Thinking ‘finance first’ is a mistake we see so often; with business owners believing that the number invested should be the biggest driving force behind their decision. This is fundamentally the wrong mentality for approaching investment and quite simply, should be one of the last things considered.

Before jumping into an investment, I would urge you to consider the below and ask yourself the following questions:

1 - Do our morals and values align?

Having anyone in the business that aligns with your morals and values is extremely important and when it comes to an investor – this is no different. There are many situations you will be in that will require decisions to be made and often; the outcome of those require heavily on an individual's moral compass. Having someone who is in line with you on this is incredibly important.

2 - Do our personalities & perceptions align?

Similar to morals and values, and often underestimated; having the right people/person on your team in line with yours and your employee's personality is so important. Not just important for you, but for your workforce who will essentially be exposed to the decisions of any investor.

3 - Does this individual fit in with our culture?

Often, we believe we must fit around an investor – however this couldn't be further from the truth. Ask yourself this, ‘Will this investor be for our brand and company culture?’ If it's not an instant YES then there's a high chance it's a NO. This individual will likely be on your board and make many decisions essentially associating them with your brand.

4 - Have you done your background research?

Research is key! Make sure you are thorough with your background checks and have a full picture of the investor's finances. You need to know where their money is coming from and what their financial background is – as this will have a huge impact on yours.

5 - Finally – do they believe in you and your business?

Again, if this isn't an instant YES from them then it's probably an instant NO from you. Having someone who believes in your vision for the business is incredibly important and can be a huge deciding factor. Will this individual give you the room to do what you need to do, or will they just get in the way? Realising the difference between the two can determine whether you have a good or bad investor.