Investors

Considering external investment is important for every business, as it can provide a means to innovate, develop and grow. There are many advantages to having investment coming into your company, and it’s not just about providing you with a strong channel of funding.

From monetary to non-monetary advantages, this blog looks at the different ways an investor could benefit your business.

Monetary benefits

Overcoming financial obstacles

When it comes to monetary benefits of investors, a first advantage of having someone invest in your company is that they can help you overcome financial obstacles to develop and grow as a business. This could include getting a loan approved by a bank. While banks are particular about things like credit ratings and savings, investors can be more prepared to take risks. This means they might choose to overlook things like financial savings, in favour of clever ideas and the potential they think a business has. That’s not to say you won’t have to present your case convincingly and demonstrate real potential. The best investors don’t invest lightly.

Taking away the pressure to repay

As an investment isn’t classed as a loan, an investor usually won’t restrict you to the rules of a loan. This means that you’re not usually held to tight deadlines and upfront repayments, with interest added on top. As a result, this can take the pressure off you having to make set repayments, allowing you to focus on your business instead.

Non-monetary benefits

Bringing you expertise

When it comes to non-monetary benefits, a key factor is that an investor can bring valuable expertise to your business.  Finding someone who has taken a similar path to you in business can be a valuable asset.  Amongst other things, you can learn from their advice, business knowledge and experience. You can also learn from the mistakes they’ve made, helping you to avoid you making them yourself. This can improve your chances of achieving long-term success in running and developing your business

Giving you connections

The right connections can give you what you need to develop your business and make it a success. And an investor can put you in touch with such people. Their past success in business is likely to have led to a collection of strong contacts, some of which could be a benefit to you.

Their decision to invest in your business can also show how much they believe in your company and want it to be a success, which makes them more likely to be happy to pass on some of their top contacts to you for you to meet and build business relationships with. This could include suppliers or manufacturers who can help streamline your supply chain, consultants to help you launch and market your latest products, or service providers to fill specific skill and talent gaps.

Other business benefits investors can bring

Motivating and inspiring – Working with an investor, who has achieved great things in their career, can inspire and motivate you to follow in their footsteps and do the same.

Improving stakeholder confidence – If it’s known in your sector that your business has attracted an investor, it can look good to your clients and customers, giving them confidence in your company.

Providing moral support – As well as supporting you with funding for your business, an investor can provide you with the moral support to push forward, build on your progress, and achieve your goals.

Experts to help support and develop your business

Investors can bring many benefits to your business, from monetary benefits, like financial support, to non-monetary benefits, like providing business expertise to develop to your company.