Investor Question

I own a telecommunications company. Its a limited company with only 2 directors. Up to now everything has been going grand, business is good. Gladly the recession is not effecting us, it has actually increased our sales as our new customers are jumping ship from their old providers due to the credit crunch. We have never ever got a loan to finance our business, it has all been out of our own pockets.
This has made the roll out of our services very slow as we have to wait until the excess capital is there and then use it to fund another leg of our roll out.
We want to find an intestor(s) which may help to speed up our growth thus most likely being able to provide several jobs for potential employees.

Question:How does the whole intestor scenario work? I know next to nothing as to how its done and the benefits.

Do you mean investor? You could post an ad in the Business Sections of the major newspapers. You'll have to consider selling part of the business to the investor, so you'll need an idea of what the business is worth. Your accountant could probably help you find investors too. Or you might qualify for BES investment. Professional help is definitely required here.

extopia said:

Do you mean investor? You could post an ad in the Business Sections of the major newspapers. You'll have to consider selling part of the business to the investor, so you'll need an idea of what the business is worth. Your accountant could probably help you find investors too. Or you might qualify for BES investment. Professional help is definitely required here.

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I was not yet looking for an investor, but more how the whole system works, what they get, what we get and/or loose?

Well, the short version is that they give you money on the basis of a three year business plan with financial forecasts.

In return, you give them equity on the company (based on a valuation negotiated on the back on your current performance and plan)

Then, depending on the investor, after 3-5 years you buy them out or sell the company.