“Here’s a quick review of items you should expect business
investors to look into beyond their analysis of the t https://npfinancials.com.au/financial
statements…”
Let’s say you have spent a year seeking an investor to invest in
your business venture; you spent considerable time pulling your
business plan together, contacting potential investors, making
management presentations, and now all you have to do is get past
the investor’s due diligence.
*** What Exactly Should You Expect? ***
Skepticism.
Business investors want to be sure there are no skeletons in the
closet and that your venture is not the next Madison Priest
“black box technology”.
Priest’s famous black box was a revolutionary technology that
claimed to allow ordinary phone lines to transmit data into
people’s homes at unprecedented rates – rates faster than fiber
optics. By staging impressive demonstrations, Priest convinced
private business investors and seasoned companies, such as
Blockbuster and Intel, to invest money in his venture. In the
end, Priest’s ‘magic box’ turned out to be nothing but a
high-tech hoax.
*** Four Important Areas Business Investors Will Hone In On… ***
Finance, management, manufacturing, and marketing are four areas
of concern to most business investors. Specifically, these
concerns can be segmented as follows:
1) Finance
* Cash. Cash is king. It’s the lifeblood of all businesses –
start-up or on-going businesses. Business investors know this.
They will spend the time understanding your cash flow assumptions
and, if you’re an existing business, they’ll analyze your cash
management practices. Poor cash management or shaky cash flow
projections are immediate red flags.