How has your business been since getting back after a few months of hiatus? I am sure that much has changed since we stepped into the “new normal”.
I congratulate the small businesses which were launched from homes. Many of these new entrepreneurs may want to scale it up to serve more people.
They may want to get more equipment or move into a bigger place to allow for more inventory. That means the entrepreneur needs to find additional resources. So, what should one do next? To seek a loan or to find an investor? People may have different opinions regarding this.
Any seasoned entrepreneur would know that choosing the right investor is as important as building a team. You cannot just blindly choose anyone at a whim. Mr. A doesn’t necessarily become the best choice just because he has been your best friend for the past 20 years.
Sometimes, it is best to keep the relationship that way than have the business ruin the friendship. It’s hard to keep things in the right perspective when two friends are really close. So, for the success of the business, it would be a whole lot better to find other people who can truly help you.
What do you look for in an investor?
As I mentioned earlier, to choose for the right investor, it should not always be the people who are close to you. You need to scout for the best person who can help you achieve your goals.
You should know the expertise and the network of your candidate. Apart from the financial resources for your business expansion, you may also need “additional brains” to make your business move forward. Choose a person who can help you with his own skills and knowledge, and has a good network of connections which can also benefit your business in the future.
Check your prospective investor’s past experiences. Know his relationships among his peers and the company that he has been with. Ensure that his expertise is relevant to your business. It is important that the person you choose knows your business that he is on board 100 percent.
It is crucial to know the motives, plans, and goals of your prospective investor. You should trust him/her and be comfortable about sharing your plans with him. He/she has to have the right mindset and can act in the best interest of your company.
The candidate investor should also believe in your capabilities as the CEO of your company. It would be difficult to get a person on board if he does not believe in what you do, or even in the way you manage the business. But you also wouldn’t want someone who only says “YES” to everything that you say. It’s either that the other person does not understand you completely or he/she just doesn’t care at all.
You should also know your prospective investor’s real intentions and sincerity. He/she should be able to tell the world that he/she is proud to be part of your team. Scratch off from your list people who don’t want to be publicly known to be connected with you or your company. These people may have some shady background and fear being exposed.
Choose the investor who is willing to connect his/her name to your company – someone who can introduce himself as part of your team and be able to proudly introduce you and your business to others.
We can only attain our goals when we choose the right people to help us with our business. Remember that great entrepreneurs, although known to be risk-takers, always take time and effort to choose wisely.
For more information, you may contact Armando "Butz" Bartolome
by email: [email protected]
FB Page: Butz Bartolome