart what a reseller might need to do to make their company worthy of attracting investment, and how a business like Hall Capital would help them achieve it. Stewart explained how the high profile IPO route was not suitable for all businesses and it certainly isn’t the first goal you should head for. Typically capital is invested in a business in stages.

The friends and family stage might provide initial seed funding anywhere from $50,000 to $250,000 investment. If things go well a company may look for an angel, or start-up investor. This is usually a high net worth individual with $400,000 to $1 million to invest in your business. If this goes well, a second round of funding to take the business to the next level is quite common. While a stock market listing may bring all the glory, Stewart said an eventual trade sale to a larger organisation is “much more likely” than a public float.

The work and costs involved in listing are considerable. You can expect half a million in governance alone and the process exposes the organisation to a high level of public scrutiny both through the float process and forever more.

Regardless of whether you want to attract private or public investors, Stewart says the ground rules are the same. To make a company attractive you have to be able to demonstrate what future it has. Is the management team complete? How is the money going to be used? What strategic alliances are in place with vendors and customers? Is there a point of differentiation (other than price) and a track record of sales? “Investors are not looking to invest in any old business”, explains Stewart.

The key to success is having hard evidence that your plan is working. You need to present a solid business plan that shows how much business you can win in the future and how you will fulfil that; you need quality management and processes; external evidence the business is on the right track; patents and trademarks; strategic alliances; ability to get government grants; exposure in the press; all these things come together to make your business look like a good risk