Top 4 Qualities Investors Look for in a CEO or Business Owner
We live in a time when almost everyone is starting a new business or startup company and there are top qualities investors look for in a CEO or business owner. This is a good thing. It will significantly boost the economy, and it can help provide jobs for so many people. But on the other hand, it also tightens competition, making it harder for upstart CEOs and entrepreneurs to secure funding since they have so many rivals coming from all sides.
Potential investors don’t just look at the business itself. They also look at the owners and CEOs of the startups that are trying to secure the funding. If you are looking for financing for your business idea or startup, here are some key characteristics and qualities investors look for in a CEO or business owner, or both.
Passion and drive
It’s one thing to be passionate about an idea for a business and another thing to see the whole thing through to the end. Having a passion for a particular startup idea is easy. Business founders see a concept, product, or service that has a certain level of demand. They believe in it so much to try to build something out of it.
But not everyone has the passion and drive to be rejected or to fail over and over again. Do not underestimate just how much investors of all stripes appreciate passionate entrepreneurs. They need to know that the person leading the charge is willing to go through hell and high water to see the idea take off or fail. Regardless of how it ends, they need to know that the money will go to somebody who will fight tooth and nail to see the business succeed.
Skin in the game
Investors also appreciate business founders who are willing to put up their own money for the startup. Most financial experts would discourage business owners from putting up their own funding. However, entrepreneurs who invest their own money prove that they have their own skin in the game.
That is why they will fight to the death to ensure that the business takes flight. It sends the message that you’re all in this together since you raised the initial capital yourself. You would want to have a return on your investment. It also shows that you believe in your own idea and are willing to stake your own money on it.
Knowledge about business and their industry
Passion is one thing, but as the good book says, zeal means nothing without knowledge. All passion and no information set yourself up for failure because you would be acting on impulse, emotion, and gut feeling more than science-backed and evidence-based strategy.
Why not consider going to business school? Consider looking into the requirements for ETEEAP or Expanded Tertiary Education Equivalency and Accreditation Program and see if you can qualify. Going to school and taking up business, management, or other related courses will provide you with the theoretical knowledge you need before you dip your toes into the practical experience of running a company.
You need to understand how business models work, marketing strategies, and even the laws and regulations that govern the industry that you’re in to ensure that everything you do as a business owner is above board. It’s not about impressing investors with flowery words or pretending to know more than you do. It will be advantageous if you understand the market, economy, and the industry you’re going into when talking to them. They can tell when business founders are faking it. Just ask Elizabeth Holmes.
Leadership and vision
As the leading proponent of the startup, investors will also look at your ability to lead a team and delegate. Since startups have limited funding, especially in the beginning, it would also mean you would have to contend with limited staffing. That means you need to ensure that you have enough employees to cover the most vital aspects of the company during the beginning stages.
Investors need to know that you have an eye for talent and potential. They don’t want to regret anything with their decision to support you. The qualities investors look for is an assurance that you can lead them towards becoming the best versions of themselves as the business grows.
Being a founder of a business is hard work-it sometimes feels like you have to be all things to all people. But don’t stress yourself over that just yet. Focus on securing funding first, and everything will fall into place. Believe in your idea and your ability to grow it from the ground, and investors will believe in you.
Hope you found these key qualities investors look for helpful. Good luck!