What would it mean for your business if you could attract an investor? Perhaps an acceleration of your growth ambitions, an introduction to a network of valuable contacts or simply the financial space to finally realize those big plans. But how does that actually work, working with investors?
Jan Willem Temmink, Export coach & Germany expert at Brilliant Work, has been working for years on a project basis for a private equity firm. Either long-term investors in start-ups, small, medium and unlisted companies.
He often gets the question, “Oh Jan Willem, so now you work for the quick money?” The image many entrepreneurs have of investors often turns out to be somewhat colored. But his answer is invariably, “No, I work for the smart money!” And that, of course, then demands an explanation.
We take you through how these investors bring more than just capital
– they can make THE difference in your success story.
Rapid growth with smart collaboration
As an entrepreneur, you probably dream of growth: more sales, conquering new markets or a strong international position. But how do you achieve this? Just investing in your business is often not enough. The right network and strategic support are at least as important.
That’s exactly where investors make the difference. It’s not about “the fast money,” as some people think, but about “the smart money.” They bring not only capital, but also a wealth of knowledge, experience and, above all, valuable connections.
Networking that opens doors
An example: suppose you want to expand into a new market, such as Germany. It’s a country with a lot of potential, but without the right network it can take years before you find the right customers or partners. The Germans can describe this very typically: ‘Du brauchst Vitamin B’. One means relationships (‘Beziehungen’).
This is where a private equity firm comes in. Often, through their extensive (international) network, you can get in touch with the right decision makers in a short time. Think of potential distributors, cooperation partners or even candidates for strategic acquisitions. In practice, this leads directly to agreements at management level. In fast-growing markets, such as cybersecurity, the value of these warm network contacts is essential to build competitive advantage quickly. The input of investment capital and existing international connections are the deciding factors for rapid growth
Smart budgeting for long-term success
Investors also have a keen eye for timing. A real-life example: during the corona crisis, an investor called the director of a portfolio company with a surprising proposal.
“We are currently the market leader. If there are stagnations, let me know immediately. And if additional investment budget is needed, indicate it. Then we will add capital.”
Why? Because they wanted to invest countercyclically: putting in extra effort to increase market share precisely in times of uncertainty. The result? The company not only came through the crisis, but also increased its distance from the competition.
One hundred percent of nothing is … nothing
Not every entrepreneur is eager to bring an investor on board. An executive of a medical technology scale-up insisted on full control for years. But despite her innovative product, she did not have a warm customer network at the right teaching hospitals, nursing centers, etc. The so-called time-to-market became extremely long…
After four years without success, she was open to Jan Willem’s math: “one hundred percent of zero is zero.”
Is working with an investor something for you?
Working with a private equity firm does mean that you will be sharing the equity. But if this leads to a multiplier for your growth, sales and profits, it’s well worth that investment.
Do you want to know what an investor can do for your business? Jan Willem alone has a 250+ address file at home and abroad. We will help you find the right partner and make sure you are ready for a successful cooperation.
Take the first step toward growth
Want to know more? Contact us at info@brilliantwork.nl or call us at 026 2130704 Together we will make your growth ambitions come true!
