Updated: Mar 2, 2022
Just as you would not fly with a pilot who doesn’t follow a pre-flight process and checklist; or trust a doctor who didn’t follow well -defined diagnostic procedures. Why is it many of us invest (sweat equity, our own cash, or the resources of our company) in ventures where we don’t know:
if the leader has the experience it takes to succeed,
if the innovator has the “will” to follow a proven procedure,
that the person spending your money, can delineate performance goals for success,
how well the venture can develop a collaborative team,
that the required market research has been done and that customers will be prepared to pay for the offering.
As an investor, you need to know if the entrepreneur that you are going to entrust your money and resources with has the capability of spending your hard-earned resources wisely. When leaders of ventures know their objectives and have a well-defined game plan, they will be able to recognize potential hazards and be ready to deal with them.
Here are some simple questions that will help you determine if a leader is committed to putting in the effort that is needed to succeed:
Can he/she describe in detail what it will feel like when success is achieved?
Can the leader let team members know when the venture is successful and be able to explain how that success will reward everyone who contributed to the enterprise's success?
Is the leader prepared to concentrate on those people who will have the greatest impact on the success of the venture?
Will achieving the goals of the venture make the leader more enthusiastic and energetic?
A statement made by Napoleon Hill in “Napoleon Hill’s Positive Action Plan" states: “Compromise is an essential element of politics, diplomacy and negotiation, but not in the setting and reaching goals.”
If you are an investor, look to see how many of the following values are confirmed in the venture before you invest:
Have the objectives needed to succeed been written down?
Have the rewards and benefits of achieving each objective been considered?
Has the venture champion tested the objectives to see if other stakeholders will support their achievement?
Does the leader know why others will support the achievement of the objectives?
Does the team know if the potential users of their offering have the “will” to buy, what you are creating?
Does the leader know what elements in the process can be controlled or manipulated and those you cannot?
Does the venture leader know what information; skills or research will improve the odds for success?
Has the management team created a process map with timing points and established “go/no go” criteria at each point?
Can you live with the possibility that the venture fails?