Investors. The word is often referred to and sought after by employers in particular existence entrepreneurs or who are in the early stages of the stage. Many who know what it means but sometimes when given the opportunity to meet, do not know exactly what investors want.
Actually there are a few things you want to be seen by investors, especially professional investors. Here are the things that investors want:
1. It’s not about the business. It’s about who we are
Many entrepreneurs are at the start of the meet investors too excited to explain about his business, without preparing the executive team. But the first time is seen investors who we really are ? Do we deserve to be funded ? Like what his track record ? However every business is about people business. Donald Trump has ever said that, ” I never bet on business, i bet on people. ”
TIPS : If we feel we have not enough track record to sell, looking for an equalizer. Hire people who have a good track record or are looking for some experienced advisers who want to accompany us in running the business.
2. Clear business model
The second most important thing is what kind of business model ? In short, what the business flow of the process of selecting raw materials to the final product and to the hands of consumers, along with the allocation of costs and revenue projections. Here began the technical talk, and we should be able to retain all the assumptions that we make in the business projections.
3. Is it scalable ?
This is important because investors want to know how fast we offer business will flourish. Is this business can duplicate it in another area or not ? How fast duplicate process ? Estimate how long the business will evolve before reaching the mature period and then entered a phase of decline ? This of course relates to the level of returns expected by investors.
4. Are there any exit strategy
Depending typical investor, an investor who has a buy and hold strategy, there also have a strategy of buy, build and sell. But any tips its investors is useful to provide an exit strategy options they can take. There are several kinds of exit strategy is often used, ranging from buy-back strategy, the second stage of investment, equity to loan capital, up to an IPO (Initial Public Offering ). All depends on the type of investors who faced. Average professional investors have a time frame of between 5-7 years, depending on the character of the business and negotiating with investors.
The above are some of the components into consideration for investors before investing. Many investors who did not heed the above, especially individual investors. But it’s good we are always ready on the above question because we never know when the opportunity came. All we can confirm is that we are ready whenever the opportunity arises.