MIKE BRUBAKER | OCTOBER 2016

HOW TO FIND A PROFITABLEBUSINESS TO INVEST IN —AND WHEN TO SAY NO

How do successful Venture Capitalistsfind and invest in the businesses that

earned them their success today?

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NETWORK

1

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Always be on the lookout for opportunitiesto immerse yourself in the industry by

connecting with other VCs.

Join a professional organization and attendconferences where you can get a chanceto interact with other professionals abouttheir investing experiences.

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Many communities havetheir own local business

association chapters.

Network on a smallerscale by attending

meetings and luncheonswith your local business

association chapter.

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UTILIZE YOUR ROLODEX2

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If there’s someone you deeply connected with:

Send them a message via LinkedIn or email to tell themhow much you enjoyed your conversation. Ask for career advice if you networked with another VC.

Over time, you will gradually make moreconnections with people involved in the

business and when you’re ready tomake an investment, ask your

connections to see if they know of anysmall businesses seeking an investor.

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KNOW THE SIGNS OF APROFITABLE BUSINESS

3

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Research should be the foundationof your decision making.

In an article posted on Entrepreneur, TimFerriss, an angel investor, outlines a few

rules of highly profitable companies:

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Is there a distribution plan, and is distributionlimited to increase profit?Is the product safe?Are they targeting a niche market?

TIME TO GET SERIOUS

4

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You’ve done your research and youhave a few companies in mind that

you would like to invest in.

Set up interviews with potential business partners Askquestions including but not limited to the ones above.

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Ask them about their business plan and what makesthem a credible and reliable business partner.

Ask about their plan to generate ROI andcrunch the numbers to test its feasibility.

Ask if they have past experience and a clear plan,their business might be a good investment.

MAKE MISTAKES

5

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New ideas are the lifeblood of the investmentindustry. If there’s a new idea on the market

and you believe in it, then go for it.

It’s a proven statistic that nine out of 10startups fail, so don't be disheartened ifyour attempt doesn't quite work out.

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Use this time to re-evaluateyourself and your investments,

then try again with a better arsenalof knowledge at your behest.

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LEARN WHEN TO SAY NO

6

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It’s all part of the learning process.

If there’s nodistribution plan or

clear business model,the product hasn’t

been mass releasedor tested, or if the

market is simply toolarge, the company isprobably somethingyou should pass on.

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Continue to network, build relationshipsand research the field. It will be a cyclical

process until you find a business thatworks for you – hopefully the payoffs will

make you a successful VC.

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Good Luck!

Visit MikeWBrubaker.com for more!

Thank you for viewing!- Mike Brubaker