There are countless reasons why looking for investors and investments is a great idea. Whether you have an innovative start-up or a slowly dying business, growth ideals but no extra cash flow to spend or expansion potential but few connections willing to offer you support, an investor might be just what you need.
What can investors and investments do for you?
While a business owner is emotionally attached to the company, investors are emotionally attached to their money Therefore they assess not only the current success of a business, but having in mind the potential for future triumphs as well. Because „bad investments can create problems you’ve never had”, they thoroughly re-examine all the available data: emergence of new competitors, attractiveness of the brand itself, the development stage of the market, utility of the product and many more, before deciding on a deal.
So what are some things they can do for you?
Quick access to money. Yes, this might seem pretty obvious. Besides the benefit of immediate access to capital, they will help you balance the business finances better. And, if you are a start-up just trying to step into the market, this can be a tremendous opportunity for you.
They will take you out of your comfort zone. You have to be daring in order to reach the top and that is one thing investors are really good at. They will push you to take risks and exploit new opportunities, as well as do things that you might not understand on the spot. However, it is known that the main goals of investors and investments willing to provide financial capital for a firm are generating higher income and maximizing profitability. So there shouldn’t be any worries there.
Access to a larger group of investors. Being trained professionals, chances are that their networks are equally valuable and so, even if they don’t sign a deal with you, some of their connections might. Be open to these opportunities and show them the merit of your business. Oh, and bonus: you might get a piece of advice from some of them.
What can you do for them?
Be honest with your staff, partners and especially potential investors. Keeping serious issues in a closet will only make them rot and you don’t want or should have to deal with that. Expose everything that needs to be exposed and then start solving matters.
Accept what you did wrong, but most importantly accept that you need a helping hand to correct those mistakes. Very few would invest in a company with a boss that only blames the employees, but many would invest in a company with a true leader.
Be confident, but don’t overestimate your powers. Think realistically about future objectives and share them with the investors, then show determination to surpass those goals. Overpromise and under-delivery is a fatal combination.
Believe in what you do. Show investors that your vision is indeed unique and it deserves support. It’s you who has to believe in your company before anyone else. You need to protect your business. It’s your baby after all.
The real question: do you need investors and investments?
A study conducted by EY Global Capital Operations and Innovation Study (COInS) has gathered the opinions of 500 Chief Executive Officers around the world regarding the necessity of capital investments to cover the pandemic-driven losses in the TMT sector. 85% of the leaders identified in the group of respondents believe that investments are crucial for the recovery of this industry. And this is only an example.
The context of the Covid-19 crisis has taken a toll on many businesses worldwide. Only a part of them managed to secure financial support in order to ensure the survival of their companies and the rest are still struggling. That being said, during these trying times, the decision to seek investors and investments in order to start your business, keep it alive, allow it to grow or expand on a new market, is truly up to you.
Juggler of words and wizard of controversial ideas, I am here to share with you the world of investors as it is and as it could be.
Putting together my B.A. in foreign languages, M.A. in international development and all the knowledge acquired through Mentori de Romania, I am here to show you that holding a pen – or in this case, typing on a keyboard – clicks with me best.
Juggler of words and wizard of controversial ideas, I am here to share with you the world of investors as it is and as it could be. Putting together my B.A. in foreign languages, M.A. in international development and all the knowledge acquired through Mentori de Romania, I am here to show you that holding a pen – or in this case, typing on a keyboard – clicks with me best.