What do investors look for in a business?
If you are looking to approach an investor to get the funding for your new business venture, then you have to keep certain criteria in mind. Remember, investors are looking to make profits from your business. They won’t invest into your business if they don’t see the opportunity to get some solid ROI from it.
The first thing you need to have at hand when you approach an investor is a good business plan. Your plan should show a good amount of ROI that can be obtained from your business over time. Remember, you are dealing with seasoned businessmen here. They can easily spot the flaws in your business model. If the expected profit margin is too high, they will become suspicious of its feasibility. If it is too low, they will lose interest in the offer. If you have doubts regarding your business plan, have a management expert review it before you approach investors.
Investors, especially angel investors, prefer investing in businesses located close to their home or office, so that they can check up on it from time to time. So, look for investors located close to your business facility. That will give you a slight edge in getting your investment.
Invest at least some of your own money in your business, however small the amount may be. This shows that you have faith in your own plan, and may give you a slight edge in getting the investment.
Investors love to see people with strong management skills backing you up in your business. That way, they can be sure that the business will be run according to market trends and proper business practices. If you have solid management skills and have some experience with running a business, then it is fine. Otherwise, you will have to hire some experienced management professionals before you approach the investor.
There are a good number of websites that seek to unite angel investors or other business investors with aspiring entrepreneurs. EntrepreneurInvestorNetwork.com.au is one such website that unites entrepreneurs with the right investors, turning their dreams into successful realities. Visit it today to make your dreams of starting a new business a reality.
About the Author:One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.
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