ANALYSIS
Fund Raising
The first step to raising capital is to understand your target market. This is achieved by in-depth analysis of their demographics and identifying indicator trends.
Once you’re familiar with your market-sector, who your target market is and where they reside, your next issue is how to approach them. In short, your marketing program. Above the line, below the line? Retail attack, institutional raise, niche market sniping or broad market scatter-gun, radio, TV, spam, social media, Facebook, twitter, mailshot, telemarketing or maybe a newspaper campaign…. Or possibly just give the entire raising effort over to a broker?
- The main question on everyone’s minds at this juncture will be their marketing costs versus inward investment….
- What is my Fund Raising going to cost in terms of marketing and commissions?
- What proportion of the funding will I actually get to apply into my business model and when?
- Will my business be able to generate enough profit from what I’m left with to pay back the principal and interest?
The answers to all of these concerns sits in the first sentence…only by in-depth analysis of your intended target market demographic can you understand how to approach them, what your likely results will be, and how much it will cost you. Echelon Associates SL either already holds or has access to that data.
Each business transaction creates data which over time accumulates to provide ‘data sets’ that can be used to measure and predict future trends. The data can show upward and downward shifts, which can prove to be extremely lucrative for those in possession of this information. Analysis of market trends can alert you to the possibility of diminishing future profits, which may not have an immediate effect but could have a devastating impact on the bottom line in the long term.
Echelon Associates SL only provides analysis within the strict confines of the market sectors that we understand thoroughly: Property Development Companies and Financial Institutions working either within the debt securitization or lending sectors.
Selling the Product
There are many similarities between raising capital and selling product. In both processes, it’s important to analyse the target market, what price point they are computable with and if the offering is to a niche or brand market.
Of course, with sustainable/renewable energy, the market already already exists; it’s just a matter of price. If a factory is paying £$€ 00.50 per kWh of energy and a solar farm can offer energy at £$€ 00.25p per kWh the sale should be automatic.
If the product has a high capital cost, it’s simply a matter of amortising the cost of financing the purchase of the product against the current energy bills being paid. ie: if it costs £$€ 10,000 to purchase a solar kit for your home, and you can finance that kit at 8% per annum interest, your loan will cost you £$€ 202.00 per month, if your current bill is £$€ 300.00 the sale should be automatic.