Here’s a picture of how an investor reacts to your financial information (Part 3)

This is Part 3 of how potential (or current) investors react to the financial statements and financial information you provide.

You can read Part 1 of how an investor reacts to your financial information here. 

You can read Part 2 of how an investor reacts to your financial information here.

The third piece of the picture is where the person you are trying to raise capital from says “maybe”.

Notice how they respond that way even though the financial strength of your company is on the weak side. That’s a very important point.

With accurate and timely financial information they can be confident they have a good understanding of your business. They know you have a solid accounting and financial function in place.

Maybe

So the investor (or lender) is saying:

• Maybe they have just had a tough year or two and they are poised to improve financially
• Maybe our investment or loan can help them grow and improve their results
• Maybe we have an opportunity here to partner with a great management team and help turn this company into something exciting for everyone

It all starts with providing financial statements and financial information that makes it super easy for outsiders to evaluate your company financially.

You never know when you will need to raise capital.

Being ready before you need it is the secret!