3 Ways to Prepare for an Investment


3 Ways to Prepare for an Investment

If you need an investment, this article is for you. Seeking an investment for your company can be exciting. You are confident that the capital from the investment will help scale your business. You are also excited about future products and services that might generate more revenue over time. And of course, you are ready to roll up your sleeves and work twice as hard because you know that an investment is an added responsibility.

Preferably, you want an investment partner who works just as hard as you do, and who gets just as excited (if not more) as you do about the trajectory of your business. In light of this, it is important to know the two main types of investment partnerships: Strategic Partnerships and Financial Partnerships.

Strategic partnerships
are made with experts who have extensive knowledge about the industry in which you do business. They can provide you with invaluable insights and advice which can save you time and money. Strategic partners know "who's who" in their respective field. As an entrepreneur, you may benefit from a strategic partnership if you wish to collapse time, avoid common pitfalls, and fast-track your way to your goals and objectives. You and your strategic partner complement one another. In short, a strategic partner is like a co-captain in your entrepreneur-"ship".

Financial partnerships help you fast-track your way to your goals with financial “fuel”. Financial partners have well-established relationships with banks, investment firms, and lenders. Some also have data analytics which you can use to focus your marketing and sales effort. As an entrepreneur, you may benefit from a financial partnership if you already know how to reach your goals. In short, a financial partner mostly supports your business financially. You are the captain of your entrepreneur-"ship".


 Whether you are seeking a strategic partnership, a financial partnership (or a combination of the two), it is important to prepare. Preparation starts long before you begin making phone calls asking for an investment. Ideally, your preparation is embedded in your day-to-day activities. Being organized and knowing your numbers is the best way to prepare for an investment. 

3 Ways You Can Prepare for an Investment

 1. Know Your Numbers

If you've ever seen an episode of Shark Tank or Dragon's Den, you may realize that investors are laser-focused on the return of their capital. It is not unlikely for an entrepreneur to share a compelling story, perform a song & dance, and ask for an investment simply to be told "no". Investors refuse to invest when they are unclear about the return of their investment (ROI). Investors want to understand every aspect of your company's finances. You can expect your business revenue, cost, and profit to be scrutinized. Lucky for you, when you have a great bookkeeper on your team, you will know your numbers. Contact The Number Fairy to learn more about our bookkeeping and financial reporting services.

 2. Ask a Consultant

One lesson all entrepreneurs should adopt from industry leaders is to ask a consultant. Partner with a consultant at least once a year as a second set of eyes and ears. Some entrepreneurs meet with their consultant on a quarterly basis just to exchange ideas. You decide what is right for you, your budget, and your business. If your business is highly seasonal, an annual consultation may be sufficient. On the other hand, if your sales fluctuate year-round, a quarterly consultation may be reasonable. How often you meet with your consultant is partly determined by his or her expertise and experience level. Consultants are as numerous as grains of sand on the beach. Many have varying backgrounds and specialties, so do your due diligence to make sure their knowledge and experience match your needs. Additionally, you may consider working with a consultant who is well-connected in a network of experts. This benefits you because it gives you further reach into having your goals achieved.

The Number Fairy offers consulting services for small to mid-size companies. We are experts at solving complex accounting problems and streamlining internal protocols. Here are a couple of our accomplishments:

  • Fashion Industry
    • An international fashion brand needed a check-and-balance system for their inventory. Products were moving fast, and executives wanted to verify the accuracy of the computerized systems. We recovered over $350,000 USD in unbilled merchandise in one business day. Our inventory-recovery system added value to the fashion corporation which attracted new investors.
  • 501(c)(3) Non-Profit Organization 
    • A large non-profit organization needed a better way to manage donations and outside funding. We streamlined protocols in their accounting department which maximized efficiency. Our system implementations optimized processes to ensure that funding would be available for services and programs for their community.

If you want to learn a better way to streamline your accounting functions, then contact us.

3. Protect Your Assets Early

Investors need assurance that their capital will be safe. Have conversations with insurance agents, attorneys, and CPAs about ways to protect your business. We are not insurance agents, attorneys, or CPAs. However, we do belong to a robust network of experts in those fields. You may contact us, and we will gladly put you in touch with one of our trusted partners.

We hope this blog post adds clarity to your entrepreneurial journey.

If you would like to schedule a complimentary consultation with us, please click here.

Have an amazing day!


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