When it comes to your business, you want to make sure that you’re making all the right moves. Since the goal is to become as successful as possible, you have to make sure that you’re doing everything you can to get there. However, for many small business owners, they can’t do it all on their own. To scale up, they need investors.
But how can you find the right one? Fortunately for you, we’ve compiled a list of the top three factors to consider when choosing an investor. These tips come from high profile wealth management companies, so listen carefully:
- Choose a Person, Not a Checkbook: If you need capital right away, you may be thinking that you should pick the first person that makes you an offer. While that does sound like an easy way out, you have to consider that he or she will be doing a lot more than writing checks. An investor is now a part of your business, whether you want him or not. Thus, be sure that you and your investor get along well and can work together without butting heads. In the end, he has the money, so you’ll either concede or risk ruining your business. Choose wisely.
- Assess All Value, Not Just Financial: For many business owners, they get too wrapped up in the numbers to understand all of the value that they can get from an investor. However, this is a mistake, at least according to top wealth management firms. Instead, compare different investors to see what else they bring to the table, such as business management assistance or development deals. An equity investment is more than just dollars, it can also be time and money saved.
- Determine How Much Time is Invested: While you may think that it would be great to have an investor who writes checks and leaves you alone, the reality is that you want someone to be helping you through the process of expanding your business. Thus, compare how different investors will spend their time and pick the one that can dedicate more to you than anyone else.
Overall, getting an investor is entering into a partnership. Don’t get stuck with a partner that you don’t like or that doesn’t have your best interests in mind.
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