Choose the right investor for you by asking yourself these nine questions

Choosing an investor for your business is like choosing a business partner: their resources and contribution will have a major impact on the operation of your business and its potential for success. Determining the right investor for you is therefore not something to be taken lightly.

As business leaders, the members of the Young Entrepreneur Council have experience finding investors and weeding out the bad from the good. Below, they provide a list of nine questions you can ask yourself to better understand your needs and wants, and help you determine your ideal business investor.

1. What portfolios do my current investors manage?

Entrepreneurs should carry out an analysis of the companies in which their current investors are investing in terms of size, sector and type of investment. Then, entrepreneurs can start targeting investors with different portfolios than their existing investors. Building a diverse investor network helps create a long-term safety net for the business. - Dave Hengartner, ready

2. Does the investor have an interest and expertise in this area?

We've built a SaaS product in the HR space, and we're looking for investors who have funded HR SaaS companies before so they can bring some synergy. Having a strategic investor can also help grow the product and customer base. - Piyush Jain, Simpalme

3. What is their risk tolerance?

Some factors to consider when determining which type of investor is suitable for a brand are their investment horizon and overall financial situation. Those with high risk tolerance may be more comfortable investing in startups or small businesses, while those with lower risk tolerance may prefer more established brands or blue chip stocks. - Candice Georgiadis, Digital Day

4. What do I need?

An honest and diligent answer to this question will tell you what type of investor you need to get started in your business. Lacking the industry experience and network needed to expand the reach and capabilities of your business? So receiving money is not enough; you need an investor who can bring the above qualities to your business. Maybe you're just starting out with an idea and not running a business yet. Savings, family and friends would then be a better source of capital to fund your business. If you are further down the line and working on a product, then an angel investor would be the right choice for you as you strive to make the product fit the market. This is what you need. - Samuel Timothée,