This is an age old question all business owners have faced. You could be stuck at this point too. Moving to the next level is one of the hardest things to accomplish as a business person.
New machinery or inventory may be required and you may be unable to afford it. It is, therefore, inevitable you will need external assistance. For instance, customers of an online drug store will rely on the company’s ability to fulfill their orders in a timely fashion. If they feel you can no longer deliver they will desert you. Bringing on investors into the business is tough.
Here are some of the factors investors consider before making a decision:
Proof of concept:
No matter how flashy or beautiful your product may be, proof of concept is the make it or break it factor. What this simply means is: what problems does your product solve? Will customers be willing to purchase it? What competition is out there for your product?
If your product doesn’t solve any problem, it will be a flop. Finding out whether customers would be willing to purchase your product is also important. You can achieve this by simply handing out samples to people. Once they have used the product you should ask whether they would purchase the product. Needless to say, competition is also a strong factor. A market survey of similar products should tell you how fierce your competition is. Giving your investor all this pertinent information will determine whether he invests or not.
Passion
This is not a factor to be scoffed at. Simply put, it is easier for you as an entrepreneur to work on something you love. Your drive and ambition on a project that isn’t close to the heart will be minimal. It will be just another way to make ends meet for you.
An investor will look to gauge how passionate you are about the venture. If the passion doesn’t exist, there won’t be any investment for you.
Attitude
Your passion for the business and its books may be great. However, attitude is a key factor the investor will look at before deciding on whether they will invest into your business. Before looking for investors, you should ask yourself: Am I ready to listen to other ideas about my business?
If the answer’s not positive, you won’t receive any help. No investor is willing to put in their time and money into a business that does not value his/her opinion. Attitude is a key factor for investors. Ignoring it could be the difference between a healthy or a flailing business.
Vision
Do you want to know the difference between the wannabes and companies that make it? Vision, it is the single biggest determinant of how large a company can grow. Once your company has a vision of where it wants to be. Growth can be optimized to meet the company’s vision.
To investors, if a company has a good vision they will be drawn to it like moths to a fly. Setting out a clear vision for your company will help you draw investors to your business with minimal ease.
