Investors offer a great contribution to your company or any business. The monetary investment offered by any potential investor is a big help in funding your business venture. However, finding an investment partner is not easy. Investing is risky. This is the same when looking for a potential investment partner.
When choosing and considering an investment partner, asking the following questions can help you:
How do you decide where and who to invest?
Knowing your potential investor’s reason as to why he/she decides to invest in a particular project rather than the others will tell you a lot about the investor. It also tells something about what they prioritize in a company. It can tell whether they want a strong team, a bankable idea, or a sharp business instinct.
How do you judge your success as an investor?
The investor’s view of their success greatly helps set a tone for their future hopes for you.
What has been your most disappointing venture? Why?
It’s important to know how your potential investor views disappointment. It is equally important as to how they view success.
What do you expect as a return on your investment?
Asking this question allows you to settle expectations about the projected return on investment with your potential investor. It will avoid misunderstandings that can occur later.
How involved are you after investing?
There are different types of partnerships. That is why this question is important. It will help you know if your potential investor can provide the support you need and are looking for.
What are your expectations for this partnership?
Going straight to the point with your potential investor can yield effective answers. It is always helpful and important to determine if your vision aligns with your potential investor’s vision. The last thing you want to happen is to argue over a problem that is detrimental to the future of the company or business.
These questions will help you find the best investment partner for you. It is important that you and your investment partner have a common goal and a common understanding of the partnership. Harmony and understanding are important in every partnership.