Five factors that will help interest an investor — Vitaly Gorovoy, founder of InSoft Partners
The purpose of the business depends on the founder’s personality and mentality. The most common motives are the desire to have a business that will feed for a lifetime, start projects in series, start new partnerships or build a company to sell it at the highest price in the future.
In any case, every owner wants a stable, growing and profitable business. Vitaly Gorovoy, the founder of InSoft Partners, shared his vision of increasing the company’s value in his MC.Today column. InSoft Partners together with UFuture are developing ITernal, a collaborative group of companies specializing in IT outsourcing.
An innovative product with a thoughtful business model
If you have an entirely new approach to the market, a new business model or an updated product, your price will only increase. An example is Uber, which has become an innovative solution for drivers who can take orders in their free time and for passengers who now don’t need to call anywhere and use only cash to pay for services.
If there is a lot of competition in the market, the business’s attractiveness will be significantly lower, which, in turn, means worse credit, investment and partnership prospects. Therefore, you need to find your own blue ocean — a part of the market that didn’t exist before or it isn’t yet highly developed.
If your company has a share of a limited market that is not growing, it will be challenging for you to scale. Ease of scaling is essential for an investor because if your market doesn’t have growth prospects, then the business is not attractive for financing.
Team and partnership
If you have a strong team, it is valuable. Your team is one of the main criteria used during buying a business or merging companies. Besides, suppose your equity partners are experienced top managers or entrepreneurs who make decisions and influence the company’s development, it is another plus for the business’s value.
Transparency of processes
If your company has transparent and automated processes, it is easier for you to hire new people, and the business no longer depends on specific employees. It contributes to a clear flow of documents, affecting the investor’s favourable decision on financing.
For more tips on how to increase capacity and increase business value, read via the link.