As Benjamin Franklin is often credited with saying, “If you fail to plan, you plan to fail.” Planning is often at the center of moving forward in life, whether starting a new business or entering a new industry. To realize your dreams, I’ve found planning is essential. Proper planning can help investors achieve their desired outcomes and attain their financial goals, giving them a better chance for positive results.

I urge investors to closely review the overall strategy of any deal. Is there a proper thesis around how to enter the market? Does the investment strategy add value? Has the financial model established a well-thought-out set of assumptions and risks? Is there a well-thought-out exit strategy? Here are some things to remember when investing:Know your market.I find many people confuse the term market or marketing for the word advertising. To know your market—who makes up your market, how large your market is and what stage your market is in—is so important.

In my view, the investors who do not study this important part of a business are really missing a huge element of why they do what they do. Knowing your market means understanding what a business is about: Who do you reach out to within the business? How much of the market could you potentially captureIn addition to calculating some percentage of market that is capturable, knowing your market can also enable you to establish a growth ratio. Most investors are interested in the growth potential of a business.

Likewise, consider who the competition is and what price they are offering. I encourage all serious entrepreneurs and investors to review market strategy closely.  Make sure the investment strategy adds value.Depending on the stage of the business or opportunity, a strategic investment must have reason to add value. Much like a plant, maturity is a gauge of readiness for additional growth. If the business is not producing, have you answered why? If the business has plateaued, are you interested in expanding further?

Strategic investment must bring a benefit to all stakeholders. Expanded equity investment in an enterprise or real estate must be supported by some track record for revenue generation.

Look for financial models built on stable assumptions and risk profiles.

To know a business is to know how it operates financially. I’ve found that a financial model that is built on a set of well-thought-out assumptions is essential to long-term success. A maturing business may have many strategies that are intertwined and complementary. Do these strategies account for the risk of failure or the risk of your market changing? Is your strategy adapting to the market you serve?

Carefully crafted financial models can solve many complex business requirements, but, more importantly, they can provide a financial compass for stable growth. To support growth, make sure the financial plan accounts for appropriate cash flow.

Pay attention to the exit strategy.

Not only are investors interested in getting paid along the journey, but I’ve noticed many investors are most interested in the exit. The exit can be viewed similarly to a harvest. A farmer grows a crop for the harvest. Without a harvest, the farmer cannot continue the business. This is also true for investors. Many invest for the harvest or the exit. So, great business strategies must offer a clear exit strategy for the investor.

One element to pay attention to in the exit strategy is the duration of the investment. Not being in a deal long enough can be as negative as being in a deal too long. Thus, the duration of the investment is important to get correct. Flexibility is also important when it comes to the duration of the investment as market conditions change constantly.

A second important element is to bring in a comprehensive set of buyers. A broker agent can often improve offer multiples based on the type of and number of buyers making an offer on the deal. Brokers can also improve the success of your exit if they are properly incentivized for success. Brokers aligned well with your legal counsel can help ensure all important elements are negotiated in your purchase and sale agreement.

Finally, don’t forget to properly incentivize your own team to execute your exit strategy. Teams that are aligned and compensated properly to complete the transaction often succeed.

Investing can be challenging but also rewarding. I think it’s always exciting when great teams and plans converge. A well-executed strategy can lead to success, so assemble a great team to execute on strategy, and align yourself with seasoned professionals. Together everyone can make a difference, especially when all parties involved are aligned.