Investing in the development of a company with your own money is the dream of many entrepreneurs, but it is not always possible. many times the foreign capital it is the way for a company to develop.
Whether through a angel investor or by someone looking for a business to put their money to use, at certain times the best choice is to accept the company. Do you know how to act when the time comes?
How to trade to attract foreign capital
The first step in seeking foreign capital is to put aside the old notion that it is necessary timed coordinationsays businessman Sergio Arruda, consultant at GCT-Consult.
“The right time is always. In a market like ours, where the interest rate is always an additional barrier, debt is the best way to fund investments, share risks and results,” he adds.
This condition does not depend on the size of the company, it can be a startup or a mature company with a long market history, the consultant emphasizes. The secret lies in the mode of action when buying.
One of the strategies that attracts investors the most, for example, is this merger or acquisition. In this modality, referred to as primary, all investments are for the company, with no budget for the distributors.
The reason is that trust that the main goal is collective and related to it the development of the business, although this does not mean immediate profit for the partners.
Another tip is rely on innovation. After all, why should anyone spend money on your business if it doesn’t do anything different than the competition? Remember to ask yourself this question.
When meeting with investors, it is important that you are ready to present projections are based in numbers, not just assumptions about what the company might offer. In addition to transmitting more security, you show that you know your business like no other.
what not to do
leave everything left to improvisation and not plan. If there’s one common mistake among companies, it’s this one. A good manager must plan growth prospects very well and always maintain tight control over finances. This makes it harder to be negatively surprised.
The problem, Arruda says, is that if the company isn’t prepared when an opportunity arises, miss out on excellent investment opportunities. It is therefore advisable to constantly update the business plan with a view to innovations.