Investing in a technology business is highly tricky. No doubt it can bring out huge profits for you but one never knows when technology changes and a better idea or practice replaces the older one. And with the recent recession one must also be overall careful before investing.
So is there something that normally investors look when they put their money in technology business? Are there some keys that can guide you in this regards?
1. The need of the customers:
The success in technology is how far the company is addressing the need of the customer. In this one should keep in mind that the need of the customer is subject to evolution. Many companies initially bring out completely new stuff in the market but then they don’t upgrade it. Well in order to get your customers engaged, a company needs to bring changes after an interval to give a fresh look and address the requirements and demands of customer deeply.
2. Market potential:
This one is quite related to the previous one. Market potential means that the business not must have a potential to grow but also must address a large crowd. It must be something that can stay in the market on the long run. Does the company have the capabilities to get high sustainable sales giving you a good return? Well at-times both these two addressed but there is also one more thing you must keep in mind.
3. The management:
The managers of the business are the mirrors through which you can see where the company is heading towards, what are their future plans and how are they going to execute them. So make sure that the management is credible and experience that they won’t put your money in jeopardy. Find out whether the company has individuals that have done technology startups earlier in their life. This is a key sign and with it the team must show sign of leadership, creativity and passion yet being flexible to adapt market changes. And for the sake you must look that…
4. There are other fishes in the pond:
Finding other big companies working in the same technology you are about to invest is a clear sign that a company is stable. Either reputable companies have invested or they are using the product of your company also lets you know how much credibility the business has. So if you see some large competitors and a small company trying to make its place with all the above qualities, it’s time to take some risk.
5. Relationships and image:
When investing the things given the least importance becomes crucial at times. For example if the image of a company is not too good among its customers or the relationships between the core team are going sore you must be careful before investing. The matter going inside a company and the way company represents itself is highly important.
Plus is the company investing enough in marketing and making sure their product is well known among the respective customers is also important. Many a times some companies are ahead in technology and invention and the only thing they lack is the right marketing. Their product die before people can know about it killing all your investment though you have carefully put your money in it.