Entrepreneurs from all over the globe are doing their best to show external investors that their start-ups are worth sinking money into. Once they have impressed all the important people, they get the money, and they’re off to sail a journey towards the fulfillment of their hopes and dreams.
Yes, the money helps but there are even more important things that external investors do that drive your businesses forward.
In a recent chat with Mark Deacon, one of the directors of Superdraft Pty. Ltd, he advised young entrepreneurs to take a closer look at the people who want to invest in their start-up. Choosing the right and fitting investor could be an instant boost for the company because of other non-material things they can give.
Here are other things that good external investors are willing to invest in you :
1. Wisdom no money can buy
A secret roadmap to success an entrepreneur’s wish every Christmas. Unfortunately, Santa Claus can’t give it to you because it doesn’t exist. The journey is different for everyone but having the wisdom along the way will definitely ease the process. The investors and stakeholders of your company can act as your mentors who will guide you and help you surpass the challenges and the decision making.
“I am very fortunate to have fantastic mentors in my life. They are people who have been there and done it before me and have taught me things that can sometimes take a lifetime to learn. They have provided me with key parts of the road map to avoid dangers and making mistakes,” says Mark
2. Their precious time
Successful investors have a habit of setting their goals to guide them to their mission. They stick to it for it is their itinerary towards their nirvana. Start-ups in general are prone to mistakes, sometimes worth millions. Smart investors try to avoid this situation by investing time on you – being hands on, asking for updates and reports, and listening to your thoughts. When they invest time on you, your company is being monitored, and you’re being valued as the founder.
3. Inherited knowledge
Mark recommends that entrepreneurs choose an investor who will add some strategic value to their business. Look for experienced professionals who can recommend the best ways to raise more funds. It’s not just about the investor’s return on investment (ROI) but for the company to have more opportunities to leverage in the market.
When Superdraft Pty. Ltd. has been exposed to potential stakeholders, the directors have chosen only those whom they can crystallize their vision with. After five years, they’re still working with those key people. The directors have acquired the ways their investors and mentors strive for success.
4. Business Connections
A good investor who sees greater horizons with your company is likely to introduce you to his business circle. Once inside, you are ought to explore more opportunities.
However, do not feel bad if an investor declines to do venture with you. Reconnect and build relationships with these people instead. In some instances, these people who did not join you can endorse you to his connections too which later expands your network. You’re going deeper in the game at this point and you should be proud!
5. Their corporate conscience
Aside from the company’s mission and vision, it’s corporate conscience makes it more interesting and intriguing. Most of those efforts comprise the company’s corporate social responsibility (CSR) and soon becomes a part of the company’s image and long term goals.
The stakeholders of the company have a say on every decision made. If one of your investors value the environment, human rights, or poverty alleviation, it instantly adds purpose to your company in such a way that no decision will harm nor affect the movement they’re passionate about.
External investors choose only the cream of the crop when they do their jobs. It’s the same way for you and your start-up. You pick who can help you leverage yourself in the emerging complex market of the world. As founders, think how you’re going to sustain your creation in the long run. May the journey show you that it’s not all about the money at first. Money comes after a good product, a working plan, and on point execution.
Charlene Ara Gonzales does content marketing for Superdraft Pty. Ltd., an award winning architecture firm who makes every Aussie’s dream house come to life. Check-out their team’s top notch creations on Houzz, Pinterest, and Facebook. Connect with her through LinkedIn.
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