If your main goal is to interest an investor, you should clearly imagine his “portrait”. Therefore, you should start with determining the groups of recipients, who may be interested in your project. To do this you need to understand at what stage of development your business is: the origin, formation, growth, maturity or decline. It is natural that investors, such as Bedrock Energy Development Denver, react differently to the proposal of investing in companies at different stages of development.
The owner usually has only ideas, patents or single product samples at the origin stage of business. There are the initiators of the project, but management has not been formed yet, and business processes are not established. Outside investors at this stage can only be relatives, friends or individuals, who have experience in this industry and inclined to risky investments.
The company, which is in its infancy, has already established output or begun to provide services, but its activity is still unprofitable, business processes are not fully worked out, and the management team is being formed. This stage business may be financed not only by friends and individuals, but by venture funds as well.
The company starts to be stronger at the stage of early growth. It takes a part of the market and may even gain a small profit. The company has a substantial interest for investors, who offer direct risky financing, venture capital and private equity funds.
At the stage of business expansion (rapid growth) the volume of transactions increases and stable profit appears. The company holds a strong position in the market; business processes are organized and can be extrapolated to new projects and markets. Institutional investors, such as banks and funds can be interested in the company at this stage of development.
The company that is in the stage of maturity is a well-managed, profitable and fast growing business structure, which may have already become one of the industry leaders. Its asset has a highly qualified management and proven business processes, brands and solid market share. At this stage the company can do public offering, which will attract institutional investors, including pension funds.
It sometimes happens that a company, which is at an early stage of development, has some other successful business. In this case it may interest investors not from its group. For example, if the company opens its first supermarket, but it already has a wholesale basis, then it becomes much easier to find an investor.