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It is an era when solution providers
are making innovations, undertaking new challenges and executing
outstanding projects. Involving into such tasks require fund
assistance and third-party investments. Investors are right there in
the market, but solution providers have to be smart, capable and
presentable enough to grab the attention of those investors. Giving
insight on the ways solution providers can utilize to grab the
attention of investors, Prof Wong Poh Kam, Chairman, Business Angel
Network, South East Asia had extensive talks with SPs and shared his
knowledge in this domain during the SP Summit organized by DQ
Channels which was held in Bangkok.
While speaking to the partners he said,
“To get attention of the investors, entrepreneurs need to give
maximum emphasis on their business plans that are attractive enough
to lure them. They should focus on scaling the existing business and
should have the flexibility to diversify into related businesses.
Partners have to be ready to take or get into new products, services
and new business models. Once the planning is done, the mode of
execution should be in a superior way and if required there should be
strategic partnership also.” He mentioned that in order to attract
the investors, one has to perform better than others and there should
be enough scope for innovations and acquisition strategies. “Service
enables you to leverage the scope of getting investors' attention.
Acquisition of small companies helps the partners to increase its
reach. It also enables them to expand their presence and opens new
space for growth. Partners should know the skill to generate surplus
cash out of the available resources. The idea is to invest on clients
who maximize the funds by allocating them in the right direction. The
whole objective is to strengthen the areas of the client that are
weak and need assistance to build up,” he said.
Further speaking on the class of
clients that investors are seeking to invest,
Wong Poh Kam said, “We look at people who are in their early
stages and have just started their venture. We target those companies
that have fresh strategies and fresh ideas but have less revenue.”
Elaborating on the success story of his
clients, he mentioned that there are a fair number of individuals who
are now successful and have got a lot of variations from where they
had started. Replying to the query of the SPs on the ratio of
investment, he clarified that ratio depends on the time frame and it
can vary from three times to five times. The price earning ratio also
depends on the industry in which the client is involved.
Giving his view on the investment
prospects, KV Jagannath of Choice Solutions mentioned that if funding
is an encouraging part of this business, then the exit path of
investors is a discouraging part. Talking about the prospect of
investment on system integration business, Prof Wong Poh Kam said
that solution providing is a highly competitive business and is bound
to grow in future. The number of players in this business has
increased and their reputation is high. He ended his note by saying
that partners are also seeking investors who are willing to pump in
money into their companies but they have to be competent and
strategic enough to have fresh business plans and ideas in order to
capture investments from Business Angel Network.