New Business

You’ve decided that you would like to seek out a private investor, or business angel to help you start your business. Do you know the criteria an investor looks at to decide whether or not your business is a fit with their investment goals?

Of course, no two investors or business angels are the same. Many of them go on a ‘gut feeling’ based on how they feel about you and the existing market conditions.

There are however, general guidelines that each investor will take into consideration before taking on a business investment.

• Nature of your business – is it considered to be in a high growth market? Does it have profit potential? An investor will be looking for great business ideas that have a unique selling position (USP) and a good potential for growth. An example would be a business in the technology or health fields.

• Amount of capital needed – most investors will put up the capital needed to get your business started; but they like to see that you don’t have completely empty pockets. Even having a small percentage of start up capital shows them you are serious and not just looking for a handout.

• A comprehensive business plan – this needs to be as detailed as possible. Try and have at least a 5 year plan in place. Include income and expense projections, marketing ideas, cash flow, mission statements, organization charts, etc. Make it look as professional as possible. An investor will look at these numbers closely to see if they are attainable.

• Experience – what skills are you bringing to the table? What practical business experience do you have? Have you run a business before? What education do you have? An investor will be less willing to enter a partnership if you have no previous experience.

• Commitment and desire – are you truly committed to propelling your business forward, or are you just testing the waters? An investor will want assurances that you are going to show up every day and be willing to do what it takes to succeed. Entrepreneurial qualities like self-discipline, self-mastery and self-management are key.

Wherever you are in the world, chances are there is a private investor willing to help provided you follow a few basic guidelines and approach them in a professional manner. Remember that this is a partnership; you must be willing to do your part as well.

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.

Article Source: ArticlesBase.com - What a Private Investor Wants Before They Invest in Your Business