An investment memorandum is a document where, in a simple and accessible way, a person explains to the investor the benefit of his project. Thus, it is possible to attract people who are ready to invest in the implementation of the idea, which will allow them to get a solid profit (if the project is profitable and everything goes according to plan).
Investing in Hydra
In comparison with the business plan, the memorandum does not contain a strategy of step-by-step development of the company, and at the same time describes all the benefits and profits of the company in the course of its work (with evidence).
The memorandum (whether it is for a simple business or for the development of the project on Hydra) allows the investor to understand how the profits will be made and what time it will pay off. To create a competent memorandum, you do not need to be a lawyer or an analyst – it is enough to be diligent and carefully examine the latest market news, statistics and other indicators to create a general idea of your future case.
In compiling the investment memorandum, the following criteria should be taken into account:
- Financial performance of the company (store, company, etc.);
- Potential risks for the investor;
- Business reputation and history of the company's creation;
- Skills of employees and managers;
- The necessary costs and grounds for them.
The Hydra Memorandum is not a legal document and is only an introductory nature, allowing the future partner (investor), to understand the essence of your business, to assess its profitability and future income, to weigh risks. When creating a store on Hydra from scratch, the user also has to take care of renting a site, find (or produce itself) goods and customers, show the attractiveness of the project.
Why Hydra investors?
This approach will help to find investors interested in profits and your actions. It should be pointed out that it is not necessary for a potential investor to describe everything in a positive way. Even the "faithful" business has its pitfalls that can interfere with the conduct of business. The investor should know about them in order to have an idea of your company and weigh the pros and cons.