One potential way to finance your small business’ growth is to connect with a venture capitalist, someone who can not only provide working capital for the company but also business advice and expertise. While having interested investors can be exciting, it is important to only partner with the right venture capitalist. Most investors will want to know about your business plan, your projections for growth, your profits and your margins. But the right investor will also want to dig deeper. Here’s what a good venture capitalist will want to know about your firm.
The right investor will want to know why and how you started your business. While the numbers are important, the passion you have for the product or service will tell the venture capitalist plenty about the direction of your company. Investors will want to know all about your level of commitment.
Your Leadership Skills
Even if you are passionate about your company, venture capitalists will want to know if you can lead it and inspire others to work hard for your cause. They will also want to know if you can delegate when necessary, allowing others to help shoulder the weight of a growing firm. Investors will want to see that you have a system in place that will allow the small business to keep running if you are ever unable to be there.
Putting together the right mix of employees is an essential ingredient to having a successful company. Venture capitalists will want to know if you have the business savvy to hire the right people and the guts to fire the wrong people when required. The dynamics of your team should be a big concern for a potential investor since it can make or break a small business.
If you find an investor interested in looking beyond just the numbers, one who wants to understand the people and process behind the product, you’ll know you are on the right track.