Well you’ve been waiting for it, and finally it’s here … Shark Week ! No not the Discovery Channel’s event that celebrates the big fish in the ocean, but the day your small business goes in front of a potential investor.
What are some things you as a small business owner should consider when seeking an investor. I always tell my clients to put yourself in the shoes of the investor, what types of assurances would you want? Here are a few items to consider before seeking a potential investor.
- Are you willing to give up a substantial portion & control of your business? They are called Sharks for a reason, they want to take a bite out of your business, and for many that is difficult trade-off to make.
- Does your business have a high profit margin? Sharks want to make sure they are going to make money, if not they could always just put their money into some other investment.
- Can you sell? A Shark wants to know that the business owner can sell their product. Do you have a proven track record of sales, is there a history showing people actually want your product / service?
- Are you realistic? Are the expectations you have for this business realistic, can you meet them?
- Are you committed? Have you made a full-time commitment to running this business, or is this just a half-hearted commitment, or passing fancy?
Once you consider these questions you then might be ready to swim with the Sharks! If you need assistance in developing your small business, contact us here at The University of Scranton Small Business Development Center.
Keith D. Yurgosky
The University of Scranton
Small Business Development Center
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