What You Need to Know Before Investing in a Business

Today, I dive into crucial considerations for investing in businesses, applicable whether you’re an investor or a business owner seeking capital. Drawing from a recent conversation with a friend receiving numerous business proposals and pitch decks, I created a comprehensive checklist of factors to evaluate.

I emphasize understanding financials, team management, unique expertise, profit management, and cash flow. Additionally, I explore the importance of knowing investment time horizons, exit plans, and your rights as an investor. If you’re looking to invest wisely or attract investors, this episode is packed with invaluable insights. Listen in to arm yourself with knowledge for making informed investment decisions and ensuring your capital works effectively for you.

 

What You'll hear in this episode:

[1:55] Key Questions to Ask Potential Investments

[5:55] Understanding Financials and Cash Flow

[6:45] The Importance of Knowing Where Your Money Goes

[8:35] Investor Rights and Share Classes

[11:10]  Evaluating Business Projections and Exit Plans

[15:25]  Creative Investment Structures

 

If you like this episode, check out:

Must-haves for an Investor Pitch Deck

Using Your Money Story to Grow with Bob Wheeler

Adopting an Investor Mindset with Tess Waresmith

 

Want to learn more so you can earn more? 

 

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