Angel investors often choose their investments according to various criteria, including
the entrepreneurâs ability to successfully sell a unique product and service
that has a strong potential for success. In addition, some entrepreneurs possess
certain winning qualities over others that can easily attract angels to their deal.
Here are some distinct characteristics that many successful entrepreneurs must have:
The 4 Câs- confidence, competence, communication, and conceptualization
Successful entrepreneurs are strong-minded, self-assured individuals who
take pride in their company and inventions. They have proficiency in their field
of industry and possess strong communication skills (verbal and writing), especially
when it comes to selling their product or service. They also freely exchange their
ideas and opinions with investors, management team, board members, etc. Furthermore,
they have an impeccable skill for envisioning unique novel ideas, can identify complex
situations, and offer quick solutions to existing problems.
The 3 Pâs- passion, persistence, and pragmatism
Successful business owners often demonstrate a profound passion and a robust
enthusiasm for their profession, qualities that are highly regarded by many angel
investors. In addition, they are quite persistent individuals, especially when it
comes to bringing forth viable ideas and concepts. They are also pragmatic persons
who have a realistic approach in life, especially when it comes to their company.
The 2 Fâs- focused and flexible
Another striking attribute that successful entrepreneurs share is their
focused mindset. They are aware of their companyâs mission and they meticulously
address what needs to be done in order to succeed. They also have the capability
to adapt to different modifications throughout their companyâs cycle, especially
when it comes to strategy, and are able to properly readjust in order to meet those
changes.
Leadership
It is a well-known fact that it takes a competent leader to successfully
start, run, and cultivate a business. Many successful entrepreneurs have this leadership
ability. They are able to execute their goals in a timely manner and possess the
integrity to deliver. They are great delegators and attract a solid management team.
In addition, they assume the security and risks of their company while still focusing
on their objectives and motivating others in order to guide their company towards
success.
Stable pattern of success
Often times, entrepreneurs start their businesses in an area where they
have both an interest and experience. The successful ones have a continuous, solid
track record of endeavors. Prior achievement is usually indicative of future success.
Physical and mental stamina
Many people often assume that once they become a business owner, they will
have more free time and are able to work their own hours. However, contrary to popular
belief, it is a proven fact that new entrepreneurs must still work long hours for
extended periods of time. In order to successfully do so, they must be in good health
and be prepared for the physical and mental challenges of entrepreneurship.
Comprehensive awareness/learning from mistakes
Winning entrepreneurs can easily identify complex situations and while
every decision made may not have a successful outcome, they are aware of all the
ramifications involved in a decision-making process, assess all risks thoroughly,
and learn from their mistakes.
Staying power
Successful business owners may be persistent in their approach but are
also very patient and tolerant when finding capital. They are aware that obtaining
startup funding is time consuming, and give angel investors adequate time in completing
the due diligence process.
Energy
Running a
new business requires a considerable amount of energy on the
entrepreneurâs behalf since he/she have to work long hours for extended periods
of time. Winning company owners not only have the physical and mental stamina of
running a business but also have a high-level of energy in the workforce. They are
continuously involved in ensuring the success of their business and use their energetic
persona to motivate others towards the companyâs goals.
Realistic expectations
Positive thinking is essential for success and triumphant entrepreneurs
seem to always possess this characteristic, exuding confidence in those around them.
Even though most are optimistic individuals, they are quite realistic in outlook
and are aware/ready for the different challenges throughout a companyâs development.
Objective approach
Angel investors also believe that successful entrepreneurs have an objective approach
in life. They rarely take into consideration the feelings of other people during
their business deals and are more concerned with the performance and accomplishment
of others. This remarkable ability to psychologically keep their distance and to
concentrate on the effectiveness of operations is what establishes a successful
entrepreneur from the rest.
Enjoys risks and challenges
Starting a business is considered an enormous risk and entrepreneurs need to be
able to make many more risky decisions throughout their companyâs development
as well as learn to cope with the consequences of their business decisions. A business
owner who is somewhat comfortable with taking on risks and challenges is more likely
to make the right decision that will result in larger payoffs. These decisions can
result in a successful company.
Financial aptitude
Successful entrepreneurs are very good with numbers. They are able to predict
efficient financial projections, know their budgets and receivable amounts. They
are also more economically practical than other business owners and tend to not
overspend company dollars when necessary because they are aware of startup costs.
Welcomes the participation of angel investors
Often times, angel investors expect a percentage of stock and/or a board
seat when investing in a company. While this may seem like a fair exchange on an
investment, some overly controlling entrepreneurs have the need to dominate and
direct, and may not embrace the idea of giving up a portion of their company. However,
successful business owners have the tendency to welcome the participation of angel
investors to their company, especially when it comes to seeking advice and mentorship
since many angels were once successful entrepreneurs. The valuable insight that
an angel investor can provide a young company may mean the difference between a
struggling business and a prosperous one.
Honest relationships with investors
It is interesting to note that successful enterprise owners had more open,
honest relationships with their investors than their not-so-successful counterparts.
This entails monthly contact with lead investors and quarterly information of the
companyâs performance. Entrepreneurs who fully disclosed company matters to
their investors also had more cooperative, respectable interactions towards each
other. In addition, investors are more likely to participate in future rounds of
company funding when notified regularly of their investmentâs performance.
Partial network of contacts
Winning business owners also have an established small network of contacts
when compared to less successful entrepreneurs. As a result, they are able to network
even more, making introductions to angel investors and angel groups.
Ability to learn from mistakes
As a company leader, entrepreneurs are often involved in making many risky
decisions regarding their enterprise. While many of their business decisions may
not always be the correct choice, successful business owners are able to properly
assess any mistakes, learn from them, and assimilate that new information for a
brighter future.
While an angelâs decision to choose an investment varies between each investor,
many will agree that there are certain characteristics that differentiate a successful
entrepreneur from others. Among them are confidence, determination, a realistic
outlook, and honesty with their investors. Angel investors often are attracted to
these winning traits because they usually signify a shrewd entrepreneur with sheer
determination to succeed and a possible large return on investment.