One of the key reasons that investors will invest in your company is that you demonstrate good character. In the beginning stages it’s the most valuable asset that a small business or start-up has. Here are six examples of how to demonstrate good character in a business money relationship.
- Show Trust – Do what you say you will do. One of the best ways to demonstrate that someone can trust you with money is to have a good credit score. Good is considered 680 – 740 and excellent credit is a score of 740 and up. Having good or excellent credit shows a promise delivery track record. You’ve made prompt payments on your debts over time. Your reward for a good credit score is lower interest rates than those with only acceptable credit or poor credit.
- Show Respect by being tolerant and accepting of differences. You enter into a relationship when someone invests money in your company. Sometimes we forget that the investor may have a few different goals than ours. Make sure to outline specific roles and responsibilities in writing beforehand so they can be referred to later when differences occur. Remember to stop – breathe – think then react to differences. At the very least it’ll show you’ve considered their perspective.
- Show Responsibility by being accountable for your words, actions and attitude. If you’ve said you’d deliver a product by the end of the month then deliver it by the end of the month. If the delivery deadline slips by be accountable by saying you’re sorry and letting the investor know when it will be delivered. Your attitude must be “Yes I can.” If something is going on in your life that is keeping you from delivering on time, figure out how to do it in the future.
- Show Fairness by playing by the rules and delivering on your promise. You really don’t want to go to court. In a recent case (6/15) the FTC alleged that a creator who sought money to produce a board game failed to deliver on his promises. This is the first ruling of its kind and I’m sure not the last. http://tinyurl.com/pjz9y9d
- Show Caring by expressing gratitude. When someone invests money with you, you are now in partnership with him or her. You aren’t adversaries. (Even if sometimes it will feel that way.) If they took a meeting with you remember to say thank you, or offer to be of service to them or if appropriate – offer a small gift, like a pen with your logo or buy them coffee.
- Show Connectedness by getting involved in community affairs. Now more than ever investors are looking to see how connected you are in your community. It’s not so much that they’re altruistic it’s because it can help them determine your market reach. If you’re business is bicycles it’d be a good thing to be involved in bicycle path planning in your community.