All of the discussion about valuation in the last section has probably left you wondering how investors will view your business. This is an important question to answer when you’re developing your capital raise strategy. If you know what the perceived risks and opportunities are for your business, it will help you better prepare for the rest of the process. You’ll be able to better highlight the positive attributes of your company and you may even have time to mitigate some of the risks before you launch a process.
To understand your business through an investor’s lens, you need to look at each attribute of your business and assess the risks and opportunities. We encourage you to reference this post on what makes an attractive investment opportunity as it’s a good starting point for viewing the different components of your business through an investor’s lens.
It’s incredibly challenging to look at your business with unbiased eyes. Your business is your baby, and you’ve been living in the day to day for too long to approach an analysis with an unbiased perspective. We recommend you seek a trusted advisor or third party to help you do this.