Entrepreneurship and investing are more than just a hobby – they require skills that a person develops over time. Not everyone is born with a talent that qualifies them for becoming the next big business sensation. But if you are ready to put in your time and effort, you can develop these qualities while running your company simultaneously.
Still wondering what these qualities are?
Have a look at the following 7 characteristics that make you a successful investor.
1: Money Management
A fine characteristic of a successful investor is that they make their money work for them. So tell us,
- Are you good at handling money?
- Do you save or do you spend everything you earn?
- Do you use your own money for investments?
- Do you collaborate with alternative finance firms to fund your investments?
- How good are you at getting value for the money you have invested?
- Do you have a well defined investment strategy?
- What are you aiming to achieve? Is it income or capital?
- Are you looking for buying and holding (known as investing) or buying and selling (known as trading) your assets?
It is critical to have a clear vision of your goals. You need to define short-term and long-term goals within a certain time frame. Additionally, having the passion for the decided strategy will not only assist you towards achieving your set goals but will help you stay committed to them throughout.
Once you have settled on your investment strategy, your focus has to immediately shift towards executing it flawlessly. For this purpose, you need to know:
- The market you are investing in very well
- How skilled you are to operate in it
- What the investment market needs at any given time
- Be in loop with the current investment markets
- Whether you need to update your technology and skills to keep up with the market conditions and growth
- Whether your investment strategy is flexible enough for adjusting the changes in the market
Most investors panic and tend to become uncertain when the market changes and fluctuates. Successful investors on the other hand take advantage of these uncertain changes.
Successful investors can,
- Easily spot a bargain
- Act fast in any given situation
- Perform necessary research and analysis
- Plan an investment with an exit strategy
- Devise an alternative plan in case things go wrong to mitigate the risk
Every successful investor is well aware of the risks involved and tries to minimise these risks by:
- Understanding their strategy
- Researching and analysing the expected returns
Being able to notice the risks and updating your plan accordingly comes with experience, knowledge and confidence.
You either have to work along or with a team of employees you trust. Successful investors have a several experts advising them at every stage. They try to connect with like-minded individuals who have similar goals. They seek advice from experts and also discuss their challenges and issues with them. You can also have a mentor to be a part of your team. It will only help you to be focused so that you keep moving ahead towards achieving your goals.
6: Project Management Skills
- Have good project management skill sets
- Are well organised and competent
- Are good with time management
- Are good at solving problems
- Are extremely careful with minute details
There is always a room for learning these qualities through expert guidance and project management courses offered by business schools.
7: Negotiation Skills
Every successful investor is good at negotiating and is able to create a win-win scenario. So, ask yourself the following:
- Can you negotiate?
- Are you prepared and planned on how to handle objections and rejections?
- Can you think straight and think fast under pressure and uncertainty?
- Are you able to express your thoughts verbally?
- Are you good at making judgements?
- Are you persuasive?
- Can you make decisions quickly?
Remember, successful investors do not make emotional decisions while investing. They are good at analysing numbers and returns on their investments. The numbers never lie, always remember that.
All the above mentioned skills can be developed, learnt and mastered if you have the right attitude, focus and belief towards it.