Things That Ruin Your Credibility With Investors

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Trust is needed when it comes to building healthy relationships with your investors. It is not only your project that can be at risk when you neglect that factors but you also may lose your credibility with the other investors. Finding the right investors is already challenging and you don’t want to ruin your credibility by taking the wrong steps. 

Things That Ruin Your Credibility With Investors

Building trust with investors

Looking for investment partners is not something new in business. When you work on a serious project that add value to customer with such an innovative ideas then looking for the right investors is necessary. However, you need to be careful in doing so because wrong steps might put your credibility in vain with investors. And here are things you can put into consideration:

Be realistic

When it comes to investors and investments, be realistic. It means you need to make sure that you are taking only the right number of investors and the right amount of money from them. Too many investors and too many investments will overwhelm you. You need to be realistic with your valuation and calculate the timeline when your investors can expect a return. 

Money doesn’t guarantee anything

Remember that more money doesn’t guarantee your project to be successful. When you get high cash, it means you need to give quick return. It brings more pressure on your side so remember to also always have exit strategy and manage expectations that you can handle. 

Pursue the right investors

Pursue the right investors

It is also important to pursue the right investors. Money is essentials but not the only factor to consider when finding the right investors. Hence, it is essential that you know what kind of investors you need. Do you want investors who pour their money generously but impose requirements that you are not able to fulfill? Or do you want short-term investors who aim for quick return? 

The answer is in yourself

You need to know what kind of capital that suits your business’s project. This way, you can avoid ruining your own credibility. Remember that your business needs to grow in the long run. It is best if you make business model and stabilize it beforehand so then you know what you are looking for.

Be wise in how you use your capital

Another thing that can ruin your credibility with investors and investment is the way you use your capital. Money is like a weapon in business and if you don’t know how to use it or where to funnel it to the right area of your project then it will be a waste. It won’t do nothing to your business but ruin its credibility. Therefore, you should make business plan to communicate with your investors. Your business plan should lay out your step-to-steps milestones. This way, investors know your sustainable growth. 

Prepare business proposal

It will also help your credibility if you are prepared with business plan as well as a set of achievable long-term and short-term goals. Then, always deliver regular reports to your investors to keep them engaged and know the progress of their investment to the worthy project.