How has your business been since getting back after a few months of hiatus? I am sure that there has been a huge difference ever since we stepped into the “new normal”. And I could say that I feel proud to those small businesses which just started from their own homes, and now have pursued the business in order to make it a real full-time business.
With that said, it is likely that these new entrepreneurs would want to scale it up a little so that they may be able to serve more people. It’s either they would want to add in equipment and their inventory or would probably want to move into a bigger place in which they would want to have a designated place for the business. Being in business is a gamble. That leaves the entrepreneur to find additional resources to make the vision a reality. So, what should one do next? To seek a loan or to find an investor? People may have different opinions regarding this. But, either way, one should be able to weigh down things.
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. Just because Mr. A has been your best friend for the past 20 years would mean that he is the perfect investor. Sometimes, it is best to keep the relationship that way that 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 are the factors that you need to look for in an investor?
As I have 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.
1. Know the expertise and the network that the person has. Apart from the need of financial resources for your business expansion, you may also need “additional brains” to make your business move forward. Choose a person who cannot only help you with his own skills and knowledge, but as well having a good network of connections which can also be beneficial to your business in the future.
2. Check on your prospect investor about his 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 does have knowledge about the business that you have and you should ensure that he is on board 100%.
3. It is crucial to know the motives, plans, and goals of your prospect investor. You should be able to feel that he is trustworthy enough that you can share your plans with him and that he has the right mindset who can act at the best interest of your company. This is the time when you should allow yourself to hear suggestions and probably a little tweaking on your plans.
4. The prospect investor should also believe in your capabilities as the CEO of your company. It would be difficult to get a person onboard if he does not believe in what you do, or even in the way you manage the business. On the other hand, you wouldn’t want someone who only says “YES” to everything that you say. Can you imagine how a relationship would grow when your partner would just nod to everything you say, without even correcting you when you know you intentionally made a mistake? It’s either that the other person does not understand you completely or he/she just doesn’t care at all.
5. Discover your prospect 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 that they fear being exposed. Therefore, 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 be able to 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.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
