It’s not the money that Quebec lacks to grow its SME. But, still it is necessary to assemble a solid file and to know how to present it to the potential investors to convince them to place their balls there. Here are five essential points that an SME should keep in mind when looking for investors, according to Jocelyn Beauchesne, Senior Vice-President, Regional Network, at Investissement Québec.
Posted at 10:00 a.m.
Presenting a competent management team
“When you meet the leader of the company, you want to feel that he is the right person in the right place, that he knows his business sector and that he is surrounded by the right team to achieve his objectives, says Jocelyn Beauchesne. When investors visit the company, it is also a good idea to introduce them to the key people, such as the plant manager, the person in finance, research and development, human resources . As an investor, we also take the opportunity to see if the relationship that the manager has with his employees is good and if there is respect. »
Include investors in project development
“The company should not hesitate to quickly include investors in the discussions when it wants to carry out a project, indicates Mr. Beauchesne. Often they are good advice. At Investissement Québec, we have advisors who support entrepreneurs in their thinking. For example, if you are embarking on an automation project, there are several steps to go through before getting financing and it is important to have good advice. »
Clearly explain your project
“It is also essential to properly present the product or service that we offer, with its vision and its new needs. For example, if you have to automate part of the production or expand your plant to increase your business volume, you have to be sure to give clear explanations. »
Achieve a robust financial model
“Then you have to make a financial model. We present what we have done in the last two or three years, then the cost of the new project. We also have to make financial forecasts for the next 12 to 24 months, even if it’s never an easy exercise because we have to consider the cost and installation time of our project. We must also specify what the financing needs are and how we want to achieve them. It is advisable to imagine two or three scenarios. It is important to be well surrounded to give figures that hold water. For example, by its internal finance manager, but also by its accountant who generally has experience in funding requests. »
Building a relationship of trust with its investors
“Finally, you always have to be transparent with your investors,” adds Jocelyn Beauchesne. Do not be afraid to talk about its issues. Because bad surprises, nobody wants them! The contractor must also dare to ask questions, whether in relation to guarantees or the various clauses to be respected. He is not obligated to accept the offer as presented to him. She must be good for him. If he’s signing, he’s making a commitment, so he has to make sure everything is in place for him to be able to keep it. Then, if something changes along the way, he must quickly talk to his investors to adjust accordingly while maintaining the relationship of trust. »