Where are the great deals? - Len McDowall
Even in the current market turmoil, there is still a lack of great deals, not a shortage of capital.
The public markets have all but evaporated for the moment, however the “private equity” sector is still in the market with, collectively, billions of dollars to invest. All you need is a great deal!
However these private investors are not looking for great ideas. They are looking for substantial businesses with great future growth prospects.
Getting a private equity investor to invest in your business means more than the money. Its confirmation that you have a sound, sustainable business model.
Your sustainable business model should include an experienced management team with a sound understanding of the industry they are in, together with a realistic plan which includes achievable financial forecasts.
You must be able to demonstrate great growth potentail and show that you have a comprehensive understanding of the customer.
Approaching investors unprepared is probably the single most common reason why entreprenuers fail to attract capital. If your proposal does not include all of the above, chances are you won’t get past first base.
However, once you learn how to make your business “investor ready” and you succeed in attracting an investor the first time, going for subsequent rounds of funding, or funding a new venture becomes much easier.