Business partners with capital offer a way for SME owners
Business partners with capital offer a new way for SME business owners to exit their business post lockdown
A recent survey during lockdown of 161 business owners by ownership transition specialists Platform 1, has highlighted that the importance of capital to business owners.
Thirty two percent of business owners said the sourcing of capital would be more important to business success over the next 12 months.
Traditionally business owners have accessed capital through banks and non-bank lenders or have found an investor. However, the survey showed that capital from an external business partner who works in the business would be a consideration for 48% of these business owners.
“Introducing a Business Partner who works in the business brings added benefits to the owner in addition to capital. The right Business Partner also brings in complementary skills to help the business navigate challenging times, pivot and grow. The Business Partner can also form part of the business owner’s succession plans by gradually acquiring shares in the business”, said Platform 1 Director Mike Warmington.
“When sourcing a Business Partner to work in your business it’s important to focus on the 3 C’s – Capital, Capability and Compatibility. All three attributes are required for this arrangement to be successful,” said Mr Warmington.
About Platform 1
Platform 1 works with private business owners looking at succession. They specialise in finding people with capability and capital who gradually transition into a business over time to an agreed timeframe.