What Attracts Entrepreneurs to a Business
Entrepreneurs are often engaging people who are interested in making money and building a business into something that will make them proud. There are a number of reasons a particular entrepreneur may be interested in a certain business or industry.
The interest may be personal, financial or a combination of the two. Whether you’re hoping to attract the attention of an entrepreneur or are a businesswoman looking for your next venture, here are some of the criteria investors often consider.
It’s no secret that entrepreneurs are interested in making money for themselves and for shareholders. Although profitability isn’t the only motivation for an entrepreneur, it can make a difference when an entrepreneur is considering his next move in the business world.
High Market Share
It’s extremely difficult to make money with a business in a field that has a great deal of competition. If you open a burger stand, for example, you may have to compete with a number of similar businesses in the area. An entrepreneur may be attracted to a business that has a market segment all to itself. When a company has an industry largely to itself, an entrepreneur enjoys the prestige of being a market leader; he also enjoys enhanced bargaining power. An entrepreneur may negotiate for higher profit margins when customers have fewer options.
Long-Term Potential for Success
Although the life of an entrepreneur may seem glamorous, it may take a great deal of time for a venture to turn profitable. “Wall Street Journal” writer Kelly K. Spors points out that entrepreneurs often aren’t able to cut themselves a paycheck for a long time. An entrepreneur may be attracted to a company with the potential to be successful in just a few years.
A Company in Need of a Natural Leader
The psychology of an entrepreneur strongly affects the kinds of companies she wants to create or take over. “Entrepreneur” magazine’s Bill Wagner points out that these businesspeople are usually natural leaders and strong problem-solvers. A business with clear problems and a loyal workforce is likely a good fit.
A High-Profile Opportunity
Entrepreneurs are often confident individuals who seek risk. Although these individuals may not choose a company out of vanity alone, they’re often attracted to risky opportunities they truly feel they can handle. A businessman gets personal satisfaction and positive attention when he turns around a company everyone else thought was dead, or markets a product no one else thought would be successful. Those unlikely successes can also help him find his next entrepreneurial opportunity.