Two smart moves before saying “Yes” to an investor

Getting an offer from an investor for your business is a big deal. It might feel like the right move is to say “yes” right away, but slowing down and thinking things through can actually help you get more than just money from the deal. Here are two important steps to take before agreeing to any investor’s offer.

1. Say thank you, but don’t rush

When an investor shows interest in your business, the first thing you should do is thank them for believing in your idea. However, instead of quickly agreeing to their offer, let them know you’re still figuring out the details of your fundraising.

One way to do this is by asking them to fill out a form that shows how much they want to invest and how they can help your business beyond just giving you money. This puts the decision-making power back in your hands, allowing you to see if they’re the right fit for your business.

By taking your time and not rushing to accept, you give yourself a chance to make sure this investor can provide more than just financial support. It also shows them that you’re careful and thoughtful about who you bring into your business.

For more details on this, you can check out this blog post from Hustle Fund.

2. Find out what they can offer besides money

Money is important, but a good investor can also offer advice, experience, and connections. Some investors have skills in different areas like marketing, leadership, or building strong teams. These skills can be just as valuable as their investment.

When deciding whether to accept an investor’s offer, think about how their knowledge and network could help you grow your business. The best investors bring more to the table than just cash—they can open doors, provide guidance, and help you avoid common mistakes.

Even if you don’t have many offers on the table, it’s still important to take the time to ask how an investor can contribute beyond money. Building relationships with investors who have a variety of skills will give your business more tools to succeed.

Questions to ask before you say yes

Before making a final decision, ask yourself these key questions:

• Does this investor have experience in my industry or with similar businesses?
• Can they introduce me to people who could help my company grow?
• How involved will they be beyond their financial investment?
• Do their long-term goals match up with mine for the company?
• Are their terms and expectations fair for where my business is right now?

These questions will help you figure out if an investor is truly the right fit for your company. For more questions to consider, take a look at this helpful Forbes article.

Conclusion: Take your time and choose wisely

Accepting an investor’s offer is a big decision. Instead of jumping at the first chance for funding, take a little time to evaluate whether this investor can offer more than just money. The right investor will be a long-term partner who helps you grow your business in different ways. By thinking carefully and making smart choices, you’ll be setting your business up for future success.