Turn Your Business Into a More Investable Commodity
People being willing to invest in your business is the litmus test of whether you’re on to something that is working or not. That makes it vital that it goes well. For that reason, it is important that you make certain your business is actually an investable commodity.
Today we’re going to look at some important steps you can take to make it as likely as possible that people will actually invest. Now, to be sure, they on their own are not enough. You still need a good business model. But they will help. And that is about as good as we’re going to get.
Protect your IPIf you’ve got intellectual property then you need to make absolutely certain it’s protected.
For that reason, make certain that you get a good trade mark consultant who knows their stuff. In this way you’ll be able to uphold the integrity of the brand and make certain that not every Tom, Dick or Harry who comes by your internet page can copy what you’re doing wholesale.
Create a followingFormerly fan bases, followings and loyal customers were abstract ideas. People understood that they were nice in theory, but there wasn’t really any way to measure them. That meant that though companies may have had them, it was hard to sell investors on it.
With social media, that has all changed. Suddenly it’s easy to show investors that you’ve got a big and active fan base, that thousands of people are reading and commenting on what you’re putting online and that when you’ve got something to say people listen.
And quite often a company with a big an active fan base can be more valuable than one without, even if the latter company actually has a better business model. So, for that reason, start establishing your brand online by writing up great content.
Create a plan for growthSometimes you sacrifice the future for the present. When you’re trying to attract investors, is not the time however. That’s when you really want to be working on establishing a model that has legs. You want to have a plan in place, even if only on paper, that will convince them that you’re not just going to be around in 10 years, but that you’ll be five times as big and growing.
The more detailed your proposal and the more realistic it is, the more likely investors are going to say ‘yes’ to your ideas. Realism, of course, is the keyword. Your plan can’t be some pie in the sky notion. It has to be meticulously researched, well thought out, innovative and well designed. For if they can poke holes in it, you can be certain it will be ‘don’t call us, we’ll call you.’
Work on yourselfYour business is one thing, you are another and both have to interest the investors equally, because if they like the former but can’t stand the latter, they’re either going to walk, or even worse, they’re going to consider investing with the sole purpose of getting rid of you.
So consider getting some personal coaching if you can afford it. If that doesn’t work, ask people you know who are brutally honest to tell you the truth. Do not only rely on yourself as we’re very likely to be blind to the very aspects of our personality that most annoy others.
So if you really want to make certain you are investable, ask everybody to tell you what most annoys them about you, make a list and start working on those items that are mentioned the most often. Yes, it will hurt, but you’ll end up a better person for it.
Get your reputation sortedAny investor worth their salt is going to do their due diligence. That means you’ve got to make certain your house is in order. Really, this is something that you want to be working at all times. Don’t cut corners, try to avoid making enemies and treat people well.
Anything else may very well come back to haunt you.
Also, know your enemies. Yes, you’re bound to make a few. It’s unavoidable and how life works. The best thing you can do when you’ve got some is make certain you know what they’re going to say. This way you will know what they’re going to say when investors come sniffing around, which will put you in a position to counter their arguments before they’ve even been made.
Don’t be on the back footYou should never wait until there’s an emergency to seek out investment. When that happens chances are you won’t have enough time to get the best deal you’re looking for and when somebody does choose to invest, they use the fact that you’re in trouble against you.
Instead, make certain there are no looming problems on the horizon and seek out investors when you’re actually making money and growing. That way you can wait as long as you need to and get the best deal you can possibly get and that is ultimately what you’re after, isn’t it?
Last thoughtsGetting the investment you’re after requires patience and hard work. Be sure that you’re in a position for both. In other words, make certain that you’re not so deeply involved in the day-to-day running of your business that there is no time for you to look for investment, or that things are so shaky that you don’t have time to be patient.
If you can do that you’ll get the best deal you can get and ultimately that’s what we’re all after, isn’t it?
Posted in ...Business