Page 191 - Winning The Credit Game Bundle (CK Patrick)

real goals are for your business. Some business owners are moti-
vated by building as much personal and generational wealth as
possible; others are motivated by something else entirely.
After a company is already fairly large and successful, invest-
ments from other types of entities become more likely . Many
different types of investors exist who seek to invest in companies
at different stages of their growth and in different situations .
Larger businesses or business owners may seek to buy your
company from you for a large amount of money , or to buy a
stake in your company as a first step toward acquisition . Busi-
nesses whose cash flow and growth have stabilized may even “
go public” and be traded on the stock market where the general
public can invest by buying shares.
If you decide you want to seek investments and guidance
from venture capitalists , how do you demonstrate to these
investors that your business is an excellent prospect to invest in?
Venture capital companies look for companies with big
potential for high ROI—return on investment—within a defined
“investment horizon ,” or time limit, such as the 7-10 years
mentioned above. This means that venture capitalists will be
interested in many of the items you compiled for your business
plan and financial projections when applying for a loan. They
will want to know things like how you will use their money ,
what ROI you expect on that money , and how much you see
your company’s total cash flow and value growth over the next 7
-10 years if you receive this funding.
Unlike most lenders , venture capitalists may also want the
right and responsibility of seeking out opportunities for financial
and business growth that you haven’t spotted yet, such as new
business practices, target audiences, marketing practices, or tech-
nologies. This is a valuable service for growth-minded business
owners, but following these recommendations may also become
a requirement after a venture capital fund has invested in your
business.
The following is a list of things that angel investors and
venture capitalists look for in their companies. Following these

179