Investors rarely care about the nature of your business, they care if you’re business ready.
They might not even care about the long-term profitability of your business. What they want to know is how quickly they’re going to get their money back and what type of return they should be expecting.
In their search to find the hard answers, there are a few things that they look for. If you have these elements, they know you’re serious and your business is likely to be reliable.
If you don’t have them, each missing element is a red flag.
Do you have data backup?
Every business runs on data, regardless of the niche or services, customer contact information, audit records, employee data, and license specs. The more data you have, and the more you can do with the data, the better your business will consistently run.
But investors want to know what you’ll do if part of that data ever gets corrupted or disappears. If part of the profit evaporates with it, then your business isn’t safe. So make sure your data is backed up on either a dedicated server or the cloud.
Many businesses streamline their backups by having intermittent recovery points, when all of the information in the system is downloaded as it is, as well as daily storage that captures smaller changes in in-progress work.
Multiple recovery points help mitigate common corruption errors that slowly degrade data over time because of computer glitches that can’t be caught.
Do you have business continuity and disaster recovery plans?
These are two different plans. One is about how you plan on having business operations continue in the middle of an emergency or major malfunction, while the other details how you’re going to get all the systems and data back to peak performance again.
If you don’t have these plans, investors will think you’re not prepared for problems. Make sure you have plans that are detailed enough that any employee can open the plan and know exactly what to do.
If you want to make your network stronger and your business ready for investors contact us.