Looking for Investors? Top 5 attributes THEY are looking for!
Recently, I had the wonderful opportunity to attend Harrisonburg’s VALLEY TechCon.18. The venue was composed of several blocked sessions with a selection of presentations each guest could attend. One of those presentations was titled: “Resources for Building a Tech Company in the Valley(s)” I had to investigate further! The session included several keynote speakers; however, Bob Smith, Director of Mason Small Business Development Center at George Mason University, gave some highly informative and powerful tips on how to best attract the attention of potential investors. He told the audience that the following FIVE things are necessary:
A validated business plan
A team
A product ready to take to market
Sales
A willingness to form a partnership
Let’s look at each of these individually:
A Validated Business Plan
We were told that spreadsheets with data which were conceived through probability and other traditional extrapolation methods were simply not enough. In addition, he mentioned that if your idea was great, but your business plan’s core was flawed, you will probably scare investors away. The example he gave included an idea one of his confidants had, that, had all the preparation been done, would have required several years, and hundreds of thousands of dollars invested, prior to any real-world realization, or practical use. As you can imagine, that idea was later scrapped.
A Team
This item was self-explanatory, so I thought. As it turns out, having other individuals in accord with your vision was not all he had to say. His definition of a team was a well-organized unit that could perform all the pertinent tasks to build, maintain, and grow the company. His team’s definition included being well-versed in the business’s goals, ethics, and operations.
A product ready to take to market
WHAT!? I thought the whole point of seeking investors was to aid in the development of a product that would eventually be taken to market. As it turns out, Bob Smith informed us that times have changed. During this shift in the sands of time, it has now become accustomed that potential investors, these high-end stakeholders, opt to support businesses that already have a product. This aligns with the concept that tangibility is the true selling point.
Sales
Being able to present sales data to potential investors is beyond powerful. This goes one step further than simply having a market -ready product.
A willingness to form a Partnership
According to Bob Smith, investors want to form partnerships. Within the world of investors, the idea of getting a “cut,” and, getting out, is antiquated. There are several ways these partnerships can be formed.
And there you have it. These are the five things investors are looking for. He encouraged us not to be discouraged after hearing his advice. In fact, Bob Smith offers a class that challenges each participant to flesh out his, or her, business. Within this class, via simulations and scenarios, each participant is challenged to deliver in each of these five areas. If interested, I encourage everyone to seek further information on this opportunity.
If you are in the market for investors, I suggest you work with Innovative Software Lab. Their solution prepares you to receive seed funding to develop your minimal viable product (MVP).