I am inspired by the energy, passion and commitment of business owners.
I meet many who are looking to take their business to the next level.
They want more, but they are not quite sure how to get there.
Many are seeking investors in the belief it will help them get there, or at least chart the course to make navigation easier.
Before you decide you need an investor, ask yourself the following questions:
- Is the business ‘investor-ready’?
- Does it have enough customers, revenue or forward sales orders to determine a fair value?
- Are there more things you can or should do before you approach an investor?
- Do you really want an investor in the business? If so, why and for what purpose?
- Are you flexible enough to adapt to a new ownership and reporting structure?
- Are you ready to ‘give up your baby’ in favour of growing it?
- Does the business actually require investment, or is there something else it needs more?
- What do your require from the investor? Cash? Networks? Expertise? All of the above?
- Do you have a clear plan as to how the investor’s money will be applied and what returns it is likely to produce?
- Have you optimised the business revenues, marketing, processes, etc. to maximise the sale price?
- Are you the right person to take the business to the next level, or would it need an experienced manager so you can focus on what you do best?
- Will securing investment deliver your expected outcome of lifestyle, money, time, etc.?
This list of questions is not comprehensive, but hopefully will assist you in deciding if now is the right time to think about investors.