15 Things an Investor Looks for in an Entrepreneur

What An Incentive Program Can Do For Your Business

This post was written by Clinton Loomis, a writer and teacher.

An investor has to analyze quite a lot of things before finally making a decision to invest his money into a business.

On what basis will his decision be based? Here we have gathered fifteen such important points that an investor will definitely want himself to be assured about before making out any decision.

1. Financial Value.

The very first and most important thing the investor will look for in your proposal will be its financial value.

There are some projects that speak for themselves. As they are so powerful that they are sure to capture a great amount of market as soon as it is introduced. The investors will obviously want their money returned with bonuses. No one will ever like to sink away their money that they have earned with much labor.

2. Background of the Entrepreneur.

Since the investors will meet you for the first time, they will need to know everything about your background. Be prepared to answer questions related to your family and friends.

They will need to have this sense of satisfaction that you can be trusted with such a huge amount of money. For that they can even go for secretive enquiry about you from people who know you well.

3. Past Experience.

Maisie Acton, CEO at Coursework Club has expressed her feelings from the past that:

“Investors will need to know about your previous experiences as an entrepreneur or an employee. They will enquire you about your performances and judge how responsible you are on the basis of those records. Again, for this purpose, they will carry out a secret research from your previous company’s employees. After all, they want their money to go to someone who is experienced enough, not to someone who is naive to this field.”

4. Why Your Product Only?

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You should be able to convince the investors fully about the uniqueness of the idea behind your product or service.

Compel them there is no better option for them where their investment will be most worthwhile. They will need to know what is so special about your product that others do not have.

5. Strategies.

The investors will take keen interest in knowing what strategies your company will be using to ensure increased profits in the long term. There should be an incentive for them to continue working with you in your future projects as well.

6. Competitiveness of Your Product.

The investors will want a product which either would not already be in the market. Or if it is there, then, it should not have much competition.

They will look for qualities in the product that are most in demand by a large group of market.

7. Simplicity.

Along with the uniqueness, the investors will look for a proposal which is simple to understand. The more complex a product, the smaller its market. Normal people should get the purpose of the product very easily.

8. Current Progress.

Are you just good at conveying your message? Or are you able to put your words in action?

They will be highly impressed to see you have already taken some initiatives to establish your company. This will convince them of your seriousness towards your work.

9. Vision.

This is perhaps the most important thing they will look for in an entrepreneur.

How clearly is he able to convey his proposal to them? If he is not sure of his goals himself, then what is the purpose of any further discussions?

10. Conviction.

Multitasking Can Be Productive (If You Know How To Do It)

Remember, you are the game changer. You can either put the investor into doubt whether to proceed with you or not. Or you can make him believe through your own strong belief, that your idea is the only best one to work with.

11. Curiosity.

Investors will look for the element of curiosity.

The nature of a curious person goes a long way. He looks for newer ways to bring betterment to his plans and ideas and is always searching for more profitable strategies.

12. Confidence.

Remember, there is a very thin line between confidence and over confidence.

Make sure never to cross that line or else you will lose the investor forever. Show confidence in your product and own it.

13. Humility.

Humbleness in nature attracts the investors since they want to work for long-term with you. If you are rigid, then it is going to create problems for both sides.

14. Commitment.

They can even test you to check how committed you are towards your work. They will notice it in your tiny gestures. Be mindful of the promises you make with them no matter how trivial they may sound.

15. Realistic Approach to Negotiations.

While negotiating, you should be sounding sensible, yet realistic. If you demand extremely high, then it shows you are greedy by nature and a little immature too.

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How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money

How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money - Interview with R.J. Weiss from TheWaystoWealth.com

This is an interview-style post with R.J. Weiss from The Ways to Wealth.

Hey R.J. What’s your background and what do you do?

I blog about all things personal finance at The Ways to Wealth.

Before I went full-time into blogging, I spent ten years in the financial services industry. Specifically, helping families buy the right type of life insurance.

During my time with a full-time job, I’ve always had different side hustles going on. From freelance writing, Amazon FBA, conversion rate optimization, to website design — there were many projects I pursued outside of work.

How did you start your career in finance?

I got started in finance straight out of college working for my the family insurance business. As I love the financial planning side of things, I choose to specialize in life insurance planning. This led me down the path to obtaining the CFP® Certification.

What made you start blogging?

The Ways to Wealth, which I started in 2016, has been my 5th blog.

The others mostly fizzled out most due to a lack of interest. But, in 2009 I started a personal finance blog called GenYWealth.com (no longer around) that had some success.

The idea GenYwealth.com was to write about what I was learning about studying to take the CFP®. The blog was, by all means, a success. I was able to gain valuable knowledge, pass the CFP® exam, earn some extra money and build up a good community.

I then took this knowledge and started a business blog, which allowed the insurance agency I was working for to generate leads.

I started The Ways to Wealth because my passion is personal finance–from investing to travel hacking, I love the challenge of optimizing my finances.

How was The Ways to Wealth born?

I didn’t have much of a plan for starting The Ways to Wealth when I purchased the domain name.

I was actually thinking it would be a niche site, which was inspired by Pat Flynn’s niche site duel. Then, I came across the income reports of Michelle Schroeder-Gardner and wisely changed direction to a more traditional blog.

This change came about 6-months after starting to blog.  I did a timeline of the site in one of my income reports.

What worked best when trying to grow the site?

I had a decent knowledge of SEO. So at first, I started growing the site with email outreach. One of the first posts I had about best investing books of all time, had about 15 links to it.

This was nice to start with but was quite slow to build up, as it can take a while to earn Google’s trust.

The big turning point came when I started to understand Pinterest. I spent a few frustrating weeks on the platform, then it finally started paying dividends.

I went from about 100 sessions a day to 1,000, which was huge for me at the time.

How did you get to 3 million monthly viewers on Pinterest?

the ways to wealth pinterest 3 million monthly views

I lay out my Pinterest strategy here. But at the core the idea is to:

1) Write high-quality content that Pinners want to click through, read, and share.

2) Pin to my own and high-quality group boards, with a keyword-rich description.

3) Continue to Pin my best pins across my own boards/group boards, ruthlessly eliminating Pins that don’t perform well.

One thing to keep in mind is impressions don’t mean much on Pinterest. What counts are clicks to your website. So, you want to design not for impressions but clicks.

What aspects of the online business are you outsourcing or automating and how?

The first thing I outsourced was Pinterest design. I’ll design about 30-40 pins a month, so this was big time saver for me.

Of course, it took some work to get going. At first, I hired 5 or so people on Fiverr. I found one decent designer but the work quality deteriorated over time.

I then went to Upwork and posted a job for a  graphic designer. I found a great team down in Argentina, who I’m very happy with.

I’m currently experimenting with working with a ghostwriter. A few of my latest posts have been transcribed from my recording, with the ghostwriter making sense of it all.

I can compile about 3 posts in 90 minutes, then take another 90 or so minutes to prepare them. Saving me around 3-4 hours per post this way.

What’s your main income stream and why do you think it works for you?

My main source of income for the blog is affiliate revenue. It works because the partners I do have are high-quality businesses, who deliver value and solve real problems. This makes it easy to naturally link to such a partner.

When did you start making more than $10K/month and what was the turning point?

My first month over $10K was in January of 2018. In December of 2017, income was around $3,000 and in July of 2017 around $500. So, it was definitely a jump.

What happened then in January?

First, personal finance is at its peak interest in January.

Second, I had multiple Pins go viral.

Third, in November I started driving traffic via Facebook to the site. So, in January I could take campaigns I’d been fine-tuning for a few weeks and scale them.

How do you balance work and family life?

I have a routine I stick to Monday through Friday.

When inside of my designated working hours, I work. When outside of these hours, I’m not.

This is a lot easier said than done. But the thing important for me is not to take work everywhere I go. This means I don’t have any apps on my phone that are work-related (email, analytics, etc..)

What are you 3 best finance tips for newbies?

  • Focus on your savings rate. How much you save is the most important decision you’ll make.
  • Small incremental improvements add up over time. My favorite example is increasing your savings rate 1% every quarter, means you’ll be saving 20% of your income in just 5 years.
  • Study happiness. Become a student on how to increase your level of happiness. The natural result is you’ll want less overtime, making the game of personal finance a lot easier to win.

What books, blogs or podcasts help you stay motivated along the way of growing an online business?

I read a fair amount to keep fresh ideas in my head.

My favorite podcast is The Tim Ferriss Show.

Two blogs I enjoy reading are:

Farnam Street
Barking up the Wrong Tree

And as far as books. I try to read one a week. A few books I would recommend to online entrepreneurs would be:

Deep Work by Cal Newport
The Compound Effect by Darren Hardy
The Four Hour Work Week by Tim Ferriss

Pin this post if you enjoyed the interview.

Check out my interview with R.J. from TheWaystoWealth to see how he entered the finance niche, started making money blogging, began bringing traffic from Pinterest and monetizing it with affiliate marketing, and is now making $10,000/month from his online business. #blogger #interview #blogtraffic #incomeideas #income