Before you turn towards finding investors it is important that you do your homework and know everything under the sun about your business. Attracting foreign investors can be a cumbersome task. It demands efforts, confidence, network and perseverance. With the right tools and techniques you can definitely pave your path better and quicker. Here’s what you must do to ensure you connect with a foreign investor.
- Initiate with a strong business model.
Every good business decision is always built on grounds of strong, clear, and well-planned business model, it paves way for successful operation of your business. It is what talks and identifies your revenue sources, customer base and finance details. To get into foreign investor market you must show successfully how your business can turn beneficial for the investors.
- Plan and prepare yourself.
Before you look for foreign investors, you should be ready with as much data, research and information as possible. You would be required to know each and everything about the business that you are working in. You must also know what the market has in store for you, and how the business will perform in that market.
Have the following ready:
- Data to prove your business’s success in your domestic market
- Your future prospect and how you wish to continue that success with more revenue coming in from investors.
- Documentation of how your business will work under the concerned countries’ government regulations (e.g., if you need government approval, have the forms and a timeline ready)
- A list of potential downfalls and how well you plan on navigating and sailing through them
- Make the choice between vertical and horizontal foreign investment.
There are two types of FDI – horizontal and vertical. Horizontal investment is the common one that occurs when the company (investee) merges with another company (investor), and offers the same products or services but from a different country to gain a stronger position in the global market.
The vertical investment, is the one in which an investor merges with an investee coming from a different country for the very purpose of bringing in and adding more value to the overall supply chain and complement the business better.
- Build an international network.
If a business model is what stands tall as the foundation of your business, then you must understand the importance of networking. It acts as a catalyst for its growth. It is very unlikely that a business gets off the roof sales and records good business without a solid network, and even more so, for the businesses turning towards foreign investors.
If you are in search of a foreign investor and finding it difficult to find the right one then contact FDI India, we are foreign direct investment facilitators for businesses in India. We help bridge the gap between great business ideas and suitable investors. We understand what an investor can do for your business and how important it is to connect with the right investor. Hence, we make it a point to help you find the right investor that can help your business grow manifolds.