Finding The Right Godfather For Your Business’ Financial Needs

The dictionary defines “Godfather” like this: an elderly and responsible person who holds the hand of a child during his baptism and takes the oath of educating him religiously. However, there is another definition for the term “Godfather”. The word also symbolizes someone who is highly influential or holds the most revered position in any organization or movement.

So, if you were to be asked this question as to who would you consider as your Godfather in your business at the time of a financial situation, what would your answer be? In other words, who do you think is the right investor or fund provider for your business needs?

This is indeed a very tough question because it is not easy to find the right solution. In fact, it gets tricky, especially when you have to analyze a lot of factors to narrow down to one or a few persons. With that line of thought, here are few tips to help you find the right investor for your business.

  1. Just as every investor studies a business plan, you as an entrepreneur must analyze the ability of the investor to fund in your proposed plan. There should never come a situation where the investor backs out because of insufficient funds.
  2. Additionally, you must research on the investor’s capability of funding in repeated series of investments. This correctly projects the investor’s capabilities.
  3. Furthermore, a quick glimpse into your investor’s investment portfolio is a good idea, as it throws light on his/her diversification. It is important to get a diversified investor because he/she will be able to manage losses easily.
  4. Most importantly, the person should be like-minded. It does not matter if you and your investor like the color What matters is that whether your investor can see right through your business plan, understand the value the business is creating, and envision your goals in the same manner as you had planned it out.
  5. Another important factor that you need to analyze is your investor’s ability to influence in your target industry, as this will provide favorable situations and open up many interesting opportunities for you in the immediate future.
  6. Moreover, you should be able to come to a quick conclusion whether the investor of your choice fits into your organizational culture well, whether he/she is authoritative or democratic, and what the main intentions of the investor are.