What to look for in SME investment
Following last week’s lifting of restrictions, record levels of investment, consumers looking to spend, and the ambition of the UK’s entrepreneurial economy, many SMEs are looking forward to a strong period of growth. Now that optimism is high and investors are looking for companies to support, it is important to be aware of what to look for in a growing firm.
For businesses that we work with at IW Capital, the first thing our investment directors look for is a strong management team. This comes in many forms but ultimately boils down to general business experience and relevant sectoral experience.
One of the marks of a good founder or CEO is the ability to recognise their own weaknesses or shortcomings. No one is an expert in every facet of business so surrounding yourself with talented people is a necessity – whether that be a top-notch CFO or someone that just gets digital marketing, each team will be as unique as the business.
Moreover, one of the most valuable things a business can have is uniqueness, or something that makes it stand out from the competition, aka their very own USP. Once again, it often pays to see if the management team have a unique and powerful blend of experience. If a business has this and a truly unique, innovative product or service, that should be a big box ticked straight away.
Ultimately, as with anything in life, each company’s journey will be unique, but it is always beneficial to make sure you know what you are looking for in each opportunity that arises. Every business and entrepreneur that we have invested in over the past 10 years has been unique, but the things they have in common – experience, ambition and determination – form the bedrock of what it is to be successful.
For more advice on what SMEs can do to help secure investment and what investors are looking for, you can read IW Capital CEO Luke Davis’s recent article for Growth Business.
To find out more about IW Capital, or for more information on investment and non-executive opportunities, please speak to a member of the IW Capital team today on 020 7015 2250, or email firstname.lastname@example.org