Raising investment for your business can be a great way to get the capital you need to scale and grow. But before you start reaching out to potential investors, you need to make sure that you and your business are actually investment ready. Otherwise, you could wind up in over your head—and that’s not a good place to be. So, how can you tell if you’re ready to raise investment? Here are a few key things to look for.
A Solid Business Plan
Most investors want to see a business plan before they invest in a company. The business plan is a document that outlines the company’s goals, strategies, and how it plans to achieve them. It also provides financial information, such as projected revenues and expenses. The business plan is an important tool for convincing investors to put money into your company. It shows that you have thought carefully about your business and what it will take to make it successful.
Investment readiness is important to investors because it indicates whether a company is prepared to receive funding and grow its business. A well-written business plan helps investors assess a company’s investment readiness and decide whether or not to invest. If you’re seeking investment for your business, make sure your business plan is strong and clear. This will give you the best chance of success in securing the funding you need.
Start now!
If you don’t have a solid business plan in place, now is the time to create one. Doing so will not only make it easier to secure investment, but it will also help you run your business more effectively overall.
Fundraising Collateral
A large part of being investor-ready is having the right fundraising collateral in place. These are the documents and information that investors will expect to see. These include…
- A pitch-deck and business plan. Find out more about the importance of a pitch deck
- A professionally written financial model. This should include detailed financial forecasting
- Legal documentation (including patents if applicable)
- SEIS/EIS application (if eligible UK only)
You Have a Strong Management Team in Place
Investment readiness is a major factor in whether or not a company will be successful in securing funding from investors. A strong management team is essential in demonstrating to potential investors that the company is a sound investment. Investors want to see a team that is passionate about the company and its product, and that has the skills and experience necessary to execute on the business plan. Equally important is a track record of success. Investors want to see that the management team has a history of delivering results. If the management team can demonstrate these qualities, it will go a long way towards making the company investment-ready.
As part of becoming angel investor ready, Exporaise is a website which I have developed to help small businesses.
Exporaise is a website with a host of free tools and resources to support founders or business owners who are looking to raise investment. There is currently an investment readiness check, and an SEIS eligibility check with a free automatic report, as well as lots of articles and blog posts to help you grow your business! Similar to Start Your Own Business, we have a passion for supporting small businesses, and hope that you will find our resources helpful to you and your business.
The management team should be able to answer key questions about the business, such as its financial projections and growth potential. They should also be able to articulate the company’s value proposition and explain how it will generate returns for investors. Without a strong management team, it will be difficult to convince investors to provide funding. As such, companies should focus on building a top-notch management team if they want to improve their chances of raising investment.
You Have a Scalable Business Model
A scalable business model is one that can be easily adapted to accommodate growth, making it an attractive option for investors. There are a number of factors to consider when developing a scalable business model, such as the size of the target market, the company’s competitive advantage, and the scalability of the product or service. Investment readiness is achieved when a company has a clear understanding of these factors and how they will impact growth. By developing a scalable business model, companies can increase their chances of attracting investment and achieving long-term success.
Conclusion
Investment readiness is the state of being prepared to attract and receive investment. Investment readiness is not a single event, but rather a continuous journey that startups undertake to increase their chances of success. The goal of becoming investable is to ensure that your startup is attractive to potential investors. This requires a deep understanding of your business, your market, and your finances. It also requires a clear vision for the future and a well-designed strategy for achieving your goals. The good news is that there are many resources available to help startups on their investment readiness journey. Mentors, accelerators, and incubators can all provide valuable guidance and support. However, the most important ingredient for success is always hard work. By putting in the effort to prepare your startup for investment, you significantly increase your chances of attracting the interest and investment you need to succeed.
Raising investment can be a great way to fuel growth for your business—but only if you’re actually ready for it. Before reaching out to potential investors, make sure that you have a solid business plan in place, a strong management team leading the charge, and a scalable business model that will allow you room to grow. In addition, it is important to make sure that you have the right documentation in place. For more feedback and information, take our free Investor Readiness Check. If all four of those boxes are checked, then you might just be ready to raise investment for your business.
Photo by RODNAE Productions
Oliver Kennedy
Exporaise
