Is Your Business Worth a $100,000 Investment?

July 18, 2013
BY Jon Goldman

Even if you’re not seeking funding and have no plans to sell, you still want your business to be investment-worthy. Here’s why:

An investment-worthy business is an asset. It produces a better product, gives you more freedom and generates more buzz among your followers. If you can’t convince someone that it’s worth it to invest $100,000 in your business, there is something wrong. If your business is not an asset, you’ve got a glorified job.

Here are six strategies to make your business investment-worthy (with the help of Kevin Harrington, an American entrepreneur and business executive who has appeared on the American TV show “Shark Tank”).

Illustrate transformation. Just like the popular before-and-after photos you see for weight-loss products or for acne treatments, you need to be able to illustrate how your product or service makes a transformation.

Show drama in your presentation. Can you visualize your idea? I use what I call the Sharpie test. If you can’t draw it on a piece of paper, then what you are selling will not be crystal clear to potential investors.

Have proof of your concept. Is there research or clinical studies that support the claims that your product or service works? We’ve all heard commercials stating that “four out of five doctors agree” — now you need to have some evidence from those four doctors.

Include testimonials. No one believes the promises they hear on commercials anymore. Therefore, you need a reason to believe. This is where testimonials are so important. They are, in essence, real people and real businesses giving your products and services validation.

Highlight the strengths of your leadership team. Technology notwithstanding, business is still about the people behind the logo. In fact, many investors bet on the jockey.

Make sure your business is scalable. Investors want to see that a business has growth potential. If you’ve already peaked, the value of the business will diminish. Look for ways in which you can re-launch your business to show growth potential.

You don’t need to be an expert sales person if your business is worthy of investor interest. Like those impressive hardwood floors and granite countertops that you put in your home to increase its value, your business can be an asset if you know what would make it appealing to investors. Growth potential, strong leadership, solutions to problems, and a business that gives customers a reason to believe are among the selling points that add value.

Even if your company is not about to be acquired by a corporate giant, you still want your business to be an investor-worthy asset because creating value enhances your brand, and because customers are drawn to something of value.

Jon Goldman is president of Brand Launcher and a board member of Jewish Entrepreneurial Trust (JET). To learn more about JET or to get involved, contact info@jetbaltimore.org.

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