There is an increasing number of entrepreneurs who are looking for investors without really knowing what it is they want to do with the company and what they need the money for. The investors wants to know. It is very difficult to convince anyone to invest in a company if they don’t clearly understand what you are trying to do with it and, overall, if clear doubts are manifested in the objectives you are trying to meet.
The great advantage of the Internet today is that you can test a model using social networks as an examples to see what kind of pull you have before fixing on your objectives. If I want to create an e-business selling precious stones, I can create a group among several social networks -dedicating time to it so that it is totally free- to see how my potential clients react and to measure whether or not it is worth the trouble to create a company for them.
When you are looking for investment, it should clearly be for growth, improved infrastructure or increasing margins. Initial investments, a little ends the test period, are those that need to be financed by the famous FFF (Friends, Fools, and Family) as they are the smallest quantity possible and don’t cost us more than 10% of the company. For the investor, it is also important to know when redemption will be possible (when they will able to sell their shares) and that requires clear planning and understanding for both parts in order that it does not later become a barrier between them.
Translated by Babelic.com
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