Connecting Community Needs with Resources
Investors
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A neighborhood is more economically developed when its businesses are successful. Businesses can only increase their success when they have access to capital. Investors provide the necessary financial support that allow businesses to create, operate, manage and increase their product and/or service delivery. This financial support typically takes two forms; a loan or equity investment. |
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To obtain either type of investment, a business must show itself capable of effectively managing the funds it secures from an investor. This includes the 4-c's of credit: Character, Capacity, Capital, and Conditions.
1) Character - Investors look to invest in business leaders they feel they can trust to repay the investment.
2) Capacity - How much debt or equity can a business assume before it becomes a liability to the investor.
3) Capital - An investor wanting to make a loan or equity investment in a company will naturally be concerned with how the business is performing financially. What does the business' balance sheet reveal, how strong is its cash flow, and what does the company's income statement show. A business seeking investment must show promise in terms of increased capital as well as controlled costs in order to impress investors.
4) Conditions - Every industry, every sector, and each business must be aware of the potential risks that surround them. While no organization can effectively eliminate all risks, good organizations work hard to identify and create strategies around minimizing business risks. These risks can include legislation, environment, human, technological, etc. The ability to decrease risk increases an investors comfort level with a potential investment.
In the tabs (links) below, we provide an index of investors (both inside and outside of Tucson) and two business clusters in which investors may have an interest in investing. The reader should review the list and see if any of the investors match their business model.
© 2012 Created by CCNR CENTER.
