Finding an investor for a struggling business
Investment in any business can make all the difference between success and failure.
One of the key rules of business is that you should never sit still – a business is either growing or shrinking, winning or losing. This is why investment is what many entrepreneurs and business leaders seek. With investment comes money, expertise and the connections required to escalate your business and, ideally, dominate your specific market.
Gaining investment can be difficult for any business. New ventures with little to show on paper apart from a business plan often struggle the most. But seeking investment when your existing business is struggling can also be a very difficult challenge indeed. Venture capitalists and angel investors see many business plans and proposals every year – and they scrutinise everything thoroughly before making any investment.
If your business is struggling then recruiting the services of business turnaround experts that are experienced in navigating businesses away from business insolvency could certainly help. These experts can help your business in a number of ways.
Firstly, they are experienced in dealing with potential investors; they know what investors look for in a business and how to present your business from a financial standpoint so that your enterprise looks attractive. This is crucial if you are facing insolvency or suffer from negative cashflow. If done correctly they can turn your business into a worthwhile enterprise to invest in.
Secondly, business turnaround experts are extremely well connected. They have access to venture capitalists, investors and angels that most ordinary company directors can only dream about. In addition, even before you seek the assistance of an investor for your business, a turnaround expert can be particularly useful for your business; they can leverage their influence to secure appropriate bank funding and loan extensions for your business. All of this will make your company appear far more attractive to any potential investor when you go to market.
Of course there is only so much a third party can do when it comes to the investment process. If you are looking for investment then you will have to be able to sell yourself and your business too. This means that you will need to be able to speak and write well; if you cannot communicate with your prospective investment partners they are unlikely to want to invest in your business.
Experience and self-assurance are also key to reaching out for investment too. Even if your business is struggling, do not appear desperate; this will put investors off.
A calm, practical and poised approach to your business and the issues that you are facing is likely to be met with a more favourable response, far more than appearing needy. Many venture capitalists, who see hundreds of sales pitches each year, often value a clear admission of weakness from a business and a business leader; recognising a fault or weakness is the first step to overcoming it and building a profitable business.
Seeking investment is never an easy process, but despite the economic conditions it is in no way unachievable; with the right expertise to advise you and the right attitude it is possible to achieve the future your business is seeking.
By Phil Smith