What Smart Businesses Do to Attract Investors
How do some businesses attract investors like bees to honey? We drop 3 tips
As the owner of a high-growth business, you are constantly on the lookout to attract investment to help your company scale quickly. Yet without a clear plan, getting investment might be counterproductive. Businesses need to critically evaluate three things – management, markets & products – before they start thinking about getting investment to scale.
- Product = Idea x Execution
There's a debate about whether a business succeeds on ideas or execution. The answer is yes. A successful idea is a visionary solution backed by a sustainable business model; great execution is about focused leadership directing good talent, guiding them in taking iterative action to optimise for success. The products favoured by investors are innovative solutions supported by brilliant teams evolving their tactics within the resources they have.
- Management team
People invest in people". Building a good management team is a prerequisite before approaching investors, especially if you're a start up looking for Series A funding. A team's experience and proven track records go great lengths in impressing investors of the talent in your team. Strong teams also exhibit chemistry, which is vital when convincing investors to build a long-term working relationship with you.
This boils down to ambition. Startups may have lean beginnings, but investors need to see ambition and appetite to scale to capture a significant market segment, and become a market leader. Business that can demonstrate high market potential and high growth are the ones who will draw the best investors who will be committed to your success with their networks and work experience, and not just raw cash.
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