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What questions should I ask potential investors?

On Behalf of | Mar 10, 2017 | Business Start-Ups

Even the best businesses need a little help sometimes, which often leads to a search for the right investors. As a Manhattan entrepreneur, you may be wondering just how to find those investors best suited to your business and its needs. By asking the right questions, you can sift through candidates until you land on the perfect investing match.

Forbes recommends a range of questions for potential investors that will help you determine their suitability. For instance, you may be wondering where your business fits in with an investor’s larger portfolio. In general, working with an investor who also has stakes in many similar businesses can cause quite a bit of conflict in the future. While it’s a good idea to ask this question in person, you can do some additional research on your own for a better perspective.

You may also have queries regarding a candidate’s investing timeline. A paucity of investments in the last three months or so could point to insufficient capital, which unfortunately doesn’t stop some investors from considering possible opportunities. Seeing investors with no real ability to do business can eat up a lot of precious time, which is a why a bit of online research is highly recommended.

Lastly, you should try to gain some insight into the type of decision-making process an investor plans to utilize. Timeliness is essential in most business matters, so if an investor is unwilling or unable to make a decision in a timely manner they might not be a good fit for your needs. It’s better to learn that an investor is not an ideal match at the outset to prevent damaging clashes from occurring at a later date.

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