A business investor who islooking
to invest capital in a business needs to examine the proposal very carefully. After
all, no investor wants to lose out on capital. While considering whether to
invest capital in a new business, the investor needs to read the business
plan carefully. The investor needs to analyze the business plan to determine if
the concept for the business is novel and whether it stands a fair chance of becoming
successful.
A business investor also needs to base
his or her decision to invest capital on his or her impression of the entrepreneur.
The entrepreneur of a new business needs to be committed to it and do all
that it takes to keep the business running. The business investor needs to see such
commitment from the
entrepreneur before investing in the proposal.
A business investor who does not have a very good idea about a particular industry
should send the business proposal out to an expert for opinions. This can help the
investor decide on whether or not to provide startup
capital for the business.
Of course, the investor needs to review the financial section of the business plan
to ensure that the outcome of the business is profitable. Most business investors
are aware of financial tools and will be able to determine if the figures are accurate
or exaggerated. Most business investors prefer to invest start up capital in ventures
that have been able to attract the talent of a strong management team.
Venture capitalists and angel investors also expect to have details of all
the financers of the project including in the business proposal.
An
entrepreneur needs to put together an impressive business plan before approaching
an investor for startup capital. There are several investors, some of whom specialize
in funding industry specific projects. An entrepreneur needs to find such a business
investor for his or her project. Most times, the deciding factor for the business
investor is the uniqueness of the plan. An
entrepreneur needs to be certain to highlight salient features of the business
plan in the proposal.
A business investor needs to consider different aspects of the business proposal
and determine if it is worth investing in and whether it will make a profit. Even
if the business investor is a friend or
a family, the decision should be made on the basis of the business plan.