The Benefits of Bringing Investors into Your Business

Puzzle, Money, Business, Finance

We may wish or like to imagine that we can go it alone or try to do everything ourselves, but unfortunately that is not always the case. Sometimes we need a helping hand. This may not always be in a financial sense, though on many occasions that is the case. Bringing outside investment into you company- your baby, may be a difficult time. However this need not be the case.

There are a multitude of benefits when it comes to welcoming a new investor into the fold. Some of these benefits we shall try to outline in an effort to make you feel more comfortable with giving away at least a small part of your business.

Knowledge is Power

As we mentioned, on many occasions the motivation for attracting an outside investor may be to introduce capital in order to grow the business. This need not always be the case, quite the opposite in fact. Anyone with experience of pitching their business be it to a friend, venture capitalist or even on TV shows such as Shark Tank also knows the value of knowledge and connections that a certain investor can bring to the table. This could be in terms of product/market knowledge, access to areas of the market which are otherwise restricted, proven sales channels or connections in the industry to help advance a business. All of these things can be even more valuable than a case investment in many instances.

Many Hands Make Light Work

Arrows, Growth Hacking, Profit, Business

It may be cliché to say in some cases, however most of these expressions turn out to be true. An extra investor who is willing to pitch in on the workload can be of tremendous value to a company. This could free up time for you to focus on any number of business aspects from new product development to marketing. Understanding that many new and innovative businesses actually fail by trying to do too many things at once and losing focus is key. Those extra set of eyes looking over your work, while we don’t often enjoy it, can offer a unique insight in solving problems we previously struggled to overcome.

It’s everywhere

Quite simply, investment is essential and also the driving force behind most huge corporations. Anything from Berkshire Hathaway on one end of the spectrum, building a portfolio inclusive of huge MNCs and other blue chip stocks to your local mom and pop store who take on their nephew’s investment to ease into an early retirement. If you plan to grow and expand your business or run it for a long enough time to scale generations then you will experience outside investment of some sort.

Some people, especially those who lack confidence or trust in others may be apprehensive regarding outside investment but the fact is that this is a key point of doing business and a perfectly healthy and often time’s beneficial route for a business to take when raising capital.