Finding the Right Investors For Your Business


This article is written by guest author Amelia Collins.

Often, when a business searches for investors, they are looking for people who provide capital. Securing capital for a business can come from various sources. INC mentioned in a post that entrepreneurs commonly raise their initial source of business funds from personal savings, credit cards, loans from banks, parents, or even through crowdfunding.

However, finding an investor is a whole different ball game. It requires more than just getting the funds, as you need to search for someone who believes in you and your business growth, so they will write you a check to help you achieve your goals. There are different kinds of investors, but the best ones are those who actively know what they are doing. In this post, I will highlight the qualities you need to look for in an investor.

Great investment background

Although it’s common that investors are the ones that review the business and the owner’s past for reference, entrepreneurs need to do the same research. Check if the person you are eyeing to invest in your business has a great financial background and investment portfolio because even great investors can suffer bad luck from time to time. Apart from their capacity to invest, you must check how well his/her investments are doing in the market. Take note that the number of businesses invested in doesn’t always equate to how successful they are as investors.

Knowledgeable of market trends

You want investors who are active in keeping their money running. The most active investors are the ones that are knowledgeable of the past and the latest market trends, as they will be able to provide you insights on how to maintain your business and reach greater heights. Although the discussion pointed out by FXCM is about trading, the resource said active investors help the market as there is more money flowing and much opportunity for growth. If they are knowledgeable about market trends, it’s a win-win situation for you because you receive an investor and an advisor in one.

Willing to sacrifice time

Investors need to be active in attending meetings and discussions with you, as they will require updates related to how well the business is maximizing their money. Thus, they must be willing to sacrifice time to attend board meetings and similar, if necessary. In addition, good investors know the importance of knowing more than just market trends. This requires sacrificing some time to understand the key issues of the business and the industry, even those of its competitors.

Apart from having a great business plan, investors are looking for entrepreneurs who practice focused leadership. As previously discussed, these leaders are those who ‘know the course’ they want to take and ‘know all the information that flows’ through their craft. Be a focused leader and you will gain the trust of a good investor easily.

photo credit: Frits Ahlefeldt, via Compfight cc

Finding the Right Investors For Your Business

By Guest Author Time to Read: 2 min