Understand Investors by putting Yourselves in Their Shoes

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Actually this is not rocket science.

If you want to know whether your business is deserving of investors’ funding, just ask yourself one simple question.

If this business you are having belongs to someone else and if they come to you for investment. Would you invest?

Be totally honest.

Please don’t tell investors that your projects would earn profit and returns for the investors, because investors meet with hundreds of projects that say the same thing all year long.

Then the only reason why an astute investor would invest is by consideration of the business model. What often makes a business investible is in the underlying assumptions and not whether it is profitable or not, since we will never know for sure (though we can hope that it would be profitable).

Since in the end, we would still not know whether the investments would pan out profitably then the only logical decision to invest must be based on what you are going to achieve whether the business turns out profitable or not.

Let me give 2 examples in the printing industry.

Example A

Raise Investment to Buy S$ 500,000 printer to serve printing needs in asia.
Selling printing services

Example B

Raise Investment to Buy S$ 500,000 printer to serve printing needs in asia.
Selling printing services.
Selling design services
Selling consulting services on market to target
Building a customers’ database for purposes of future marketing purposes
Looking out for investment to make in case print media is not demanded anymore.

All other things being equal, which one would you invest in? Putting yourself in the shoes in the investors.

Both examples may well still fail. However, assuming you have S$ 500,000 to invest. Which one would you choose?

It is a no brainer that Example B would be invested.

Somehow when businesses raise funding the assumption is that investors need to worry about your problems. Well, that is a bonus, but investors are primarily interested in their financial gains first.

If you happen to solve your problems with their money. Well, great.

If without the investors’ money your problem cannot be solved, this is your wake up call. Nobody owns you a living.

Money is attracted to you because you CAN solve money-generating problems. Money is NOT attracted to you because you HAVE a problem to solve.

None of investors’ concerns.

To know more about your own fund raising, submit your interest at;

send me the report

Raymond Ng,
Director, Candle Capital Pte Ltd

 
 
 
 
 
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