“5 things your business needs to attract investors”
Investors can be very crucial for small businesses– not only can they bring in capital investment, but they also have many years of valuable experience to bring to the business. Bringing outside investors into your company will be one of the most important decisions of your business life, so be absolutely sure.
Raising money through investors, private equity, or venture capital can put you on a path to great expansion and market share. Also, you must weigh the loss of control you will incur, and the increase in oversight you will most certainly experience. Still, for many companies—particularly those with serious growth ambitions—outside funding is a necessary precondition for success. So, what are the 5 things your business needs to attract investors in Nigeria?
The first thing you need to attract investors to your business is a business model. Go online, make your business research analysis and even get help or hire professionals if you have to. Get a great business model to mirror your business after. This will not only help you attract investors but it will help you get a grasp on your business timeline and possible projections too.
To attract investors, your business needs to be scalable – it needs to have ample room for growth. Have a growth plan. What is your business direction after one year? Is there a particular fork in your business timeline that would necessitate a duo-directional business expansion? What figures would mean growth for you? How would you check for redundancy in your business strategy? All these questions need answers and only a BGP can proffer answers- to you and prospective investors.
What is your Unique Selling Point (USP)? Rather than focusing on the product or service you are offering, investors will want to know what differentiates your business from others in the market. What solution are you offering? What problems are you solving and what is your customer experience like? What are the pain-points you are looking at to drive your business value? All these would form your Unique Selling Point (USP).
Also, your business needs to be able to have a solid team of exceptional individuals. If you are the only bright spot in your business, investors will be concerned about something called “key-man risk”. This means there’s a risk of the business collapsing if you are not around. Develop your team such that, it can stand with or without anyone.
A very key aspect of the 5 things your business needs to attract investors would be data. Concrete financial data. Sadly, this is mostly out of the capacity of most business owners. To get good data representation and accuracy, most businesses need to hire external accountants or auditors who charge incredulous sums to compute, manage and interpret the data for them. This has been a challenge in Nigeria more than before as various agencies require financial data to be able to process your business needs and request, or even give your business appropriate badges and licensing. Investors or even banks, would not put their money in a business that doe not have due data. So, how do businesses solve this conundrum without breaking the bank?
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