What exactly do investors look for in an entrepreneur?
I know so many of you have been asking yourselves this same question. Today, I want us to take a look at what every investor looks for in an entrepreneur.
At every pitching event I attend, no matter how much the entrepreneur puts in during pitching, there are basically four things I look for. And these are the same things investors look for in an entrepreneur before investing in their ‘big ideas.’
What investors look for in an entrepreneur
Not every investor is the same. They each have what moves them to pull out their wallets and hand you some banknotes for your business. At the core, here’s a list of what investors look for in every entrepreneur who needs their money:
1) Passion
In the face of failure, passion keeps you going. Remember, determination only comes with that willingness to move, and that willingness is driven by passion.
When a leader is passionate about the goals the company is pursuing, that passion often motivates other team members in the company to be passionate about carrying out their tasks.
Not only that.
When you are out meeting potential investors, that passion will show, and being able to get your vision across with this enthusiasm will have a lasting impact.
2) Opportunistic
Understand that life opens up opportunities for everyone. You either take them or you remain afraid of taking them. Being opportunistic is a huge trait to have for any entrepreneur.
It’s not about taking unnecessary risks or moving into territories, sectors, or markets you have no experience in. Instead, it’s about being able to locate and capitalize on opportunities that are available in the marketplaces you know.
Sometimes, the opportunities will be outside of those markets, and whether you look to try and take advantage of them or not is down to a separate trait: your willingness and ability to adapt.
Investors believe your level of flexibility has a lot to do with you grasping any opening that comes your way.
Also Read: How to Establish and Build Your Business Credit Score: Module One
3) Depth of skills
Adaptation in a startup founder is key. The entrepreneur is going to have to wear a number of hats and cut across multiple sections of a business. This can be exhausting, but it shows true commitment.
To some, it comes naturally. They can put themselves in a situation and adapt to their immediate environment. They can look for opportunities that are not in their comfort zones and know how to approach them.
An entrepreneur with a broad depth of skill across multiple sectors is one thing all startups need and that is what investors are looking for.
4) Charismatic
Being a charismatic entrepreneur opens many doors for you in the world of business. People unsurprisingly flock to the charismatic leaders of the world.
Although being likable is not necessarily a key trait for a business owner and entrepreneur to have, due to the fact that at some point in their careers as entrepreneurs, they will need to make tough decisions in order to put the business first, it’s easy to understand why charisma is important.
Being charismatic can give you the power to motivate the team around you, which is essential for successful business leadership. And there is no doubt that when meeting investors, that charisma will have an effect (provided the business idea is a good one).
Bottom line
Obtaining investment as an entrepreneur is a dream come true. I am not saying if you don’t have one of these traits, then you won’t be investable. No! That’s definitely not the case.
There are a host of other things investors take into consideration, many of which are not even related to the entrepreneurs themselves. For example, an investor looks at the people behind the idea as the key to growth. You simply can’t build the business alone and as such, they ask: “who are you working with?”
No matter how skilled you may be, build a team if you’re serious about raising funds from investors.
Now, you know exactly what investors look for in an entrepreneur before investing in their business ideas. Which of these traits do you possess as an entrepreneur? Let me know in the comments below.
