Venture capitalism is more of an art than it is a science. Entrepreneurs are always on the prowl for that crucial cash injection to get their business off the ground. However, investors are not just investing in your business but also in you as a person. Therefore, there are some key entrepreneur traits that they always look for besides the brilliant investible ideas.
Here are 5 such traits:
Investors can tell just how passionate you are about your business. It’s not a logical process but because of their extensive experience that also includes running their own corporations, they can easily spot your passion (or lack of it). Business is risky and despite all the analysis and research, there are virtually no guarantees. Therefore, guess who wants to get in the boat with someone who is not all in right from the start? Exactly. No one!
This is one of the key entrepreneur traits that every investor is looking out for. They are not interested in striking a deal with someone who will take off in the opposite direction when you hit the first bump on the road.
Ambition ranks right up there with passion as one of the key entrepreneur traits. In fact, raising capital for your business is not a one-time thing. You may need to raise funds at various stages of the business. Investors are usually impressed with entrepreneurs who look at the big picture and the future of the business. Ultimately, they want their money back, and with handsome rewards. You won’t get any attention from investors of you don’t have a big plan for the future of your business.
3.Clear articulation of business plans
Communication with potential investors is all about the ability to take charge and lead them through the plan with inspiration. Many entrepreneurs erroneously think that they should come out as extroverted and loud to convey confidence in their idea. A good number of great entrepreneurs are actually introverted. Bill Gates and Steve Jobs are good examples. Articulate your plan in a simple and clear manner that focuses on the important aspects of the pitch.
4.Know your numbers
The most common complaints that received from investors is entrepreneurs that did not have numbers in check. Your idea might red hot, or you may be a passionate idealist, but the numbers tell the real story. One of the biggest mistakes by entrepreneurs is the inflating of numbers or the value of their business. The trick is to come out as a passionate entrepreneur who is also in touch with reality.
This is one of the most important traits that all investors look for in an entrepreneur. Just like customers, investors also have to trust you to work with you. Do not exaggerate your capabilities and always be honest about your shortfalls. All investors will appreciate honesty and might even respect you more for it. At the end of the day, they are entrusting you with their hard-earned money so they’ll certainly be looking for an honest person
Other than the technical and financial aspects of the business, investors also look for other key entrepreneur traits. They are not just looking for the next whacko with a brilliant idea but are looking for a long-term investment partner. You’ll need to woo them with more than just the business idea.
Did we leave out on any other key entrepreneur traits? Let us know in the comments section.