Did you know that the first time someone sees your business, it can affect how much money they want to spend there? That’s why it’s so important to make a good first impression. But did you know that first impressions can also affect how much investors want to invest in your business?
When you need money to grow your business, investors will decide how much they want to invest based on their first impression of your business. This can affect how much of your business you need to give away to get the money you need, and how much your business is worth when you sell it.
For example, a guy named Jeremy wanted to get money for his business called Swag.com. At first, investors thought it was just a company that sold things with logos on them. Even though Jeremy tried to show them that it was more than that, they didn’t believe him. They only wanted to give him a little bit of money for part of his business.
But Jeremy had an idea. He changed the way he talked about his business. He said that it was a fancy website where people could buy things with logos on them, and that it was a technology company. The investors liked this idea better and wanted to give him more money for a bigger part of his business.
When you want to get money or sell your business, it’s really important to make a good impression. This can affect how much people think your business is worth.
Why Diversification Can Hurt Your Business
Sometimes, when a big company has a lot of different parts, it can be hard for investors to see how much each part is worth. This can make the company seem less valuable than it really is.
For example, a big company called Alibaba split into six smaller companies. When this happened, the company was worth more money! This is because each of the six smaller companies was worth more than the big company was before.
So, if you have a big company with a lot of different parts, investors might not think it’s worth as much as it really is. It’s better to focus on one thing and be really good at it, instead of doing lots of different things.
What You Should Do for Your Business
It’s important to think about what you want for your business. Do you want to make more money right now, or do you want to sell your business for a lot of money later?
If you want to make more money right now, it’s okay to do lots of different things. But if you want to sell your business for a lot of money later, it’s better to focus on one thing and be really good at it. That way, investors will see how valuable your business is.