The New York Entrepreneur

Finance Expert, Wole Oluyemi, Reveals 6 Things He Looks Out for in a Business Idea as an Investor

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From issues such as investing in Africa to private impact investments, and all the stops in between, Wole Oluyemi is an authority whose experience cuts across Sub-Saharan Africa.

He is a highly sought after thought leader, impact investor, and business coach. In this piece, he takes us through his notes on what he looks for in a business before making an investment decision.

Product market fit: 

Does the idea have a good market and a competitive advantage? What is the uniqueness of the product?

How capable are the owners?

Capabilities of promoters to lead a business (leading an idea is a different matter). Do I believe in their capabilities? Have they done anything like this (even on a smaller scale) before?

Is there a market for this product?

The third question is whether there is an existing market for the product or if the product is just the promoters’ wishful thinking.

Do the promoters have a clearly defined business model?

Asking if there is a clearly defined business model will help to know the answers to some questions like:

How will the business make money? 

Will the business generate positive cash flow?

How will I make money?

How will I make money from this opportunity? When will I get my money back? There should be a clear Investment structure and exit strategy. 

Can I work with this team?

Another important question I ask is if I can work with this team of promoters. Do we have a similar set of overarching ideals?

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