6 Questions to Ask When Considering an Investment Partner

Investors offer a great contribution to your company or any business. The monetary investment offered by any potential investor is a big help for the funding of your business venture. However, finding an investment partner is not easy. Investing is risky. This is the same when looking for a potential investment partner.

When choosing and considering an investment partner, asking the following questions can help you:

 

How do you decide on where and who to invest?

Knowing your potential investor’s reason as to why he/she decides to invest in the particular projects rather than the others will tell you a lot about the investor. It also tells something about what they prioritize in a company. It can tell whether they want a strong team, bankable idea or a sharp business instinct.

How do you judge your success as an investor?

The investor’s view of their personal success greatly helps in setting a tone for their future hopes for you.

What has been your most disappointing venture? Why?

It’s important to know how your potential investor views disappointment. It is equally important as to how they view success.

What do you expect a return on your investment?

Asking this question allows you to settle expectations about the projected return of investment with your potential investor. It will avoid misunderstanding that can occur later.

How involved are you after investing?

There are different types of partnerships. That is why this question is important. It will help you know if your potential investor can provide the support you need and look for.

What are your expectations in this partnership?

Going straight to the point with your potential investor can yield effective answers. It is always helpful and important to find out if your vision aligns with your potential investor’s vision. The last thing you want to happen is to argue over a problem which is detrimental to the future of the company or business.

These questions will help you find the best investment partner for you. It is important that you and your investment partner has a common goal and a common understanding of the partnership. Harmony and understanding are important in every partnership.

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