What can an entrepreneur expect from an investor?
April 23, 2017
Brown Mark (73 articles)

What can an entrepreneur expect from an investor?

If you are looking to bring a brand-new business into the world and are riding high on great ideas but are a little low in the cash department, the odds are pretty good that you’re going to look for in investor to help bring your entrepreneurial ideas to life – and hopefully make the both of you fabulously wealthy!

At the same time, it’s important to know that a lot of entrepreneurs get into the relationship with different investors without really understanding the dynamics of this critical business relationship. A partnership in every sense of the word (but meaning something completely different to each unique investment opportunity), you’ll need to make sure you are crystal clear about what you can expect from an investor as an entrepreneur – and make sure that your investors are aware of this relationship dynamic as well.

Hopefully the information in this quick guide is able to better help you in this department!

Keep your expectations low

As an entrepreneur taking on an investor, it’s important that you do everything in your level best to try and keep your expectations from what you may receive from an investor (outside of the cold, hard cash they are providing you) as low as humanly possible.

The overwhelming majority of investors out there are much more interested in providing money than they are providing time, advice, or networking connections. Once you realize this right off the bat – regardless of what they may have told you during the investment pitch – the better off you are and the more successfully you can navigate the new landscape.

Don’t be shy about taking proactive steps

At the exact same time, this doesn’t mean that the investors you are partnering up with aren’t at all interested in giving you insight, information, and access to different people or resources if it means that you will be able to provide a much better return on their investment.

Just recognize, realize, and appreciate that your investors aren’t likely watching over your shoulder every step of the way, preparing to dive in and offer you help when you need it most if you aren’t proactive about requesting this helped when you actually require it.

A quick email, a quick phone call, or just a five-minute meeting – always frame it this way and then stick to them lightning fast schedule – will usually always be welcome from investors, especially if it (positively) impacts their bottom line.

Get crystal clear about expectations, roles, and communication up front

Even though you are looking to take on an investor, you as the entrepreneur are always in the driver’s seat, always in control of your business, and always have the opportunity to say “no thank you” and look for different investors – until you sign on the dotted line and accept the cash in return for whatever stake you have exchanged for it.

Remember this before you get into deep with different investors. You get to set crystal clear expectations, determine roles, and outline the steps for crystal clear communication up front – giving you a lot of leverage that you need to take advantage of while you are able to.

About the Author
Morris Edwards
Singapore Company Incorporation Consultants Pte Ltd

Address: 10 Anson Road International Plaza #27-15 Singapore 079903

Telephone: +65 66531211

E-mail: info@companyregistrationinsingapore.com.sg

Website: www.companyregistrationinsingapore.com.sg


Brown Mark

Brown Mark