Unless you have deep pockets and extensive connections, chances are you will need to source for funding when setting up your new business. Investors and venture capitalists want ideas that can work. They’re not interested in your product but rather, how your product is going to help the final consumer and generate income for them. So with that, here are 5 more important things that investors look for before investing in new businesses.
Why should an investor invest in your business when there are thousands more similar to yours? What’s your unique selling point? The more unique you are, the greater your market share, and the better the returns. Simple.
If you can’t handle the finances you already have, then you don’t need more. That’s their logic. So you need to demonstrate sound money management practices and show them that you can manage their money well and put it into good use. Only and only then will they be comfortable to fund you.
The right industry
Not every investor is fit for you. You cannot pitch to someone who’s exclusively experienced in the oil industry about your agricultural product. So seek out investors who align with your business’ goals and vision for a perfect relationship.
Investors want to invest in a business where the owner has the greatest traction. This demonstrates your ability to see your ideas through and it gives investors a glimpse of where you may be headed. And if they see what you’ve done with the little you have, they might wonder how much more you can do with more money.
Finally, they want returns. Can you give them the best return on investment? What will be the profits? What are your costs? Demonstrate to them that your idea is viable and see them shower you with funds.
If you’re not sure where to start, let OSAR Enterprises help you. We have extensive connections in tens of markets distributed across the world. We will help you pitch to the right investors and help you grow your ideas into tangible results. Get in touch!