5 Things Investors Look for in Small Businesses

Attracting serious investors is every business owner’s dream.

A true investor is looking for specifics to know that a business is worthwhile for investment. If your business is searching for an investor but doesn’t know where to start, read on to learn 5 things investors look for in businesses.


  1. Proven history of profitability

Investors want to know that they will make a return which is why they will want to see a history of profitability. Direct to consumer lending is a great way to increase profitability, by allowing your customers to buy now and pay later. Financing Your Way has a direct to consumer lending program that helps business owners limit risks and increase profitability.


  1. Trainable management and staff

Great investors can be great mentors. It’s highly likely that an investor will want to share their expertise with management and staff. A trainable team can be an investor’s dream. Test out your team’s ability to take direction with Financing Your Way’s direct to consumer lending consulting services.


  1. Proven history of loan payback

Investors have several options for supporting small business. One option is providing a loan. Before an investor lends money to a company they will want to know the company has a history of making timely payments. Financing Your Way offers short and long-term loans with flexible payback terms making the establishment of loan history simple for business owners.


  1. Ability to keep good records

Potential investors will want to know you are organized. Record keeping or lack thereof can make or break a relationship with a potential investor. The end of the year is a great time to review your current paper and digital filing systems and ensure it is “investor ready.”


  1. Up-to-date tax filings and payment

There’s one group of people you don’t want to make mad. That’s the IRS. Investors won’t touch a company with a tax problem. Get and stay up-to-date with your tax filings and payments if you want a shot at attracting serious investors.


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