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Persuading bankers and investorsQuestion How do I perform the necessary research to convince bankers and investors my business model is viable?
Answer Convincing bankers and investors you are viable depends on how convincing the information is that you provide. When investors look at a plan, the viability of the market is critical, but it isn't enough. You also need quality of management, defensibility of the business, and competitive advantage.
When bankers look at a plan, they look at your idea. But mostly they consider your credit-worthiness and your collateral, as dictated by internal, state and federal bank regulations. Angel, venture capitalists and other high-risk investors are more in a position to invest based on potential.
Brain Trust contributor:
Author of Hurdle: The Book on Business Planning
President, Palo Alto Software
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