If you were seeking capital
for start-up or business growth and were asked by an investor or
venture capitalist what have you invested in your business, what can
you say? How will you respond when they ask, “What are you willing to
invest in your business?”
Investors want to work with entrepreneurs who are willing to invest
in their own deal. If you aren’t willing, why would they be?
The answer you give should be, “What ever it takes.”
There is a point at which you will want to walk away from a business
if it isn’t working so you don’t put yourself at a disadvantage
financially and end up bankrupt. However, I know many entrepreneurs
who took all their money, credit, and more and dumped it into their
business ensure success. So again, the question is, what are you
willing to risk?
For some the answer is everything. For others the answer is
whatever it takes. For others it may be whatever it takes with a
condition it doesn’t go above $x. Just remember, the answer an
investor wants to hear has no conditions for you. You are 100%
committed to your business.
If you aren’t 100% committed,
don’t start the business in the first place. There will be times where
you need to ask yourself the question, “What am I willing to risk?”
The answer might change from year to year based on your situation and
the health of the company.
The best time to answer the question is when emotions are low.
That’s at the time when there isn’t a crisis or stressful situation.
Answer the question about what you are willing to risk and let your
spouse or a good friend know so they can hold you to it.