An investor is someone who holds an interest in your business and wishes to grant you funds to help grow the business. An investor can be someone who is a silent partner, meaning they will give you the funds and do not want their name mentioned as a part of the business. Some investors may oversee the business, but normally the investor allows the business owner to make all the pertinent decisions about the business.
There are many different reasons a business may need an investor, but the bottom line is the need for extra funding and finances. A business may need an investor to start up. A business may need finances to purchase more inventories, or to upgrade equipment. A business may need extra finances to hire employees in order to help the business to grow.
In order for a business to attract an investor, a few things must be in place. First, the business needs to be viable. You need to show proof of this viability (if it is a start up) and you need to show proof of its growth if it is an established business. But the best thing an investor looks for in a potential business investment is a solid business plan.
Make sure the business plan includes all the details of venture capital. It would be wise to create a business plan that is specifically tailored to your particular business rather than a general business plan form. A solid business plan that conforms to your particular business with all the ins and outs will impress your potential investor.
The business plan must be clear on all points, especially the statement of purpose. The statement of purpose should be short and sweet and should outline, within a paragraph, the nature and intent of the business. It should list the final goals, such as "number one seller of X products by three years," etc.
A business investor will want to see all the biographical details of your business team. Showcase each member by listing their education and their work experience. Sometimes if an investor sees a solid team in place, they will be more willing to invest.
The business plan needs to list every single piece of inventory and equipment. Not only should they be listed, but explain what they do, how they are offered. List the price to purchase wholesale as well as the retail pricing. Make these details in a sentence or two, especially if the inventory list is lengthy.
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