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Updated: Sep 24

investment readiness

We're back with the second article in the Investment Readiness series.


In this new series of articles, we're learning about all the critical areas of your business that investors will scrutinise when you're going out and asking them for sweet, sweet piles of cash to build your dreams. We're covering:


  • Strategy: how to define, refine, and document your path forward

  • Operations: assessing and optimising for genuine scalability (this article)

  • Finance: building robust models and projections that stand up to scrutiny

  • Data Room/Collateral: preparing comprehensive due diligence materials and data rooms

  • Coaching: getting ready for the tough questions with investment meeting and Q&A coaching

  • Investment Strategy: mastering cap table planning and investor identification


If this is the first article you're reading in the series, I recommend checking out the first one first as it sets the context for this one. Check that out here, and then head back to this one to continue your learning.


investment readiness

I'm writing this series (in part, I'm also writing it because it's really useful) because I just launched a new Investment Readiness service to help startup and scaleup Founders and Operators get the best raises on the best terms by honing their operational effectiveness - we call that service 'Op Eff It' because there are few things I love more than a cute play on words.


Or, if you can't wait for the rest of the series, why not get ahead of the game and take Op Eff It's free Investment Readiness Healthcheck to assess how you're doing right now across all 6 of the categories?


Okay, let's get stuck in.


What are 'operations'?


I work with a lot of businesses who invest a huge amount of time into writing their Strategy (which is great, you should spend time planning out what you're aiming to achieve and how you're going to achieve it). Unfortunately, if you spend too long working on your Strategy you might forget to leave enough room to figure out what your operational plan is.


As we discussed in the last article, your Strategy is the crucial blueprint that tells investors where you're headed. It's a very, very important piece of work. But it's almost useless if the systems that are mean to help you run it keep breaking down. You could have the most wonderful Strategy in the world, a truly disruptive idea that will change everything and a beautifully detailed plan for how you're going to do it, but if you can’t actually execute it, it’s just a nice dream.


Think of your operations as the engine of your business. A sleek, powerful car with a broken or missing engine make look cute on your driveway and might make passersby think that you're crushing it, but if it doesn't go anywhere then the reality is that it's a bit of a waste of money.


Investors know this. And while a compelling Strategy grabs their attention, it's the efficient, scalable, and robust operations beneath the bonnet that truly convince them you can deliver, grow without im-or-exploding, and turn that strategic vision into cold, hard cash.


investment readiness

Put simply, your operations are simply how you get stuff done. It's the plumbing and wiring system of your business, the repeatable actions, the tools, and the workflows that turn your brilliant Strategy into a tangible product or service that reaches your customer.


'Operations' covers every single step involved in delivering value:


  • how you find and onboard a new customer

  • how your product gets built or your service delivered

  • how you deal with support queries

  • how your invoices get paid

  • the tooling you use (from your CRM and project management software to your actual physical equipment)

  • the structure of your meetings (are they actually productive?)

  • the dashboards you check to know what's going on

  • how effectively your team communicates and collaborates.


It's about how you manage your people, your technology, and your processes to keep the whole show on the road. When I (and your potential investors) talk about operations, I'm talking about the nuts and bolts that make your business engine hum (rather than splutter - truly, I know nothing about cars and I really need to put this analogy to bed).


Why do your operations matter to your investment readiness?


Essentially, it's because they want to see that your grand plans aren't just fluff; they want proof you can actually deliver.


Taking your business from idea to execution


When you've nailed your strategic plan (you've written your Mission Statement, you've set some OKRs, you've ideated the pieces of work that are going to get you to those goals, and you've built the foundation of a plan for measuring how it's working), investors then need to see how that work translates into daily reality.


Writing a Strategy is comparatively easy, actually showing up every single day, focussed on the right things and the right time with the right people in the right way, using the right tools is really, really hard. Especially if you want to do all of that without it costing you 5x revenue.


Proof of scalability


Can you build it and grow it without breaking it?


Every investor wants to back a business that can grow, and grow big. But can you handle that increased demand without everything going wrong? Having really robust operations is a great way to demonstrate your ability to scale without costs spiralling out of control, quality plummeting, or your team burning out.


They show you have the systems in place to efficiently handle five times, ten times, or even a hundred times your current volume, proving your growth isn't just a hockey stick shaped fantasy.


Risk reduction

investment readiness

Investing in early-stage businesses is inherently risky, but anything you can do to lower that risk is investor gold.


Clear, efficient operations actively mitigate execution risk. They show you have predictable processes, clear responsibilities, and a consistent way of working. This transparency reduces the unknowns for investors, which will go a decent way towards assuring them that you can consistently deliver on your promises and navigate potential bumps in the road without the business having a full breakdown.


Efficiency = growth (profitability version)


Ultimately, investors are looking for returns. Outside of a few niches, we've moved on from the 'growth at all costs' era so those returns are going to be tied to both top and bottom lines - and streamlined operations directly impact both.


When you're clear on how you're cutting out waste, optimising workflows, and making the smartest use of your resources possible, you're also improving your margins and enhancing your unit economics (and we know investors love good unit economics).


How do you get your operations into a state of investment readiness?


Building a path to investment-ready operations is going to be a two part process: first, you figure out where you stand today, and then you roll up your sleeves to make it better for tomorrow.


Start by mapping your core processes.


This isn't about creating dense flowcharts just to add to a data room, it's about getting real on how things actually get done so you know and can communicate how they're going to continue to get done as you grow.


Think about your customer acquisition journey, how your product or service is delivered, how you handle support, or even your internal finance workflows. Visualise these steps - maybe with a few sticky notes on a wall or virtually (at Pay As You Go COO, we bloody love a good Miro board) to understand the flow.


Identify bottlenecks


Once you've mapped your processes, you'll naturally start identifying bottlenecks and inefficiencies. Where do things always slow down? Where do mistakes creep in? Are resources just being wasted? Try 'walking the process' yourself, or, ideally, spend some time with your team to spot the friction points.


Measure what truly matters, operationally.


Forget vanity metrics (it's hard, but I have faith in you). What are the concrete numbers that tell you if your processes are healthy and scalable?


Think about your cost per acquisition, your average delivery time, your error rate, or how many support tickets your team handles per day. These figures aren't just data points, they're how you prove to investors that you're in control and capable of growth.


Optimise for scalability


Once you know where the snags are, it’s time to get stuck into optimising for scalability.


First up: standardisation and documentation. If every task is done differently every time, you can't grow reliably. Documenting 'how we do this around here' is vital for consistent quality, easy onboarding of new hires, and proving to investors you have repeatable success, not just luck. Project management tools will be your friend here - you can build simple project templates to guide your team as you delegate.


Then, look for opportunities for automation where it makes sense and won't impact the customer experience. Can that repetitive admin task be handled by software, so you can free up your team for higher-value work? Making smart choices about tech can significantly reduce human error and boost efficiency.


Plan your resources


Finally, look at how you're allocating your resources. Are your people, tools, and budget genuinely aligned with your most critical operational needs?


Investors want to know that you're spending their cash wisely and getting the best value from your investments in people and tools.


Are YOUR Operations showcasing your investment readiness?


Now that you know what operations are and why they're absolutely critical for both growing your business and getting investors to open their chequebooks, it's time to assess how yours are doing.


Answer these ten questions honestly – they're the litmus test for your operational readiness for investment.


  1. Can you clearly map out your core business processes from start to finish, and do they consistently produce the same result? If every task is bespoke, scaling will be a nightmare.


  2. Do you regularly identify and fix bottlenecks or inefficiencies that slow down your key workflows? Ignoring blocks in the system means you'll hit a wall when demand increases.


  3. Are you consistently tracking key operational metrics that tell you if your business is getting more efficient as it grows? Investors want to see data, not just anecdotes, on your operational health.


  4. Is your team clear on their roles and responsibilities within each process, or is there frequent overlap or confusion? Clarity in roles is crucial for efficient execution and accountability.


  5. Have you documented your crucial 'how-to' guides and standard operating procedures so new hires can quickly get up to speed? You can't scale if every new person has to reinvent the wheel.


  6. Are you leveraging technology and automation to handle repetitive tasks, freeing up your team for higher-value work? Manual work might fly now, but it'll crush you at scale.


  7. Is your technology stack genuinely supporting your operations, or is it a patchwork of systems that create more friction than flow? Bad tech choices can be massive operational blockers.


  8. Do you have effective quality control measures in place to ensure your product or service consistently meets high standards as you grow? Investors won't back a business that can't maintain quality at scale.


  9. Do you have a robust feedback loop for operational issues, allowing your team to identify problems and implement improvements continuously? Stagnant operations lead to stagnant growth.


  10. Can you confidently explain to an investor how your current operations will handle a significant increase (e.g., 5x or 10x) in customer volume without imploding? This is the ultimate scalability question.


Take the time to answer these questions honestly. Your answers will give you a pretty good indication of whether your operations are robust enough to attract the right investment, and more importantly, to actually execute and scale your brilliant idea.


If you’re struggling to answer any of them, or want any additional help, just give me a shout via the link below or why not get ahead of the game and take a free Investment Readiness Healthcheck to assess how you're doing across all 6 of the categories?



Otherwise, I'll see you next time we'll be diving into how your Finances contribute to your investment readiness.


Investment Readiness Discovery Call
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