We know just how valuable real world knowledge and experience can be to the everyday business owner or private investor when it comes to demystifying, unpacking and unpicking the complex world of investment. So we talk to the experts for you, and share their experience so that everyone can reap the benefits.
In this month’s edition of our ‘Ask the Expert’ interviews, we talk to accountant Andrew Bosworth of Better Business Accountants. Andrew assists his clients in achieving the ‘3 freedoms’: financial, mind and time freedom, and thoroughly enjoys guiding them towards successful ventures- he’s here for the wins. Andrew’s insights offer a fresh perspective and practical tips, and are very much worth a read.
We asked: based on your expertise, what are the top 2-3 things a person should consider before adding their opportunity listing on Investamatch?
- You’ll need a business plan, including a 5 year vision statement
- An understanding of what you are wanting from the investor: is it money? Expertise? Both?
- Do you want a sleeping partner or someone who will get involved? Are there alternatives (such as debt funding) rather than equity funding?
Who are the top 3 experts people listing opportunities on Investamatch should consider talking to before they start their listing?
- Their accountant
- A lawyer
- The bank (a question worth asking: should you fund via debt instead of equity?)
What makes you look more closely at opportunities listed on InvestaMatch?
I look for really innovative ideas - has this been done before? Or is this a different take on an old idea?
If you could give people seeking investment one killer piece of advice - what would it be?
I would say find your point of difference. What is it that makes your opportunity stand out from the rest?
What are the top 2-3 things someone seeking investment should do when an investor indicates they're interested?
- Vet the person first before providing any information, or have them sign a confidentiality agreement.
- Unfortunately there are a lot of tire kickers out there, so have a list of questions to weed them out, and ensure they are genuine potential investors.
If someone is inexperienced with negotiations (closing investment conversations), what are your top 3-5 negotiation tips for opportunities?
- Have a team of experts helping you with this process, such as your accountant and lawyer.
- A first offer is never the final offer.
Do you have different tips for people looking to become a first time or everyday investor?
Do your homework before committing anything- your time or your money. Spend some time getting a feel for the market, and the varied opportunities available to you.
What are the top 2-3 things a first time or everyday investor needs to be thinking about when they begin to look at opportunities?
Investment is all about risk: all investments are risky, but some are significantly more risky than others. Make sure you understand the risks you are taking on before committing. Getting expert advice will help with this.
Who should first time investors or everyday investors talk to before committing to an investment - and why?
Talk to an accountant and a lawyer, who between them will help you to understand:
- The risks involved, and to help you mitigate those risks as much as you can.
- They will also help you ensure the deal is value for money, and commensurate with risks being taken on.
- They will help you to consider the worst case scenarios, and the implications for you (including ways to minimise these.)
- Finally, the rewards you should get as a result.
What are your top tips for working out if an investor is 'for real' or 'tire kicking'?
The red flags I would look out for are:
- Vague answers to questions
- Based overseas
- Unwilling to be open about their situation and what they are looking for in return
Lastly, do you have any killer pieces of advice to help investors make sound decisions when engaging with an opportunity?
Be wary of opportunities that do not seem to be presented well, do not have the backing or support of professionals and are lacking in detail.
Vet the existing directors and shareholders of the company: what is their history, what / how much are they willing to commit themselves?
“A first offer is never the final offer.“- highly perceptive and practical insights from Andrew that will help everyday people learn more about this complex sector- thank you for sharing your insights and knowledge with us Andrew.
Are you making plans to finance your business through external investments, or begin your journey to investing in someone’s future? Investamatch is here to help- get in touch today and let us guide you through the process.