Are You an Investor?
Speculating on the value of an investment today requires that you anticipate what it would likely be worth when you need to trade it or transfer it in the future. This trade you hope will be for a fair market value in terms of cash, favors, or something else of equal value. What fair means depends on your expectations and judgment of cash value return, reputation, or rights. Your personal assessment of value plays a significant part in how you feel about a good bargain. If you choose to maximize the value of your time, you need to contemplate the various forms of investments available. Assuming that you consider yourself an asset, how can you invest in yourself and do it well?
Education in different forms pays dividends. Physical education and consistent training repay you in terms of a longer, better quality of life, recovery from illness or injury, and a more desirable appearance that others identify as charisma and sex appeal. Furthermore, a physically healthy and functional body provides a means of dealing with hardship that keeps the practitioner positive and free of excessive stress. Recently I spoke with a coach that currently holds 10 world records and at the age of 65, shared with me that a lifetime of investments into his health made it possible for him to weather the isolation and depression associated with COVID quarantines.
Investments in academic education can prepare you for a professional career and with this, a significant increase in your lifetime earnings. Specialized training enables you to increase the amount of money you can bill for your time due based on the results that you can accelerate for your clients. Gaining knowledge for yourself through various forms of training such as martial arts or lifestyle mentorship will enable you to avoid mistakes with better physical and mental coordination for uncertain situations. Physical and mental investment make you a more valuable resource in the market, however, are these the only or best forms of investments available to you?
What It Takes
In terms of multiples, successful new business startups create the most incredible returns of any market. Human creativity still provides the highest returns available. It is therefore worth understanding how investment decisions are made in this world of opportunity. It takes a skilled investor to make such investments pay off, and not every investor is capable of picking successful startup opportunities or making them successful. What do successful startup investors look for when it comes to investment? It takes creativity, ingenuity, knowledge, dedication, and a solid business plan with timing to convince professional investors. Despite all of these logical factors, When it comes down to it, the most important factor investors look at is the “character” of the entrepreneur. Intelligence and motivation aside, character traits are essential to success. By character, specifically: devotion, confidence, integrity, credibility, honesty, determination, courage, and values. With these character traits, a person can have the Leadership wherewithal to make a business work.
How does a professional investor evaluate character? Several indications signal valuable character traits. To be a successful investor, a general partner has to prove that they have created a market for something that either does not exist or has failed to exist because others have not invented it or monetized it effectively. It takes courage to put your life on the line with resources and reputation at stake to make an idea come to life and generate value. With this track record, investors seek out entrepreneurs that have proven the same qualities and the ability to be mentored or coached as necessary to deliver the concept offered to the market. Failure also develops character. The willingness to learn from failure and adopt a more humble or enlightened approach toward business indicates character.
Why Character is an Important aspect of SELF-CARE
You may not aspire to be an entrepreneur or to seek investment from an investor. The intent is to illustrate the importance of character in a realistic context. As of this writing, I had 2 interactions with successful entrepreneur investors from 2 very different investment companies last week. The first was a conversation with an investor who has taken 11 companies public where he earns a fee for his services only on a successful exit. Picking winners for him is a matter of effectively evaluating the character of an entrepreneur and using his time wisely to help that company succeed in the marketplace. His reason for reaching out to me was to connect with some people in my network in another country where he may consider relocating with his family. The purpose was to expand his reach to good people that he can trust. I am truly honored by his trust and respect for my opinion. Financial investments follow people, not ideas alone.
In the second case, there was a face to face meeting with a senior investor who will invest in companies that have achieved some growth but could benefit from business direction and expertise to achieve next-level growth. In the latter case, I will introduce a local startup introduced to me by a former VP colleague from an earlier role. In both cases, the central theme is this: Trust is earned and comes by way of character, experience, and reference. It’s unclear if there are any benefits for me personally in either case. Likely there isn’t any value from the referrals. However, as these situations suggest, it’s a small world and your reputation and character precede you.
How to Build Trust
If the trust of others is earned based on experience and referrals, it is also true at an individual level. Objectively, an individual that has earned their own trust makes decisions and acts in their own best interest as an advocate. By observation, matching words with actions for instance build congruence and credibility. Demonstrating reliable follow through on commitments provides proof of credibility. The way to do this is through effective time management goal setting and being aware of one’s intentions using a system to resolve problems rather than emotion. SELF-CARE was originally intended to ensure that I preserved my peace of mind and reputation. In reality, it provided a reliable method to build my own trust through routine practice. Over time, as I trusted myself more, I pursued greater aims.
Absent a historically reliable record, we cannot trust ourselves except by way of delusion or hope. The danger of believing ourselves to be credible and trustworthy when such trust is unearned is assuming risks and making decisions impulsively, with a lower probability of success. Overestimating or evaluating our own personal character, we can suffer serious setbacks when situational outcomes prove otherwise. The fact of the matter is that our reputation can suffer serious issues based on small losses than it gains for reliable success. It is therefore more important that we guard against attitudes, behaviors and actions that jeopardize credibility with effective systems.