Invest in the person and not the idea

I watch Shark Tank all too often. It's embarrassing if I told you how frequently I watch it. One thing that I notice on the program is that the Sharks will talk much more about the individual and fewer about the business. Just this past week, Bethenny Frankel was the guest Shark and she told among the entrepreneurs she liked him and would invest in him, less his company. So this brings us to the question which is much more important: the individual or even the idea? I'm here to let you know it is the person. The individual is more important compared to business. You may have a excellent idea but if the individual is less than task, the business will fail. How do we end up being the person worth investing in? Great question.

When you are looking for someone like a VC, Angel Investor, etc. they would like to visit a person worth purchasing. Here are a few of the things that those investors will look for:

  1. Are you just the CEO or do you have the company?

If you've watched Shark Tank a period or two (or 26) you know among the questions asked of those entrepreneurs is how much equity they own. Could they be 100% owners and have they essentially become employees? Investors wish to use someone as invested in the company because they are, so that as a founder you're pretty invested.

  1. How are you treating your team?

The Captain of the boat is always the final to get on a lifeboat. They make sure everybody else, including their team are taken care of first. Are you putting your team members first? Are you currently treating them with the respect they deserve? Are they compensated fairly? Exactly what does your company culture say about you? This really is something investors are considering. They need happy employees who are treated well because it speaks volumes concerning the CEO and turnover rates are expensive. When looking for an investor make sure you are taking care of your employees using the respect they deserve.

  1. Share your values

An investor will invest in those companies they share values with. Most probably and honest regarding your values. Make sure your site provides a mission statement. Facebook has a mission section. Maybe you have noticed the social entrepreneurs on Shark Tank? They often have an investment since they're vocal about their values.

Bonus tip: when you share your mission and values, you're more likely to get more clientele who share those values.

 

People do not buy that which you do but why you're doing so. There are thousands of competitors but your unique values are what draw your clientele in.

The moral of the story will be someone worth investing in. It goes for investors and consumers. Investors want to feel better about their investments and people wish to feel good about the firms they devote to.