When it comes to investing in a business, you need to plan your market, sales and projections in the long term. Any investor, whether a banker, venture capitalist or angel investor wants the same things, so think about it from the investor’s POV. What does an investor look for when assessing a company?
Here is a list of the three most important things an investor wants to know before pumping money into any venture.
1. Financial and Repayment Plans
You need to know your numbers! Prove to your investors that your company has enormous financial potential backed by actions that, once executed, bring high returns.
Prepare to answer any question about the financial stability which you offer. Your repayment plan should also be appropriately presented.
Investors look for signs of growth and what distinguishes you from other competitors, factors such as –
- Solutions for large target markets
- Your target market should be backed by data to show why that market is your target
- Data-based, financial projections
- Sales channels
- Marketing plans and goals for success
- Intellectual property protection
- Exclusive licenses
- Exclusive marketing
- Distribution relationships
- Determining what is the competition for your product/service
- Projected timelines for when you’ll start seeing profits
- Potential obstacles and your strategies for dealing with them
- Expect investors to evaluate revenue streams, acquisition costs and turnovers.
Pro Tip – Venture capitalists will look for the potential of high returns and a clear exit opportunity.
2. Your Personal Experience
Investors want experienced entrepreneurs and management teams with a track record of high performance and leadership skills in the domain. They want to know the value your individual experience brings to the table and what they stand to get from it. Most investors will dig into your company’s background and find out the practical aspects in detail.
Your ideas should click with their values, goals and what they hope to get out of it.
Prove to your investors that your market potential is significant enough to make investing worthwhile.
Venture capitalists tend to prefer significant growth coupled with little competition when investing.
3. A scalable business model.
Investors look for companies with multiple sources of revenue and can manage a high growth scale.
Your company will show its value when profits start coming in.
Look for how to customize business plans and pitch to each investor according to their goals.
For example, angel investors emphasize both on market and financials, so focus on these facets when talking to these types of investors and impress upon them how your idea solves a mass problem.
Investing in property is an incredibly safe and innovative option in this day and age. In Pluxa Property’s case, we provide investment opportunities for Birmingham’s residents and have helped 100’s property investors grow an average of 12% in monthly yields. We have identified how to tap into the housing solution effectively. Birmingham property investment is now termed as an industry that holds a considerable part of the country’s economy and continues to grow rapidly against all odds.
Reach out to us, and we’ll set you up with the best deals in the UK.
In the end, what it all boils down to is – investors are in it to make big money! You should know perfectly well how to bring in that big money with regular cash flows and exactly how to structure the investment. Just like we are top-notch experts in our field, you must excel in your field, show and deliver that you’ll do it better than any other investment opportunity.
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