How to pursue investment capital for a consulting companyQuestion How do we pursue investment capital for our consulting company?
Answer The problem with obtaining investment capital for a consulting company is that there is rarely a believable exit strategy for outside investors. Consulting companies don't often make initial public offerings or get acquired because they don't have product leverage. What they say is that in a consulting company, "the real assets walk out the door every night." That makes it hard for an outside investor to invest.
On the other hand, your advantage is that a consulting company doesn't require a lot of capital. You don't have product development, packaging or deep marketing expenses to worry about. Instead of seeking investment capital, lower your sights and make it happen step by step, through sweat, equity and patience. And don't be discouraged: your hard work will eventually pay off.
Brain Trust contributor:
Author of Hurdle: The Book on Business Planning
President, Palo Alto Software
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