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Do’s and Don’ts of Investment

admin — Sun, 27 Sep 2009 08:30:35 +0000

Private investors

need to know what to look for in an investment, and also what should definitely be avoided. Here’s a quick run through of the dos and don’ts of investment.

DO look for an investment that has potential for growth. Without growth you can’t hope for any form of profit, and as such your return is out of the window. It’s your money that you’re investing, so make sure it’s going to be worth it.

DO find a business partner who has a clear understanding of finances and the business market as a whole. Of course, as a private investor you’ll already be well versed in the area, but you’re not there to babysit your business partner. While you can offer advice and guidance, they need to have an idea of what it’s all about too, especially as they’ll be spending your money. You need to trust that they’ll be spending it wisely.

DO look for a business plan that shows everything you need to see. If it’s not spelled out for you, or if it’s strategically hidden, it could be that the investment isn’t going to offer everything that you need it to. As a private investor, you’ll have the pick of the best plans available, so wait until you’ve got one that ticks all the boxes.

DON’T be put off by a business idea that seems risky. Often, it can be the riskiest ideas that turn out to be the most profitable, as they’re usually the most unique and bring something new to the market. It could even be the next big craze to hit the streets, so make sure that you’re the private investor who gets in first.

DON’T accept an investment where you’re not getting the share that you want or you can’t see the exit strategy that you need. Private investors put their own money on the line, and if you’re not getting the return that you’re looking for or in the best time then it isn’t going to be worth your while.

DON’T accept a business investment until you’re absolutely sure that it covers everything that you need it to. Private investors should always be on the lookout for the next big opportunity, but at the same time don’t jump into an investment without all the details. Make sure that it offers you the best return, is a unique idea and one that can grow considerably. Also, make sure that you can get on with your business partners, as not doing so has the potential to destroy the business.

Private investors should always keep in mind these dos and don’ts. If you do, you’ll be able to make the best investment decision possible.

Australian venture capital and how to find it

admin — Tue, 22 Sep 2009 01:18:38 +0000

Australian venture capital

If you’re seeking Australian venture capital, you’ll need to know not only what it is, but also how to find it. Here is a quick run through of everything you need to know about Australian venture capital.

Australian venture capital is usually in the form of venture capitalist firms. As with all venture capital, the ultimate aim is to find businesses with huge growth and profit potential and to take them to the next level. In doing so, they attempt to make as much profit as they can. Australian venture capital is no exception.

Australian venture capital firms will be extremely selective in who they invest in. The business usually has to be further along in its journey than start-up, and will need to have a sound business model and a great management team that the firm can trust to run the business successfully. Only if the business can offer everything that they’re looking for will Australian venture capital firms even consider investing.

To find Australian venture capital, you could try any number of routes. Go to your local business enterprise or organisation, as they’ll usually have a network of investors looking for opportunities. If not, scour the net for the huge number of websites that can connect you to Australian venture capital firms.

Don’t be scared to approach Australian venture capital firms directly, as they’re usually more than willing to read through your proposal. However, be prepared for some stiff competition, and if you can try to get in contact with them through someone who already knows the firm. That way you’ll be more likely to be considered, as personal recommendations can go a long way in these situations.

As you can see, Australian venture capital firms can be far easier to find if you know where to look and if you understand what they’re looking for. By knowing what they want you stand a much better chance of being successful in securing investment from them, and it’s worth being prepared for some tough questioning.

If you’re successful, Australian venture capital firms will be able to offer a high level of investment thanks to their network of venture partners, and could easily take your business to new heights with their years of experience. If you can, and if you pass their criteria, finding Australian venture capital could be the best thing to happen to your business.

Will venture capitalists be interested in my business?

Private investors – what should I look for in a business?

admin — Sat, 12 Sep 2009 02:08:22 +0000

Private investors should always know what to look for in a potential business, and should ideally have a set list of criteria that a business needs to pass before investment is even considered. These are the top things that private investors should look for in a business.

A potential business should always have potential for growth. This has got to be top on the list for private investors, as if a business doesn’t grow it can’t be profitable. Profit and return is what a business is all about, even more so for private investors whose only concern should be how much of a return they can make.

Private investors always need to look for businesses with a clear business plan that answers all their questions and has all the details clearly stated. A business that isn’t transparent with every detail should be disregarded, as chances are it won’t be as good as it’s making out.

You should make sure that your potential business partners understand business as a whole as well as their own. It goes without saying that they need to know their own business inside out, including all financial details. It’s your money on the line, and you need to be able to trust them with it.

A potential business should always be unique, or it should be selling something or providing a service in a way that has never been done before. This is something that private investors always need to look out for, as if it isn’t a unique idea then chances are it won’t be as successful or profitable.

Private investors should always make sure that their exit strategy is clearly put in place before they begin. You should be no exception, as if not, you can’t be sure that you’ll be getting it in the way that you’re expecting, and the vision of your business partners could end up being very different to your own.

Equally, make sure that your potential partners see the business going in the same way as you do. If you’re looking to get your return through the sale of the business but they have no intention of selling it, then you should look elsewhere.

As you can see, private investors need to look for a number of things in a potential business. Make sure that you have all these points covered before you begin and you’ll be much more likely to make a successful investment decision.

How can I get a Private Investor interested in my business?

admin — Thu, 03 Sep 2009 23:02:13 +0000

If you’re a start-up business looking for investment, chances are you’ll have considered a private investor. However when securing investment in this way you will need to be prepared, as they’ll have a specific set of criteria that you and your business will need to pass before they’ll consider you as an investment opportunity. But how can you make an investor interested in your business? For a few tips, read on.

To get an investor interested, you need to have a sound business plan and an exceptional business idea. The more unique the better, as it’s often the riskiest ideas that pay off the most. Don’t bore them with ideas that have been done too many times or that don’t offer anything new; make sure that your business is a new product or offers a new service, or offers an existing one in a way that’s never been done before.

After a sound business idea, the most important thing to do to appeal to an investor is to make sure that your business has the potential for growth and profit. As you would expect, the potential profitability of a business is key, as profit is the ultimate goal of any entrepreneur.

This is even more so with private investors. They’ll be risking their own money in your business, so they need to believe that their risk will pay off. Most look to see this growth within the first 5 years, and are often looking for a high return in the region of 20-30% per year. If you opt for venture capitalists, they’ll also be looking to secure their return in the form of the eventual sale of the business. Whichever you choose, make sure you portray this potential growth to the investor to get them hooked.

At the same time, you need to be realistic. Don’t show them figures that can’t be backed up with facts and sound business knowledge. They need to know that they can trust you and your business acumen, and if they don’t they won’t be interested.

An investor needs to be offered a nice chunk of the business. Again, it’s their own money, and if they’re not offered a good return they won’t be tempted to invest. Make sure you specify their exit strategy as well, as it’s no point offering them a high return if you’re not showing them how they can get it.

If you follow this advice, you’ll be far more likely to get an investor interested in your business. And if you do that, you have the potential to be more successful than you could ever be on your own.

Private investors and what they look for in a business

admin — Thu, 20 Aug 2009 04:13:41 +0000

Private Investors

If you’re a budding entrepreneur, chances are you’re thinking about ways to raise investment. One of your options could well be investment from a private investor. But what actually are private investors, and what do they look for in a business?

Private investors come under many guises, be they business angels, venture capitalists, capitalist firms, a partner in business or many more besides. But the one thing they all have in common is that they’re all successful entrepreneurs in their own right, and that they’re all looking to invest in businesses that they can add to their portfolio. They have the potential to bring a large amount of investment to your venture, and have the experience to back it up.

Private investors have usually been involved in a number of successful businesses before they get to yours. This means that they know what to do to make a business a success, and will be able to bring their years of knowledge to make your venture just as much of a success as their previous ones. But, being so experienced also means that they know what to look for in a business, so make sure you can cover all the areas.

Partner in business

Firstly, an investor looks for a business that has potential for growth. Growth means profit, and it’s the only way that they’ll consider investing. Private investors have put their own money on the line, so they need to see that they’re going to get a good return on it and that it will be worth the risk.

They’ll also be looking for entrepreneurs who can see where their business is going and who have the ability to take it there. Make sure you have a sound business understanding, not only of your own business but of the wider market as a whole. You need to know your finances inside out, and they’ll be looking for a business plan that has everything spelled out for them.

Investors need to see a clear exit strategy from the investment opportunity. This is usually in the form of profits or the eventual sale of the business, so make sure that you’re offering them a good proportion of the business to make it worth their while. They’ll need to see a fairly quick return on their investment, usually liking to see some profit coming back to them within the first 5 years, so make sure that this is part of your vision as well.

Business angels

Private investors can be a great asset to your business, and now you know what they are and what they look for in a business, you’ll be more likely to attract them to your own potential money-maker.

Business angel investors and what they look for in a business

admin — Sun, 09 Aug 2009 22:02:43 +0000

If you’re a budding entrepreneur, chances are you’re thinking about ways to raise money for business. One of your options could well be investment from a private investor. But what actually are private investors, and what do they look for in a business?

Private investors come under many guises, be they business angels, venture capitalists, capitalist firms, business partners or many more besides. But the one thing they all have in common is that they’re all successful entrepreneurs in their own right, and that they’re all looking to invest in businesses that they can add to their portfolio. They have the potential to bring a large amount of investment to your venture, and have the experience to back it up.

Investors need to see a clear exit strategy for them to reap their reward. This is usually in the form of profits or the eventual sale of the business, so make sure that you’re offering them a good proportion of the business to make it worth their while. They’ll need to see a fairly quick return on their investment, usually liking to see some profit coming back to them within the first 5 years, so make sure that this is part of your vision as well.

If you are looking to raise money for business register today and find a business angel investor to fund your business.

7 tips to getting investment

admin — Thu, 06 Aug 2009 00:40:00 +0000

Getting investment can be vital to the success of your business. But how do you go about obtaining it? There are some things you can do to improve your chances of getting investment, so for a few of these, read on.

Make sure that your business is viable. It doesn’t matter if the idea is unusual, quite the opposite in fact, as it’s often the most original and unique ideas that become successful. But it does have to be backed up by sound business understanding and a clear vision of how you intend to make your business a success.
Make sure that you know what your business does. It sounds fairly obvious, but business ideas can often get lost and diluted in the thought process.
Your business needs to have the potential for growth. If the potential isn’t there, you won’t get investment. That’s the only way that investors will ever part with their money, so make sure that your business can grow and that you clearly portray it.
Your business plan has to stand out. Investors will be presented with countless business plans on a daily basis, and they’re only going to be interested in ones that stand out from the crowd. Make sure that your plan contains all the essential facts in an easy-to-see manner. If your potential investor has to scour through pages and pages of jargon before they get to the details, they won’t waste their time reading it.
Have a clear understanding of where your business will be in 3, 5 and even 10 years’ time. If you can’t see where your business is going, how do you expect an investor to? It’s vital that you can map out your future if you stand any hope of gaining investment.
Make sure that you understand the figures. An investor needs to know that they can trust you and your financial acumen, as they’ll be risking their own money to put in your hands. Know your finances inside out, make sure you have a clear financial forecast in place, and be prepared for some tough questioning.
Know what you’ll use the investment for. It’s no good asking for an investor to pay your wages – you need to have a clear guide in place that specifies exactly why you need the funding and where you’re going to use it in the business, and it needs to be legitimate.

Getting investment can be a tricky business, but is well worth the effort. If you follow the tips above, you’ll be far more likely to secure that much-needed funding without the hassle.

What can a private investor do for you?

admin — Sun, 26 Jul 2009 08:44:45 +0000

Private investors are the investment option of choice for many budding entrepreneurs and start-up businesses. But what can they do for you? Well, quite a lot actually.

Private investors are usually successful entrepreneurs in their own right, and will have amassed their own fortune from years of being successful in business. After running the show for so many years, a lot choose to use some of their wealth to invest in start-up businesses. This can not only help the business to become a success, but can add to the success of the investor as well.

Private investors have the ability to offer a large amount of investment to your business, often more than you could get from traditional routes such as banks, and it won’t be subject to the same terms and conditions. You usually won’t have to pay any interest or late payment fees, but instead will offer a proportion of your business in return. Although giving up a part of your business can be daunting, it should be thought good thing. The investment will undoubtedly lead to more profit than you could ever make on your own, so you’ll both be left wealthier than you were before.

But, private investors bring much more to your business than money. They have a wealth of knowledge and experience, and if they take an active role, will be able to bring this to the table to make your business even more of a success. Having someone experienced in business can be a valuable asset, as they’ll know the tricks of the trade and will know how to cope with every eventuality.

They’ll usually also have a huge number of contacts, which can be invaluable. Networking can make a huge difference to the success of your business, and having contacts already there can save a lot of time and effort.

After securing investment from a well-respected investor, you’ll be more likely to secure finance in the future as well. If someone respected likes your idea, then others will trust their opinion and will be more likely to be interested too.

As you can see, private investors can do a lot for your business. They not only bring essential funds to your venture, but can add to your business thanks to the knowledge and experience that they can impart. If you can, securing investment could be the best thing for you and your business.

What can an angel investor bring to my business?

admin — Mon, 13 Jul 2009 10:22:46 +0000

Start-up businesses are always on the lookout for ways to secure an investment that works for them. Private investors are a great place to look, and angel investors in particular can be extremely beneficial if you’re a start-up company seeking that initial push. But what can they bring to your business?

For starters, angel investors can usually offer more money to your venture than you can get from traditional routes. They won’t be asking for unrealistic interest rates or payment schedules either, but instead will opt for a proportion of the business.

This, too, can be beneficial. Because they’ll be investing their own money they’ll have that extra incentive to make it a success, as if the business fails they’ll lose all their money. This means that they’ll usually take an active role to ensure that it works.

Even better, angel investors are usually successful entrepreneurs already, so their active role will bring a wealth of knowledge and experience to the table. This can often mean the difference between the success and failure of a business, as if you’ve got someone on board who’s already a success and know what works, you’ll be more likely to succeed in the current venture as well.

If you look for an investor who already has experience in the field your business occupies it can be even more advantageous. If they’ve run successful business in your area they’ll bring their specialised knowledge and will know the specifics to make it a success, and any nuances will already be accounted for.

The experience of an angel can be invaluable to any start-up business. Often, although a start-up will have the business mapped out in front of them, actually doing it for real can bring new challenges that they never even thought of. Having someone who already knows how to cope with these challenges means that you’re more likely to overcome them.

Never underestimate the value of the contacts that an investor can bring as well. Not only will networking be a breeze with a respected entrepreneur in your team, but you’ll also be more likely to secure future investment if someone in the field already has faith in you.

Angel investors are a great way to secure investment, and should definitely be considered if you’re looking to raise finance. As you can see, they can bring a huge amount to your business and can make it a real success, and you’re far more likely to be profitable with the help of an experienced entrepreneur behind you.

Will venture capitalists be interested in my business?

admin — Mon, 22 Jun 2009 01:39:17 +0000

If you’re after investment for your business, one of your options could well be a venture capitalists. But will they be interested in your business? Well, it depends on what you’re offering. Venture capitalists usually has a specific set of criteria that a business needs to pass before they’ll invest, so make sure your venture ticks all the boxes.

First up, a business needs to have great potential for growth. Growth and profit is the primary goal of any venture capitalist, and is the only way that they’ll even consider investing. Make sure that your business has this potential. Usually, venture capitalists need to envisage this growth happening within 5 years, otherwise they won’t be interested.

Even if it’s a unique or unusual idea, don’t be put off. It’s often the most unusual or seemingly risky ideas that will make the most money in the long run, so make sure you portray this to your potential investor. Investors are never put off by risk, but if your business idea is boring, has been done too many times before or has no chance of making a profit, there’s no way that a venture capitalist will be investing.

Venture capitalists will only invest if they have a sound business plan presented to them. Your plan really needs to stand out and have all the facts and figures that they’re looking for covered in a clear, well-presented manner. You need to make sure that you cover all areas of finance and financial forecasting, so have a sound grasp of all the figures before you approach them and convince them that you can do what you’re planning to.

You need to offer them a decent share of the business. If it isn’t worth their time and money to invest, they won’t be doing so. Also, you need to have a clear exit strategy in place for them to get their return. Obviously, they need to see that they’re going to get their money back and that they’re going to get a nice return on their investment. Usually this is done in the eventual sale of the business, so if you can’t bear to see your business being sold, they won’t be interested and you shouldn’t consider them as an option.

So, a venture capitalist will be interested in your business if it’s a large company with huge potential for growth and return, if you know your figures and they can trust that you can take the business to the next level, and if you can offer them a decent share with a clearly marked exit strategy. As long as you cover all of these aspects, there’s no reason why you won’t get a venture capitalist interested in your business.