How to make your business attractive to worthy investors
Posted Monday, August 6 2012 at 17:47
One of the key components of any business is capital. Its needed when the business starts and when there is need for growth.
Entrepreneurs can also raise funds from investors who believe in what they are doing and want to be part of it.
The advantage of having an investor, as opposed to a bank loan, is that you get a strong partner who is passionate about the business.
The partner will act as advisor, companion, and financier. Further, the relationship built will be longer than that with a bank.
There are a few rules that a business must observe to attract a worthy investor. First, be good at what you do. No one wants their name and stature dragged into mediocrity. Have an edge for excellence from the first day you open your doors. If it’s good, people will talk about it, and important people will want to be associated with it.
Secondly, have structures and systems that work.
No capitalist worth his name and title wants to be part of a mess. Put your house in order. Hire the right people who know their duties well. Train your staff to appreciate their mandate and the nature of your business. Have the right equipment running at the premises.
Get your accounts right.
Bookkeeping is one of the biggest knockouts in sourcing for an investor. Finally, one should court attention. No one will invest in you if they don’t even know you exist.
Join a business clubs or society. Where possible create a presence in the media. Participate in international exhibitions, they usually attract people from all walks of life and you never know, it might be your day.
This said, what does the investor look for before putting his money into an idea? Key is profitability. An investor wants to grow his capital and you should work to prove to him he will. In addition, he is looking for purpose.
There must be an idea worth talking about at a golf course, not an average story.
Thirdly, others are looking for actualisation. This may come in the form of mentorship, helping the needy, or working with the youth.
It behooves the entrepreneur to position himself appropriately by meeting the interests of the potential investor.
Odhiambo is the managing consultant of Elim Consulting. email@example.com