Giant companies do not wake up overnight and decide to buy over a startup or a competitor. They must have done their market analysis to determine the prospects and profitability of the startup. Many are always stupefied as to why big tech companies like Google, Apple, and Microsoft will risk billions of dollars for a business. It is a risk which can be either good or bad. Raising money via private equity or venture capital will quadruple your growth and market shares depending on the funding made available by the investor.
Interestingly, investment in these startups is due to favourable results from certain research works and privileged information which have made them irresistible to international businesses. For example, WhatsApp was productive before it was acquired by Facebook. Now, many of us cannot do without the instant messaging service. Innovation village points you to 5 interesting ways you can position your business to attract millions of Naira.
Accountability
Being accountable for every naira spent in your business it very important whether you desire investors or not. There must be a clear distinction between your personal finance and company finance. You do not spend recklessly because you own the business. This is where auditors come in. At least, you should be able to present an audited account for the previous 3 years. Be honest as much as possible as you can leverage on accountability to nail an investor.
Cut down cost
In the first few years of any business, the cost will be inundating especially in a country like Nigeria where doing business is over the roof. You cannot escape recurring expenditure l
Topnotch leadership
Good and competent leaders are the lifeblood of any organization. They take the pertinent decisions that will make or mar the future of any company. Everything revolves around them. They are expected to recruit the best hands to help nurture the company. Therefore, having qualified executives is invaluable.
Practical and implementable plan for growth
The plan for growth of your startup must be clearly mapped out. It must be clear and uncomplicated. Your numbers must be based on proven facts and should not be falsified. The investors will definitely know if you are presenting them with a farce or unactionable growth plan. It is, therefore, essential to have believable figures and not overtly outrageous plan for growth. Trust investors, they are very thorough as they will not any stone unturned to be certain their monies will not go down the drain. So, you are actually wasting your time if you present bogus numbers.
Hit or exceed your annual budget
Exceeding your annual budget will go a long way in attracting investors. If you have a regular run of breaking even beyond your budget, prospective investors will not miss the chance to take a look at your startup and actually invest. In addition, ensure that you blow the trumpet of your achievements as no one will do this on your behalf.
