What is important to the investor? What motivates an investor when making strategic decisions? What characteristics does an investor seek when choosing a country to invest in, or a company to partner with? These are some of the questions to bear in mind when searching for potential investors.
In order to attract potential investors, there are four key steps that must be followed. First, the interested party must research and understand the daily operations of the industry; second, target companies must be identified; third, a thorough research of the company must be conducted; and the fourth step involves identifying a target individual. The driving forces of the sector must be thoroughly understood as well. All these steps combined increases the chances of successfully attracting an investor.
When attracting potential investors, it’s not just about competing with another company, but also against other countries with similar market structure, characteristics and benefits as Belize. You need to determine what are the ‘must have’ and ‘nice to have’ factors for success.
Motivating factors for an investor include:
- Market seeking: Investors always consider access to the market and proximity to customers. For example, an investor contemplating Belize will think about the country’s market potential, but also the ease of access to Central America or the Caribbean region if they would be interested in exporting their products or services.
- Cost reduction: Labour costs play an important role as investors seek markets that will help them maximize their returns.
- Efficiency seeking: Investors also look at the centralization of their activities and availability of new technology. How accessible is new technology in this market? How capable is the labor force when implementing new technology?
- Raw materials, components, sub-supplier seeking
- Profit seeking: Incentives and taxation are two things that investors will definitely inquire about. Investors want to ensure that an incentive package is available that will help them to partially offset their costs of entering a new market.
- Asset seeking: What is the existing production capacity?
- Resource seeking: Is agricultural land available? What are the mineral resources?
Do your research! With an in-depth understanding of the industry and its key factors, you can open doors that you once thought were closed.
For more information, kindly contact the Business & Investment Facilitation Unit at email@example.com or at 822-0175.