The lifeblood of every entrepreneurial endeavor or small business is cash. Whether it be attainable cash flow or whether it be investors, your dream, your company, depends on it. Your risk management policies, as well as your overall risk profile, will determine whether or not you are successful in that search for capital infusion.

Capital and cash flow are the lifeblood of your business. They are the lifeblood of your growth. If you are looking to grow, and think you may need a cash infusion to do it, then you will need to examine your current risk profile and lower it where you can. Those institutions or individuals you are going to for the cash are in the risk management business, too. They are managing the risk that you may not pay them back or managing the risk of how you will pay them back. Of course, the best time to go after a cash infusion is when you really don’t need it. There are some things you need to concern yourself with to lower that risk profile and increase your chances of securing that loan or that venture capital.

Perhaps the first thing you need to do is to set up a plan for establishing what is referred to as risk mitigating milestones. Simply, these are certain steps and outcomes, that when they are finally carried out, will lower your risk profile with future investors.

One of the first things you need to do is to begin to create professional and business alliances and get yourself a professional board of advisors in place. These are two milestones that will make you seem like a major player who is serious about the future. In addition, establishing strategic alliances in business will demonstrate to future investors that there are others who believe you are a serious player.

Having a board of advisors creates an air of confidence and competence. Your investors will see you as someone who knows they don’t have all of the answers and who is willing to go and get some experts. They see that you have added strength where you have been weak. For investors, they see proven successful entrepreneurs and business people investing their time and faith in you. They see you mitigating risk.

Demonstrate that you have credible cash flow and even some reserves. This will demonstrate to your potential investors that you are a profitable concern and that you have the vision to see the future of your company and your industry. Being financially viable is, perhaps, your most impressive risk mitigation milestone.

It is, always, about risk and risk management. Those who are the best at it, tend to be the most successful.