The importance of investors in a business
In a business, the word investor is widely spread. Who is a business investor and what are they doing for your business? A business investor is a firm or person who provides resources or buys equity with the expectation of financial returns. This is achieved by easing financial risks at the initial start-up phase.
The importance of a business investor
1
Allocation of capital
Why businesses often fail is due to the inability to anticipate sufficient funds and that’s why investors are ready to take more risk for a rewarding and flexible opportunity for financial assistance, so the business can focus on long term success of the business without being worried of cash flow in the short-term. Investors are also for partial equity ownership in your business
2
Networking
Investors are able to connect with people who can accelerate your firm because connections are golden. With the right investors, they can put in consultants or service providers who fit in skills and talent gaps that can help your business grow.
3
Reputation
An investor’s reputation in an industry is a green light of how efficient he or she is a team builder and the number of opportunities he or she can bring into the business because you can easily tell if they are viewed as a smart investor.
4
Profit
A business investor helps in earning maximum profit with the least losses (basically risk management) thereby generating surplus and revenue for the socio- economic development of a country.
