4 top reasons why investor won't invest in your business

[Zangax]

The truth is that some businesses might not get the investors to fund their business. It is not about the financial institutions hating you or your business but they haven't seen any financial reason why they would invest in your business. The below top points might just be the reasons behind their decline for your business

1.Lack of leadership skills: The investors know that for a business to succeed as it should the leadership must be exceptional. The fact is that the person at the helm of affairs is the coordinating factor in a business, when these skills are not exhibited then the business might not survive.

2. Improper cash flow: This is like the most important, they will look at the cash flow of the business. They will look at the inflow and outflow of funds to know if the business will worth them investing their money. With little or no inflow of cash they might not want to invest.

3. Having inexperienced teams: Working with Amateur team mates might hinder investors from investing. No one would want to dump their hard earned money in the hands of Amateurs. Investors will see this as a fall.

4. Following the bandwagon: Investors will jump at a unique business idea not the regular ones

 

[Jasz]

You listed a lot of them, however, the reason is simple: They don't think you can do it. You need to convince them that you have a good chance of succeeding.
Here are the top reasons why investors won't invest in your business:

You don't know your market well enough. You don't have a plan for how you're going to make money from your idea. You don't have enough financial information about your company or its costs. You haven't built up enough credibility in your industry, or you haven't been in it long enough. The idea isn't unique enough; there are too many other companies doing similar things already, or they've already been done and failed. Your product isn't finished yet, it's just an idea on paper (or PowerPoint). It doesn't solve any problems that anyone has right now; it's just theoretical, or it's "pie in the sky" stuff that may work someday but not now. Your product is overpriced for what it does; people aren't willing to pay that much for it when there are cheaper alternatives available now or coming out soon that do basically the same thing (even if they're not quite as good). You're trying to sell something at retail (like a product) instead of selling services.

 

[eldavis]

Another major reason why most investors might not want to invest in your business is lack of trust and transparency. Most people today only care about making profit, hence they are never straight forward and are willing to do anything just to get the extra cash, without minding who they hurt along the way. Such for such persons, they tend to assume the worse about others because they feel everyone else is also like them.
They are never straight forward in their dealings and find it hard to trust others as well.