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The surge of information has made it very quick for investors to weed out bad business owners, I’ve been approached many times and the most simple answer in my head is this, “I don’t care about how confident you are, I need to know your competent in what you do”. Now in saying that I was approached a while back for $100k investment, I would have done it no problem, the issue was that I felt he wasn’t being honest with himself and me. Why is that? Because deep down I know theirs a chance the business will fail, I need to know how it will fail before it reaches it, I need to know the hurdles (including how high) we are likely to face and how much time that will consume from myself.

Running high with all enthusiasm and excitement is excellent, but that love for your business won’t pay the bills. Last time I checked saying you love your house to the bank when you need to pay won’t stop them from taking it.

Look for investors that have made their money quickly, i.e. from investments, they tend to have a better understanding and better appetite for risk. Investors that have made their money over 30 years in one business and sold out to make bank and it’s the same in their head, they tend not to take risks unless it’s a sure thing. That’s a bad investor you don’t want because they’ll be controlling.