If you are looking to invest in PE. There are 8 kinds of entrepreneurs that you need to be careful with. Investing in their organization might not be a good option and could even cause you great loss:
1. The ones that are sending cheap buiness card bought at discount price
Busienss cards represent the identity of a brand and the individual. People who won’t spare money on building up outstanding image don’t have the view and boldness of a good leader.
2. The ones that often appear in the photos with different governors
Getting support from the local government is good. However, if the entrepreneurs are seen much too often in photos with governors, investors need to worry about whether the organization really has the capability to develop by itself or it is only a result of good “governor relationship management”.
3. The ones that are currently facing a marital crisis
Marital crisis won’t miraculously disappear. It will consume one’s energy and passion for live and work. People, who fail to handle their family business well, will barely have the capability to spare their time and energy thinking about how to develop a new business and lead it tofuture success.
4. The ones that like to fire their CFO on a regular base
Chief Financial Officer plays a very important role in an organization. Business owners might fire their CFO on a regular base mainly for two reasons: First, the CEO cannot manage to get a good operating strategy that is approved and supported by the CFO. Second, they are looking to avoid any CFO having the time to learn about the true financial status of the organization. Either way, the financial future of the organization should be concerned.
5. The ones that don’t love their parents at all
If one don’t love his family, it is more likely that he won’t show much sympathy and responsibility to the shareholders at all. Don’t trust that they will treat you specially.
6. The ones that donate money to temples
Making donation are a good thing for commercial organizations to do. However, if entrepreneurs are sending money to temples, it is highly likely they are donating to pray for continuous good luck in their business. No investors will like to bet money on only luck. It’s recommended that you should pay some attention to such kind of entrepreneurs.
7. The ones that always talk big
Although having big dreams are important, entrepreneurs need to have the capability to analyse the current market situation and set constructive strategies accordingly. People who always talking big despite the current situation might not be realistic entrepreneurs, who are trustworthy and will develop their organization step by step. Their ambitious might eventually turn out to be bluffing.
8. The ones that have too many ideas
If people don’t have any idea at all, they won’t set towards starting a business at all. However, if entrepreneurs have too many ideas and pay too much attention on choosing the right one, they might end up wasting their time on meaningless work and doing nothing at all.