Choosing Investors

There is a huge quantity of investors that will invest in your business. However, just because the person is an investor does not mean that he/she will invest in your company. For that reason, it is very important to narrow the numbers of investors down to only the ones that are in a specific branch – yours! Your choice of investor has a lot to do with building a relationship – long term – that will benefit both parties. If you approach an investor in a branch that is not the same as your business, you will likely get a negative response – and at best a new contact. This contact is based on the possibilities of the investor neglects the proposal, but know someone who is in your branch.

You know who you – and business identity – are, which makes it easier to identify your investor. People only interfere in something that they know very well. It will be easier to discuss the whole investing topic between you and your prospective investor, and what you present will be easier to verify in comparison to what the investor already know. People will always have different perspectives, but will only put their money in something that they belief in.

An investor would rather invest in a macro-team, than in a macro plan. A macro team has different skills/expertise and know what respective team member needs to improve on. The team also knows where to strengthen each other, and in the eyes of all investors, you are only as good as the member that performs least in the team. This is where they would gain some insight on performance to expect. A macro plan on the other hand is too weak – and needs more improvement before it can be taken to the field.

In such case, you must re-develop the plan. When you contact an investor, you must provide all relevant information. The investor will carefully screen through the information provided to them – and your presentation has to rhyme with what they already know. It makes it easier for them to verify what the business propose, the plans, strategies, business’ infrastructure and execution of plans – it ultimately simplifies the relationship.

There are a lot of investors in all branches of the business world. They have different interests and goals. You must narrow down the list of investors. After narrowing down the list to branch, try to write a list of about 100 different investors in that branch. In conclusion, when choosing an investor, it is extremely important to make sure that the investors are interested in the same branch your business specializes on – if they are, you get yourself a prospective investors.