Investor Ready can stop your struggle.

Investor-Ready is about building a real business,

Investor Ready is about getting your business into the ‘fair dinkum’ department. Genuine products and management are in place, along with all the necessary facilities and equipment to make the business work well. Luck favours the prepared business, and this does not happen overnight.  It will take many hours over many months. Of course, it will take longer if you don’t have access to expertise and your systems are not in place.  Let’s become investor-ready and get lucky.

In making your business investor-ready, you are planning for investment, including your investment. Would you, or should you, invest your own money in your business?  Most companies need overhauling before they are ready for investment, including more of your own money.  Isn’t it better to put things in order and up to date before rather than after liquidation?

Just as you do, an investor wants to see that your business is a good investment. It must have a high chance of success, and the potential returns are worth the risk. Before raising capital, your business must display Investor-Ready characteristics to avoid disappointment.

What does ‘Investor Ready’ mean?

Investor-ready is a term generally used and applied by investors when businesses are looking for capital. This process can be simple or significantly involved as a company grows. To be successful, it often requires impartial, external assistance from a facilitator.

To most business owners, their business is like their child. They are very passionate about it, even madly in love with it. They see the opportunity very clearly, and they see where money needs to be spent. How this is seen to impact growth and profit positively is questionable. They are convinced they must go for it, but now they must convince the investors.

Start the process while you are small.

Businesses struggle mainly because there is always pressure to remain involved with business operations.  There is always a conflict between getting Investor-Ready versus  ‘doing’. Conflicts can include cash flow pressure, sales pressure, people problems, telephone answering, and other operational activities.

People are always busy, with no commitment to putting things in order. They want to drive the business and attract the right investors, partners and other needed resources but are reluctant to do the work required.

Investor-ready businesses make things happen.

Approaching investors unprepared is probably the most common reason businesses and non-profits fail to attract capital and grants. Investors see 10 or 100 proposals a week. If your proposal does not include most or all of the following, you have a problem. Chances are you won’t get past first base, and the investor will immediately move on to the following proposal.

• Business Model that works.
• A working business plan and budget are in place, and that works.
• With up-to-date financial figures and reporting, you are financially savvy. http://goo.gl/0vynwy
• Valuations of critical assets that are reasonably current.
• A mature management structure is in place.
• External advisors are in place.
• An owner’s Operations Manual or Policies and Procedures are in place.
• Transparent workflow systems and processes are in place and working.
• Market growth strategy.
• Strong growth and growth potential.
• With the right attitude to new ideas and change, you understand possible disruptions.
• Intellectual Property is documented and protected.

Marshal your resources so that they work in unison. This will help those supporting you see you as communicative and well-organised. Finding startup funding can be very difficult if you are not investor-ready.

Funding your business through high growth can also be challenging.  Before approaching any investor, consider the funding sources available to you. Doing this lets you do your homework and tailor your proposal better. Many sources of funding are available to business owners.

Quotable quotes.

“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”. Warren Buffett

“An investment in knowledge pays the best interest”. Benjamin Franklin