Investors. The word is often called and sought its existence by entrepreneurs, especially 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 :
1. It’s not about the business. It’s about who we are
Many entrepreneurs who earlier met investors too excited to explain about his business, without preparing the executive team. But the views of investors first is who we really are? Do we deserve financed? 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 are not enough track record to sell, find a counterweight. 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 thing that is important is what kind of business model? In short, what the business flow of a process of selecting raw materials to finished products and to be in the hands of consumers, along with the allocation of costs and revenue projections. Here began the technical talk, and we must 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 the business that we offer will evolve. Is this business can be duplicated in other areas or not? How fast is the process duplicate? Estimate how long the business will thrive before it reached its mature and then entered a phase of decline? Surely this is related 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 is also a have strategy buy, build and sell. But any investor tips helps us provide an exit strategy options they can take. There are several kinds of exit strategy that is often used, ranging from buy-back strategy, the second stage of investment, equity to loan capital, up to the IPO (Initial Public Offering). All depends on the type of investors encountered. The average professional investor has a time frame of between 5-7 years, depending character business and negotiating with investors.
The above are some of the components into consideration for investors before investing. There are also many investors who did not heed the above, especially individual investors. However good we are always ready on the above questions because we never know when the opportunity came. All we can confirm is that we are ready whenever the opportunity came.