ADAPT #28 - How to become more investible

YEW!

Again a slightly different newsletter this week!
I couldn’t hold the structure for too long! Ha!
If you have just joined, go read all the other ones here.

I regularly get asked what criteria I use to invest as an Angel Investor or in my role as partner in BluescopeX. 

As I started sharing the criteria, I discovered it’s useful for many situations:

• If you are thinking of investing 

• If you are a startup trying to raise capital

• If you are a small business building long-term value

But also, interestingly, it applies to you as an individual! 

Slightly unorthodox way of thinking… but see below what I mean.

Let me break it down and show you how it applies.

And like I always say, at the very least this is a provocation, a way to make you think hard about it and make up your own mind! 

In no particular order…

Brand:
We often underestimate this one, and we sometimes don’t think of it when we invest.

Remember the brand is not simply the name, the logo, the font… it is also the sum of all the interactions your customers have with your business (or product/service) and how they average out.

So, think about how your business is perceived, remembered, associated, searched, what you say and what you stand for.

As an individual… what do people say about you when you are not in the room?
What were the last 5 interactions you had with people like?
Is your message constant?
Do you stand for something?
Is your personal brand investible?

Product/Service:
Is your product or service unique?
Irrespective if the IP is secured or not, are you solving the problem in a way that no one else is solving it?
Does this or could this give you an advantage because everyone will find it hard to copy you?

This is kinda obvious but sometimes, the business you are in offers a product or service that is not unique and that’s ok as soon as the other pieces I am suggesting are somehow unique. 

As an individual… are you offering your employer or customers a service that is unique? (You are one of a handful of people that can do it?)
Is it hard to copy you?

If you have a unique service you are investible.

Team:
The typical question: “Is there anyone in the world better than this team/founders to solve this problem?”.

Of course it’s almost impossible to know, but it’s a good way to make you look hard at the team and see if it’s unique in any way.

The second line of enquiry is: “Can the founder/s build a team, can they lead well, can they hire well?

The product may be brilliant but if you can’t gather people around you to build it there’s no chance. 

When it comes to you as an individual the same applies but more to do with your immediate network - that’s your team.

Can you build a network of people that enhances whatever you do, helps you deliver your service to your employer, make you better?

If you have a good network you are investible.

Replicability/scalability:
Replicability means you can duplicate in different markets consistently maintaining quality.

Scalability means you can grow and the system you have put in place can handle it.

This is an important criteria to help you understand the potential of the startup/business.

If the product/service the startup/business offers is hard to replicate or struggles with growth, it is much harder to multiply your return.

If the size of the market and your ability to seize it don’t match then there is an issue.

This applies to an individual when you lead a team inside a business.

Can you delegate, replicate or scale your effort? 

If you can you are investible. 

Business model, contracts, techno-economics, other…

Is there a way you can secure your revenue with signed and secured long term contracts?
Do you have a unique business model or a super defensible one (say you offer a subscription based model while the rest of the market doesn’t)?
Do you have a specific IP secured that will make you attractive for an acquisition?
Does the techno-economic analysis make sense, Etc etc…

As I said there’s more, but above are some good ones to think about.

Ok so there you have it, if you are thinking of investing in a business/startups pay attention to the above.

If you are a business or a startup consider how to improve the above!

And if you are an individual you can also use the above thinking to better yourself!

Do it :-)

Love

Gus

P.S. They also say that if you share this newsletter with someone you’re automatically more investible!!! hahaha
For real… it only takes you 10 seconds and helps us a ton!

If you’re not a subscriber and someone forwarded this to you, do yourself a favour and join the email list: https://gusbalbontin.beehiiv.com/subscribe

My recommendations:

You CANNOT miss this online event series we are organising at Neu21.
Join my business partner and friend, Eduardo Nofuentes at “Culture Can’t Be Fixed”.

Ever felt like trying to change your organisation's culture is like chasing shadows?
You’re not alone! Culture is this elusive and intangible beast...it's there but trying to grab hold of it is like trying to catch a cloud with your bare hands. You can’t do it directly, but it can certainly be influenced.

How? Well...it's all about tweaking the right gears within your organisation, what we like to call "The System of Work."

Sounds more complex than what it is, and we're here to demystify it all for you.

Join host Eduardo Nofuentes at our online series where together, we’ll uncover how elements like prioritisation, decision-making, org and team structures, your rhythms of work and the way you navigate change can be sculpted to reflect your desired culture.

We’re kicking off the series on the 11th April, at 8am AEST with ‘Prioritisation and the Busyness Trap’, where we’ll share ways to overcome the lure of being “busy” and instead shift to being impactful, through simple prioritisation habits and practises.

Book your place today for FREE HERE!

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