Q: How long can I expect a private investor to be involved in my business? Are they generally looking to make a return and exit in under five years or so, or longer?
Mar 11 2008
Answered by: Mark Endersby Ask a question
A private investor is an individual and as such each one has individual objectives. However, most will want an exit strategy where they can recoup their investment and realise their returns.
In your initial presentation or pitch, they will be looking for you to convince them of how that investment will be repaid and how you intend to grow the business. A solid business plan with defensible financials is essential for this purpose and as a rule of thumb, a five year term would be a good guideline to include in any proposal.
Remember also that they will be judging you as much as the plan in front of them. It's no good just handing them a document and hoping for the best. They will want you to sell yourself and your business skills to them as well.
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