Entrepreneur Investor Network » private investors

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.

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.

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.