Businesses who are not Investment Ready fare poorly in obtaining funding because they are asking the investor to fund something that has little or no possibility of a return for them.
Investors continue to receive many investment proposals containing business ideas that have intuitive merit, yet the proposal cannot be invested in because the business is not Investment Ready (or the Business Owner, CEO or Entrepreneur promoting the business is not Investor Ready, or both). As a result these Owners, Executives and Entrepreneurs waste time and effort, suffer lost opportunity and financial loss, and potentially suffer reputation damage.
Your business will be Investment Ready when:
The founders and existing shareholders share the same medium to long term objectives as an incoming investor is likely to have
The people involved in the management of the business are of a demonstrably high calibre and have extensive industry knowledge and expertise
The business has recruited advisors and consultants to fill the gaps in expertise, whether corporate or operational
The purpose of the business and/or the problem it solves for customers is crystal clear
The product and/or service offering is well defined and scalable, or the business idea is well developed and has been validated
The target market is clearly delineated, and ideally large and growing
Competitors are identified and a sustainable competitive advantage has been developed, and preferably there are high barriers to entry for new market entrants
Management has a deep deep deep understanding of the existing and prospective customers
A distribution network, sales strategy and customer acquisition plan have been developed (and preferably validated)
The business knows how it is going to get its marketing message to its prospective customers
Customers have demonstrated that they are willing to pay enough to generate good margins
The resources required to deliver the products and services have been identified and ideally assembled
Strong and differentiating IP is owned by the business, and is reasonably commercially protected
Costs of developing and delivering the product and/or service have been budgeted, and estimates prepared of the sales and revenues that might flow
The business structure is suitable for accepting new investors
The business has a level of corporate governance that is appropriate to the size and nature of the business and sufficient to both protect and grow an investors funds
The share register and various corporate registers are up to date and all information and documents relating to prior issues of securities are at hand
The business has determined its future funding needs, and also has a projected investment return
The business has determined what its exit opportunities are, in detail
A business plan has been documented, that is clear and concise, containing the elements above, including both strategies and tactics to achieve your various business objectives
Contact us at Intellix if you would like to get your business Investment Ready!