If there’s one four-letter word on the mind of every investor, it’s “risk.”
While virtually all investment opportunities involve some level of uncertainty, the people and organizations who eventually invest in your company—be they bank lenders, venture capitalists, or your friends and family—are the ones who are confident they have minimized their risk. Sure, they want to feel excited about an opportunity, but what they’re ultimately looking for is a safe bet.
How can you ensure that the company you’ve built poses the least amount of risk to investors possible? The answer is in your books.