Realize Your Potential – Build An Investor-Friendly Business

Realize Your Potential – Build An Investor-Friendly Business

May 13, 2019 Off By Helen Olsson

Whether you run a fabrication unit catering to automobile modifications or you are the proud owner of an IT start-up, there comes a time when you need a little push with help from a good investor. We may balk at the thought of taking in debt and the mumbo-jumbo of financial terms can easily drive anyone away.

But don’t let the jargon drag you down when it comes to financial consultancy – there are a few steps you can ensure that your business fulfills its potential and the people that matter know it too.

Clear Goals Are Important

So what exactly do you plan to do next? That might seem like an easy question but once you think deeper you’ll realize that it entails not just the end goal but an entire roadmap with milestones and a timeline. Investors want to have complete clarity before they jump into a business. You need to offer them that clarity.

Get Into The Mind Of The Experts

Take a look at how investment consultants go about their business. NY-based Art Penn Pennant Park deals with millions of dollars in investments every month, boasting a network that spreads across the USA’s most financially vibrant hubs.

The firm has clear parameters about the feasibility and potential of a business and their formula is never off the mark. As a business owner, you need to get into the mindset of the experts. Some of the positives these companies look for include strong cash flows, a good management set-up, and an encouraging market position. If your business can tick these boxes, you will have the spotlight.

Nowadays, further parameters have been created for an ideal investment scenario. How compliant or flexible are you to the green factors – your business’s environmental impact is more important than ever. Social impact and quality of governance are two more standards that matter.

Break Down The Capital

Understand that getting an investment is not akin to picking up a suitcase full of cash. It means a lot of paperwork and distribution of the debt across several categories. Investments also include safeguards to protect stakeholders – without them, you may be on ‘legally shaky’ territory.

The best business relationships are established that way. You will have a senior secured debt which involves collateral. This is a priority debt that will be addressed in a scenario like liquidation. You also have subordinated debts which are prioritized below the senior debts and non-controlling equity.

Why Are The Details Necessary?

Financial decisions cannot be emotional decisions. There are multiple areas of your business that will be scrutinized. Firms like Art Penn Pennant Park go beyond just balance sheet analysis. Due diligence measures include historical reviews, background checks, on-site visits, document reviews, and much more. There will also be interactions with staff, which includes your management and vendors.

A good investment is one that benefits everyone involved. For that to happen your business needs to shine in the right areas and evoke confidence from those who study it. Acquire these multiple perspectives, know them inside out, and prosperity is yours.