There are many things to think about when starting a business in the Ponce are of South Puerto Rico – or anywhere for that matter. Making sure your company has enough capital keeps your company's pistons running smoothly is definitely key. That's why so many businesses seek out investors in their early years or during expansion.

But attracting investors is not as easy as it sounds. According to President of the Economic Development Bank of Puerto Rico Annette Montoto, as quoted in article in El Nuevo Día, two crucial elements can make or break your ability to attract VC funds.

1) Having a Well-Rounded Management Team Appeals to Investors

A complete and diverse management team is of utmost importance to any business endeavor. It’s also one of the first things that any funding firm analyzes before deciding to approve your funding proposal.

Company must prove that they have a solid, experienced management team that can lead the business plan to success. The staff must also have personnel who can look after the technical and financial aspects of the company.

More often than not, funding firms rejected proposals when technicalexperts dominate the management staff and there's general lack of business administration experience. Other times companies get rejected because their management team doesn’t have any experience in the financial world and lack the passion to learn.

2) Getting Clear Around Return on Investment for Your Investors

Investors want to know how they are going to get their money out of your company once they invest in it.

The most common strategies for delivering a positive ROI are:

• Management buyout

• Outside buyout

• And public offer (or IPO);

Investors also want to know how long it's going to take to get a return on their investment.  So you better have solid answers with cash flow reports and projects.

On your road to a successful endeavor in Puerto Rico Business, making sure your company is sufficiently capitalized means the difference between keeping your doors open, or shutting them for good.  So be sure to do the homework and build out a solid management team and an excellent ROI as part of your plan to attract investors.

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Links to Doing Business in South Puerto Rico and Ponce Area 

• Brief History of Business in Puerto Rico
• Why Do Business in South Puerto Rico and Ponce Area
• Incentives for Doing Business in South Puerto Rico
• 7 Tips for Getting Risk Capital Funds for Your Puerto Rico Business
  
• Port of the Americas' Global Trade Connection for South Puerto Rico