What would you do if a complete stranger came up to you asking for Ten Thousand pounds for his latest venture?
If you are like most people, you’d probably politely tell him to go…. look elsewhere.
But think about it for a moment… aren’t you doing just that when you push that invest button on your favourite crowdfunding platform?
Who are you gifting that hard-earned cash to?
An entrepreneur’s track record is one of the most important things to consider, when making an investment decision.
Statistically, there’s a 90% chance that your investment into this start-up will fail.
By knowing your entrepreneur and understanding their track record, you can help yourself fall into the 10% of start-ups that succeed.
What have they done previously? How long have they been around? Do they know this space? What are their previous successes?
Perhaps after you have asked these questions, you can see that they don’t quite have the experience you think is required… But…
Do they have the passion… the drive… the intelligence to make this thing happen?
Do they have the right mentors, giving them the best guidance and advice?
And do they have the right team to take this business forward and make it a success?
It’s not rocket science when it comes to putting your faith in someone. It’s a combination of gut feel and common sense.
It’s fine to go with your instincts, but don’t just hand that cash over. Remember to question track record every time.