Things Entrepreneurs Should Think About When Looking for Investors

As an entrepreneur, the ability to own and operate your business is one of the most rewarding and most challenging jobs you can ever have. Nothing compares to being in full control of your business and being your own boss. But it’s not without its ups and downs. At some point, you may need to get funding from investors to expand your business or to keep it running. Here are some things to consider.

Investors are looking to invest in businesses, not business ideas

Your business is your baby. Like any proud and happy parent out there, you think your business is the best there is. Nothing wrong with that, of course. Your potential investors may have witnessed your business’ small successes. However, it’s not enough just to have proof that your business is a hit in the market. You should be able to show that people are willing to spend money on it. It should be a great business idea with substantial proof that it can make it out into the real world and generate profits. Aside from being a terrific business idea, it should also be a proven workable business model, even on a small scale.

Entrepreneur Looking for Investors

Investors invest in a good team

If your investor doesn’t feel confident about you and your team’s abilities and capabilities, that investment is not going to happen. Ever heard of the saying “Bet on the jockey and not on the horse”? This also holds true in business. The more experience and industry credibility that you and your team have, the higher your chance for success.

While you still have the chance, address your team’s weaknesses. Don’t be afraid to admit your personal weaknesses, as well as your business’. Just try to strike a balance between being honest and winning your investors over with your sales pitch. Also, take a long hard look at yourself, the entrepreneur. As the leader of your business, you should have a strong character and unquestionable integrity and leadership. It’s your responsibility to form a team that will lead you to success.

Don’t run out of money when you’re trying to raise money

If you’ve been running your business for a while now, expenses are probably piling up. Money is coming in, but maybe not just in the amount that you’re expecting. Investors will know if you’re having money troubles. They can smell blood in the water and sense your desperation. If you can keep your business thriving by tapping into your personal resources, or asking your trusted network of friends and family for a cash loan, or even getting a short term personal loan online, do it. Exhaust all your options first before your panic leads to irrational action.

The silent investor is not always very silent

They may be absent from daily work operations and share in the profits and losses, but not all silent investors are silent. They will want updates and will be very involved. They will make sure that their investment is being utilized and handled properly. On the upside, it just goes to show that they are very much invested in the welfare of your business. So much invested that they will stop at nothing to bring in more contacts and connections and make sure that the business thrives and grows.


Author Bio: Rouselle Isla is an avid book lover, whether it’s the paper or digital version. She has been posting high value content onlineand has published several articles for websites such as iMoney Philippines (