MIME-Version: 1.0 Content-Location: file:///C:/8D2A9AB7/AskScore47.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" Ask SCORE
Ask SCORE        =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =             &nb= sp;            =   

 

47  Find the Right Investor for Your Business
 
F= or a business start-up, loans may be difficult to obtain, for example, if your b= ank has loaned you money in the past but now considers you overextended. Perhaps the solution is an equity partner or investor. For a profitable business, finding investors is seldom difficult. Whether you’re in the start-up phase or are already showing a profit, the real challenge is finding the ri= ght investors for your company.
<= o:p> 
A= nd whether your prospective investors are family members, friends, sophisticat= ed investors, angels (private investors) or venture capitalists, you owe it to your business to find a good fit. Here are seven tips to jump-start your thinking about the type of investor you may be considering:
  1. Ask yourself whether, in exchange for financing, you are willing to accept advice and management assistance from the investor.  A potential investor who is keenly interested in the operational details of your enterprise may want a larger role in day-to-day manage= ment than you’re prepared for.
2.&n= bsp;     Discover how much reporting the investor will expect fr= om you, and how often. Monthly financial statements are one thing. The expecta= tion of special financial or operating reports that you wouldn’t normally = take the time to produce, on the other hand, should give you pause.
3.&n= bsp;     Identify an outside party with the expertise to review = the deal. If you don’t see a source of expertise and good judgment in your own network, consider hiring a consultant to look at the big picture. =
  1. Research the backgrounds = of any investors you are considering to ensure that they are reliable. Engage= a reference search service if necessary.
  2. Understand what draws the investor to your company and the level of the investor’s commitm= ent. A good return on investment may not be the only reason for his or her interest.
6.&n= bsp;     Consider whether the investor is knowledgeable about the markets, products and technologies that characterize a business like yours.= At times, an investor’s know-how can be more important than capital.
7.&n= bsp;     Make sure the investor shares your vision for the compa= ny.

 

If = you would like to discuss this topic or business planning, business growth strategies or a specific business issue, contact SCORE® “Counselors to America’s Small Business.” To contact the Greater Binghamton SCORE Chapter 217 for assistance call 607-772-8860 or 1-800 -920-6972. You may also contact SCORE= ® for person to person counseling appointments at = the above telephone numbers. If you are already in business onsite assistance is also available. The Greater Binghamton SCORE® Chapter 217 website is found at www.greaterbinghamtonscore.org .  The national SCORE® website is found at www.score.org or sign up for email counseling at= www.score.org

 

# # #