Angel funding is often an attractive option for businesses that need a fresh injection of finance.  If you find the right investor, it can be quick and cost effective.  Often, your angel investor will be willing to contribute time as well as money to help safeguard their investment and push for an exciting return.  Usually, they will have general business experience but if you’re lucky, their experience will be directly relevant to the type of business you run.

In the catalogue and e-commerce sector, there is no real network of angel networks with direct experience of the sector.  Without doubt, there are a number of individuals prepared to make (sometimes discreet) investments in other businesses – but these people can be hard to wheedle out.  To address this, I decided to form a syndicate of investors clearly focussed on funding businesses in the catalogue and e-commerce sectors only, where we have direct and relevant experience that we can contribute to the growth of the investee business.

Our syndicate is called Gramar Investments.  If you’re interested in investing alongside us, or you have an investment proposal you would like us to consider, please don’t hesitate to get in touch.  You can read more about our ‘investee profile’ on the Gramar Investments website.

Having been through a “recovery” myself, I understand the challenges faced by businesses in the multi-channel retail sector facing a distress situation.  I’ve therefore assembled a consortium of investors willing to provide recovery finance, management input and board level advice to small and medium sized multi-channel retailers.  If this is of interest to you, please contact me.

2009 looks set to be challenging year for multi-channel retailers of all sizes.  Inevitably, the combined pressures on cash flow of a squeeze in margins and a drop in consumer spending will be more than some companies can bear, given a heavy reliance on cash from sales to keep up with creditor payments.  Fixed overheads are often not easy to slash and the very nature of a multi-channel business that relies on direct mail as a significant generator of sales means that investment in printing and mailing can require additional funding.

In 2004 my own business reached a stage where, despite healthy sales growth, it became virtually impossible to raise further funding for recruitment due to the level of creditor liabilities in the business.  A costly outsourcing error compounded the problems and took the business to the brink.  The ensuing insolvency proceedings and rescue package were possibly the most challenging period in my career.  However, the brand was saved along with the jobs of the team and, freed of the crippling burden of its liabilities, the new business structure took the brand to profitability in its first 18 months of trading.

Of course it’s always easier the second time round.  Costly mistakes can be avoided and the optimum business model can be adopted from the outset.  High level advisory input will help the management team remain focussed on the important strategic levers and targets within the business.  In short, a business recovery can unshackle you and your team from the burden of financial stress and help your brand realise it’s true potential.

For a discrete and no-obligation preliminary conversation, please contact me.