With the pandemic receding and the prospect of savings-rich consumers driving business optimism to a record high, now is the time to shore up your business and get ready for what looks sure to be the roaring twenties. Gaining investment is a fine first step to doing so, but if your business is hunting for angels, it’s crucial you think smart and act fast to improve your valuation and receive even greater seed money in return. Here’s how.
Understand your target Market
Whether your business is being valued on its cost worth (the investment that’s gone into it), current and projected income, or market value, all these are influenced by one fundamental: understanding your customers.
By knowing your target market inside out – their challenges, wants, needs, aspirations, personalities, and more – you can hone your offering and meet their needs, growing your customer base in kind. More customers equals greater profit, which makes you more valuable to investors.
Invest in Processes
There are millions of businesses in the world, but the thing that holds most of them back from big, bright things is often their processes.
If a business operates in an inefficient manner, with few proper processes or far too many, then its growth will be hampered. Instead, analyse the way your company operates, identify areas within the business that are inefficient, the devise ways in which these inefficiencies can be tackled.
This also demonstrates an important thing to investors: scalability. If your processes are slick and can be expanded easily, then your business is less likely to experience growing pains on receipt of the investment. A win-win for both parties!
Gain professional advice
While you may have built your business from the ground up alone, that doesn’t mean you have to navigate the challenging task of boosting your valuation alone. By enlisting the help of a corporate finance specialist, you can gain access to helpful information and experience on how you can best improve your value.
While their assistance will require investment, their insights can give you a competitive edge against your peers, and if you end up receiving a larger valuation, can certainly be worth the money.
When applying for investment, your business must become translucent to potential investors. If you are unable to provide accurate, in-depth information about how every aspect of your business operates, you will scare away any investor worth their salt. Conversely, if your investors do not ask for this information, then you should seriously doubt their credibility.
That means keeping full financial records, as well as records relating to the development of your products and services, your business plan, market research, and more. That way, when the daily questions of would-be investors start appearing in your inbox, you can quickly and confidently respond.