I’ve spoken before about increasing the value drivers within your business, which means focusing on those things that will maximise the value of your business as a saleable asset.

 

Being ‘investment’ ready is about being able to present this value to potential investors in a way that is common business practice. The better-presented your business assets, value and operations are, the more prepared you will be to discuss opportunities with potential investors or acquirers. When we talk about ‘investment’ we’re typically talking about venture capital, or equity investors.

 

Our investment ready checklist is quite long, and thorough, but for now, here are 3 very important steps from the bigger checklist to get you started:

 

You need to be able to identify the management team, their core competencies and experience they bring to the business.

 

What specific, relevant experience have they had in the past, and are they capable of both managing day to day as well as implementing the strategic business plan.

 

You need to have up to date information in their files including CVs, references and other relevant information.

 

You need to document and be able to talk clearly about the your business, products, services, and how you make money.

 

I can’t tell you how many times I’ve heard people describe their businesses, particularly in technology and other technical sectors, in ways that only they could understand! Even if you are in a technical business, you need to be able to explain the business application of your products and services, not necessarily how the software works! But, you would need to explain the advantages of the software platform or architecture, for example, to help explain your competitive advantage.

 

Remember, what is it that your customers buy (which may be a different perceived thing form what you think you are selling them)?

 

For all of you who have read my ‘Value Drivers’ report, refer to the part about the ‘Business Analyst Question’. This will walk you through how you need to be able to explain your business model and how it makes money.

 

 

Start documenting the answers to these questions – it will help you move toward being ‘investment ready’, and it may also bring up some interesting insights for you about your business in the process!