Starting your own business is an exciting but overwhelming time for an entrepreneur, so we have put together some helpful information to guide prospective start-ups on the Isle of Man.

Tips for getting investor ready

If you’re looking for professional marketing advice or consultancy, there are a number of local organisations who offer marketing services from website development, to campaign planning and graphic design.

1. Do your research

The pitch-all method doesn’t often lead to successful investment deals. Do your research, and approach investors in your industry/sector or those who align with your business strategically. This means the value will not just lie in the money, but in the advice and help they can offer you.

2. Build the relationship

Your investor is NOT a cash machine. You must educate yourself and understand them in order to get better deals done.

3 Get properly investment ready

When you’re pitching to an investor, it’s important not to just focus on your product or services. You must think about what the agreement looks like, and consider practicalities such as Due Diligence.

Often there is too much discussion about the business, and too little investment.

It is important to know exactly what you are going to spend their investment on, and when.

Other Important things to consider

If you’re looking for professional marketing advice or consultancy, there are a number of local organisations who offer marketing services from website development, to campaign planning and graphic design.

Balance sheet

  • If you have IP protection, is this owned by company?
  • If you have board members, do you have an independent board?
  • Is the company solvent?
  • Are the investment legalities in place?
  • Have ALL of your employees including you, signed contracts of employment? This must be a formal contract, with annual salary and holiday clearly outlined.
  • Are there any disputes and have these been closed?
  • Are there any conflicts of interest?
  • Ensure your organisational chart is updated

Be patient

  • Finding an investor does take time. It might take up to 12 months.
  • You must be open to investment all the time.
  • You must build relationships over time and nurture prospective investors.
  • Remember only 2% of deals succeed, 60% rejected after 30mins, 10% are rejected after full evaluation, and 3% fail.

Make it easy with the right tools

  • Are you properly regulated?
  • Do you need to set up a physical or virtual data room to share information to facilitate the due diligence process?
  • Have you set up an investor Q&A?

 

 

Business Isle of Man is responsible for securing the Isle of Man's status as an internationally respected economic hub for the export of high value added products and related services.

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