Investors understand profits

Let’s be frank, many investors don’t necessarily understand business well.

Some are investing other people’s money. Some got lucky in real estate. Some did well in their own industry but have no clue about other industry sectors.

You may be selling a hi-tech business model which they have no clue about.

However, before you exclude investors who don’t get you, you need to understand your investor’s motives – profit.

Investors want to cash out within a few years, and they would like to take out more money than they invested. Pretty obvious really.

So, when selling your business, sell the profit they can make, and find an investor who understands your business model to explain that they are comfortable with the business – kind of like a translator.

Don’t expect your investors to “get’ your genius idea. Rely on their curiosity, rely on their willingness to back an interesting idea, rely on their willingness to back an individual or team with the right attitude, but most of all, rely on them wanting to make a profit.