1. Don’t consider equity finance as a last resort.

Many businesses see equity finance as a last resort, if they are willing to consider it at all. Yet it can be an effective means to an end for those wanting to grow a successful business. The right investor will bring experience, contacts and knowledge as well as money to the business and will be equally incentivised to make it a success.

2. Don’t leave it until too late.

Finding the right investor(s) can take a long time. Trying to raise finance when you desperately need it is highly stressful. It also puts you at a distinct disadvantage in your negotiations with the investors and may force your decision making.

3. Start the dialogue and you can control the 'when'.

Getting the investors attention is the hardest part. Remember you are competing against all the other investment proposals an investor receives. If you have their attention make sure you maintain it. Keep an ongoing dialogue as to how the business is going and why you will need the investment but remember you have the final say.

4. If you’re worried about giving up too much consider staging

As a growing business, the value of your business is less now than in the future. The down side to raising money before you need it is you may have to give up more equity than you’d like. If this is the case, then consider staging the investment i.e. we need X now at current valuation but Y at a future date and different valuation predicated on us hitting mutually agreed milestones.

5. And last but probably most pertinent is… Sooner is better than never.

Few businesses hit their revenue targets in the early days so the point when you need the money might come sooner than you think. All business management is about assessing and managing the risk. In this instance you might be better giving a little more away of a growing successful company than opening up the potentially fatal risk of running out of money at a critical time in the future.