How to think like an investor

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DEPARTMENT OF BUSINESS AND
MANAGEMENT STUDIES
Title: HOW TO THINK LIKE AN INVESTOR
BY
NGANG PEREZ (MAJOR 1)
PAN AFRICAN INSTITUTE FOR DEVELOPMENT
-WEST AFRICA (PAID-WA) BUEA
PUBLIC LECTURE

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HOW TO THINK LIKE AN INVESTOR
1.0 Brief Introduction: The principal goal of this lesson, is to provide participants with
knowledge and techniques on how to find and target the right investors, avoid costly mistakes,
and craft convincing proposals that will make investors want to give you money. There are
certain things you need know about investors as an entrepreneur before approaching them for
funding. Don’t you think so? This lesson will make you see from a broader perspective how to
position the concept of raising funds within the confines of your business. It may not be as
easy as you think. However, it is not as difficult as many people tell you, only if you can get
the right knowledge and prepare yourself very well before meeting the investor for the first
time. As entrepreneurs and small business owners, you often trust your gut, moving forward
with ideas that may not be fully formed. Let’s see if this approach is appropriate or not. After
this lesson, raising funding for your business will never be a challenge again for you.
1.2 LEARNING OBJECTIVES
By the end of this session, participants should be able to:
➢ Define and contextualize who is an entrepreneur and an investor
➢ Outline the 3 critical entrepreneurial master piece to keep in mind
➢ Analyze how entrepreneurial blind spots manifest themselves
➢ Assess entrepreneurial blind spot areas
➢ Examine how investors react to entrepreneurial risk
1.3 DEFINITION OF KEY TERMS
(a) Entrepreneur: An entrepreneur is a starter. An entrepreneur is an initiator, a challenger and a
driver. Someone that creates something new, either an initiative, a business or a company. While
every entrepreneur is a small business owner, not every small business owner is an entrepreneur.
(b) Investor: An investor is any person or other entity (such as a firm or mutual fund) who commits
capital with the expectation of receiving financial returns. This definition makes no distinction
between the investors in the primary and secondary markets. That is, someone who provides a
business with capital and someone who buys a stock are both investors
(c) Risk: The Oxford Dictionary gives us one of many definitions to consider which is, “a situation
involving exposure to danger”. Waters (2011) describes risk as a result of uncertainty about future

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events. According to Manners-Bell (2014), risk is the probability multiplied by the severity or
impact of a given event.
(d) Competition: Competition is the contest or rivalry among the companies selling similar
products and/or targeting the same target audience with a goal of getting more sales, increasing
revenue, and gaining more market share as compared to others. But that is not all, it also involves
the rivalry existing between substitutes. This is known as indirect competition.
1.3 MAIN CONTENT
If there’s one thing I wish I did from the start it would be to Think Like an Investor. When you
look at everything through the lens of an investment, everything begins to become clear. Instead
of just jumping into things without clear goals and objectives, you consider carefully the pros and
cons of everything you invest it. Even if you’re just investing your time and energy. You consider
the investment and your expected return.
In this lesson, we will address the critical elements to help you confirm if your business is indeed
ready for investors. The lesson shall cover specific subtopics such as are 3 critical entrepreneurial
master pieces to keep in mind, entrepreneurial blind spot areas and how Investors react to
Entrepreneurial risks.
1.3.1 The Investor’s Mindset
Whether you want to raise $5,000 or $10 million to kick-start your business idea, grow an existing
business, or turn around a failing one, this lesson is the foundation that will significantly increase
your ability to find, approach, engage and convince potential investors to give you funding.
This is a practical, hands-on, and results-focused lesson. Please DO NOT read further if you’re not
willing and ready to put in the work that’s required to get your business the funding it needs. Permit
me begin by asking you this simple question, what exactly is holding you back from raising funds?
So, what exactly is holding you back from raising funds for that business? Can you figure it out?
Most investors complain that it’s hard to find good businesses to invest in. Entrepreneurs, on the
other hand, complain that it's hard to find investors who are willing to invest in their business. The
big reason for this mismatch and confusion is most entrepreneurs who are looking to raise funds

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are flying blind. Their businesses just don’t meet the requirements that potential investors are
looking for.
You see, in these competitive times, raising funds (for any business) requires a shift away from
the old ways of thinking. And that's because, the old way of raising capital means submitting your
proposals, you wait, hope, and if you are not getting any response, you start knocking on doors of
the investors and making calls, all in the belief that someday, your 'luck' will shine. The problem
with this method is it's stressful, frustrating and confusing. And of course, the results are always
unpredictable. It's no surprise a lot of entrepreneurs who are unable to raise capital always blame
it on poor luck and not having any 'inside connections'.
Thinking like an investor is the new, logical and predictable way to raise capital. The system I
provide in this lesson is a sequence of logical and interrelated tasks that significantly reduces the
stress, confusion, frustration, disappointment and unpredictability of raising capital. By following
the steps, completing the tasks, and applying the strategies in this lesson, you can improve your
abilities to find and approach the right sources of capital for your business, and engage potential
investors in a way that best communicates the merits of your business, and convinces them to
invest in you.
As an entrepreneur who struggled to raise funding for two of my businesses, I know how stressful
and confusing it can be to raise funding to save and support a business. Apart from my personal
experience with raising funding, I have observed and studied the progress made by over 100
entrepreneurs as they struggled, failed, and then succeeded to raise funding for their businesses.
That’s why I prepared this lesson to help entrepreneurs tip the odds of success in their favor.
1.3.2: The 3 critical Entrepreneurial Master Pieces to keep in mind
a. Motivation: Motivation keeps you believing in what you believe
b. Knowledge: Information is power.
c. Action: Take action. Do something. Without action nothing is going to happen
The first rule of persuasion is to know what the other side wants. Many of these things are assumed
in real life but it is very fundamental. Every business began with an idea. Capital is also a

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requirement for a successful business to be born. Essentially for the business to be complete it
needs the presence of an entrepreneur. Investors come in to help the entrepreneur realize his/her
dream by sponsoring the idea with enough capital which in most cases the entrepreneur is in need
of.
Just as how the entrepreneur takes risk, the investor takes risk as well. But their understanding of
risk and their attitude to risk is totally different. But what is risk? It is the likelihood or the
probability that something will happen. This something could be favorable or this something could
be unfavorable. The difference between entrepreneurs and investors is the fact that, entrepreneurs
focus on the up side of risk while investors focus on the downside of risk. Meaning entrepreneurs
always thing like their business will never fail why investors look at why the business may fail.
Investors are more objective why entrepreneurs are more like believers.
In neuro science you will discover that the brain is divided in to two hemispheres. The left side
and the right side. The left side of the brain is associated with logic and rationality while the right
side of the brain is associated with emotions and creativity. From these two hemispheres you will
better understand how entrepreneurs and investors think.
In terms of their behavior and attitude toward risk, investors are more left brain while entrepreneurs
are more of the right brain. So, while entrepreneurs are more emotional about their business,
investors are more objective. While entrepreneurs are more excited about the possibilities of their
business, investors tend to be logical. While entrepreneurs tend to be very optimistic people, who
only see growth and possibilities, investors are much more realistic and turn to balance optimism
with pessimism. Also, while entrepreneurs tend to be very passionate about their ideas and
strategies for their business, investors tend to be more analytical and rely more on fact figures and
proves and not just raw emotions and feelings.
Therefore, you see how much more different you are from a potential investor and even though,
you guys are looking at the same business, both of you are assessing the business in fundamentally
different ways. You know, while both of you are interested in taking risk to start and grow a
business, the perspective of an investor can be very different from that of an entrepreneur. Now
these qualities of an entrepreneur are not bad, and I need to make that clear. Actually, they are
essentially good but we need to put them in the right context. It is so much, so important such that
without these qualities, it will be impossible to start and succeed in any business. Every successful

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entrepreneur is a very passionate person. Entrepreneurs are very optimistic people; they are excited
about their business. If not, it will be impossible to start and accomplish anything. That’s what
gives them energy and drive and vision and that is what drives their creativity.
However, the essence of this lecture is understanding how these qualities that you possess, reacts
with how a classical investor appreciates your business. But while these qualities are very good,
they make the entrepreneur vulnerable to blind spots. Entrepreneurs are often too excited,
passionate and optimistic, that they sometime become blind to some important aspect to their
business. These are called blind spots because they usually manifest themselves in 3 ways.
1.3.2.a: How entrepreneurial blind spots manifest themselves
The first is flawed assumptions. That is making assumptions that are not based on reasonable facts.
And this is very common. The second way entrepreneurs manifest their blind spots is over
estimation. For examples, thinking that you will make more sales and profits than the actuality.
The third way they make blind spots is through under estimations. This often happens because
many entrepreneurs often underestimate the cost, impact or consequence of some actions or events
in their business.
To help you understand these blind spots better, I have developed 5 main areas which I think
entrepreneurs seem to suffer blind spots in their business. This is very critical, and it will be for
your good to pay very close attention to it. It doesn’t matter where you are on the spectrum;
whether you are thinking of starting up a business, or you just started or you are already much in
to the business with experience, these things are common afflictions that, affect every
entrepreneur. I hope you understand me?
1.3.3. Entrepreneurial blind spot Areas
1. Value
The first blind spot is value. I see this over time. You will bare record with me that many
entrepreneurs are guilty of over stating their value, product or service. And I understand this
because when you have built something, it is usually tempting to assume that customers will like
it and buy it. That is what everybody believes, but the reality is according to a postmortem of
businesses that fail, up to 42% of businesses that fail, actually failed because the product didn’t fit

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the market. Or better still, the market didn’t think the product was valuable. How could this be?
How could an entrepreneur produce a product that the market doesn’t want? To be practical, how
could a lecturer produce a lecture note, that the students see unnecessary? How could the musician
produce a musical piece that is not loved by music fans? What happened? What went wrong and
where? Let me take you further, how could Brasseries du Cameroun (This is the largest brewery
manufacturing company in Cameroon), produce a product that is not needed in the market? Why?
What happened? Why will an entrepreneur open up a restaurant and customers do not visit such a
beautiful eatery spot? Why? Are you still there? As I write, many of such questions keep pondering
my mind because these are the issues plaguing our society and no one seems to find a solution to
it. Let’s leave it there, maybe we will come latter to it.
2. Competition
The second blind spot is competition. This is another serious blind spot for entrepreneurs. It is
common for entrepreneurs to underestimate their competition or simply ignore them totally. But
the truth is, apart from the direct competition you encounter from rivals in your market, the biggest
threats are not are not even the direct competitors some times. They are the alternatives and
substitutes that your customers or your targets can use in place of the product you are proposing
to the market. Let me ask you this question; What will your customer do with his/her money if
he/she does not buy from you? Family, this is a big peel to swallow. Many entrepreneurs do not
understand that that question is a definition of your competitors. It is time we stop being myopic
and doing business only for our stomach sake. Because this point is very important, permit Major
1, to go deeper. Can I go deeper?
2.a Identifying Competitors
Normally, identifying competitors would seem to be a simple task. At the narrowest level, a
company can define its competitors as other companies offering similar products and services to
the same customers at similar prices. Thus, Chariot Hotel Buea might see Hotel Sinclaire Buea as
a major competitor, but not Holiday Inn Buea. The Catholic University Buea might see PAID-WA
Buea as a major competitor, but not OIC Buea.
However, entrepreneurs actually face a much wider range of competitors. The entrepreneur might
define its competitors as all firms with the same product or class of products. Thus, PAID-WA

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should see itself in competition with all other institutes of higher learning. Even more broadly,
competitors might include all companies making products that supply the same service or could
act as substitutes. In this regard, Chariot Hotel would see itself competing not only against other
big hotels but also against anyone who supplies rooms for weary travelers, guest houses and
summer homes in Buea. Therefore, and still, more broadly, competitors might include all
companies that compete for the same consumer dollar.
Please follow up, identifying competitors isn’t as easy as it seems. It’s really a complicated issue
for businesses.
To be successful, entrepreneurs must avoid the “competitor myopia.” A business is more likely to
be “buried” by its latent competitors than its current ones. For example, it wasn’t direct competitors
that put an end to Western Union’s telegram business after 161 years; it was cell phones and the
Internet. Music superstore Tower Records didn’t go bankrupt at the hands of other traditional
music stores; it fell victim to unexpected competitors such as Best Buy, Walmart, and iTunes and
other digital download services, through the advent of online downloading. Express Union is
facing it pretty challenging doing business in Cameroon now not due to stiff competition from the
express exchange and other money transfer agencies but from hidden competitors like MTN and
Orange mobile money. Another classic example of competitor myopia is the Cameroon Postal
Service which was rebranded as CAMPOST. I don’t know what is wrong with this Cameroon?
CAMPOST was and is still losing money at a mind-boggling rate—Millions of CFA per year. But
it’s not direct competitors such as DHL or esico that are the problem. Instead, it’s a competitor
that the CAMPOST could hardly have even imagined a decade and a half ago—the soaring use of
personal and business e-mail and online transactions, this is called “electronic diversion.”
Thus, competitors could be defined as companies that are trying to satisfy the same customer need
or build relationships with the same customer group. From this perspective, a competitor must not
only come from the same industry or market. For example, if a travel agency can succeed to divert
advanced level students from going to the University of Buea to travel abroad, then that agency is
a competitor to the University. So, your competitors must not come from the same industry. Thus,
in general, the market concept of competition opens the company’s eyes to a broader set of actual
and potential competitors.

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3. Profit
The third blind spot which is common is the profit. Every entrepreneur always assumes their
business will make money and will be profitable. But we all know that not every business makes
profit. In fact, a lot of businesses run in to losses and do not survive. But in the beginning, every
entrepreneur believes that their business will make money and become profitable. In reality, it
usually takes longer than you expect for a business to become stable and profitable. And when the
profits eventually start coming, most times they may not be as overwhelming and overflowing as
your projections make them look.
4. Cost
The fourth blind spot is cost. Most entrepreneurs are likely to under estimate the cost of starting
up or growing a business. In real life, there are a lot of unexpected costs which will show up and
surprise you. Most often these costs were not previewed because a lot of the planning was done
on paper and the entrepreneur did not understand the practicalities on the field. There is a huge
difference between what is done on paper (business plan) and what is actually experienced on the
field (Implementation of business plan).
5. Capability
The fifth type of blind spot that most entrepreneurs face is capability. This blind spot is very
common and a lot of you will easily relate to this. You know entrepreneurs always think they have
what it takes to make their business succeed. I call it the “I can do it alone syndrome”. This happens
because entrepreneurs are usually very passionate and excited about their business. Will you blame
them for that? NO. That’s what keeps them going. But the reality is, for those who are experience
in business, they understand that it takes more than just you, to make a business come alive. You
are very likely to make a lot of mistakes if you don’t have the relevant knowledge and people to
guide you.
So, these are the five blind spots that most entrepreneurs encounter and they come with a package.
Value, competition, profits, cost and capability. It is very important that entrepreneurs understand
these weaknesses and they need to learn how to catch themselves when they are making any of
these mistakes. It doesn’t matter if you submit a business plan, or make a live presentation or pitch
to potential investors, most investors already know that entrepreneurs have these blind spots. These

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investors are smart as well because they will be scanning everything you say for risk. It is important
that you keep this mind that investors will always look at everything you present them in the frame
of mind of assessing risk.
So, when an investor reads your business plan or listen to your presentation, what exactly is she
thinking, what exactly is going through his/her mind? This is one of the biggest benefits you get
from this lecture. This is because I have identified 5 major ways that investors think about risk and
react to them. This is about how investors understands and assesses risk and react to them. Permit
me show you exactly how investors think and react to risk. Many of these things are not very
visible but some are visible. But after you must have been able to go through this lesson, you will
be able to spot them all.
1.3.4. How Investors react to Entrepreneurial risk
1.3.4.1 Fear
The first is fear. Even though investors seem to be hard business people who can spot opportunities
from ten miles, the thing is they are human beings too. And unless an investor already knows you
or trust your judgement, there is bound to be some fear. In the mind of the investor, he/she may be
asking some questions like “what if customers don’t buy this product which I have invested my
money inside? what if the competition crushes your business?, what if the economy crashes and
the business fails?, what if I can’t get my money back”? These are very important aspects to look
out for before you approach an investor.
Your job as an entrepreneur, is to anticipate these fears in advance and provide convincing
assurances that address these fears in your business plan or pitches. You cannot deny these
questions because they are valid questions. So, you need to respond in a reasonable and credible
way such that the investor understands that you have a plan to counteract it.
1.3.4.2 Doubt
The second thing investors respond to it is doubt. Investors already know that entrepreneurs have
blind spots. So, it is very likely that they will have some doubts over the viability and profitability

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of the business. When you come across a potential investor, in his mind the investor may be
thinking, “does this product really solve any problem or need that customers will be willing to pay
for” Is there really a large market enough for this product to make it interesting? Or could this
business be profitable in the long run or is this entrepreneur competent enough to run this business?
These are just some of the numerous questions that are going through the mind of the investor
when you are presenting your business plan or pitch to him/her. These are what I called the
investors’ doubts. Your job is not to deny these doubts, they are the investor’s doubts. The only
way to address doubts is to provide credible and logical information. That is how investors reason.
You need to provide credible analysis to investors that are logical and support any claim they have
against your business. That is the only way to support any doubt that an investor may have about
you. You can’t sweep them under the carpet.
1.3.4.3 Expectations
The third thing that investors think about risk and react to it is expectations. Now investors will
expect a reward to their investment for the risk that they take. This is natural and if you are the
investor. the same thing will be your expectation. The rewards need to be worth the risk, else the
investors may not invest. So, when you are pitching to an investor, he/she may be thinking “what
will be my return on the investment? Or how much ownership stakes do I get on my investment?
Or how much interest are you willing to pay for the loan, that’s if you are taking a loan from the
investor or a bank? Do I get a sit on the board of directors of the company? For some investors
that may be their interest. They may want to play an active role in the operations of the business.
When will I get my money back? This is one of the most common expectation from all investors.
You may be giving a very nice presentation which captures the mind of the investor. But mark
you, at that very spot, the investor is no longer with you. He/she is calculating how and when, will
he ever get his money back. This is very serious. So, remember investors want a reward for the
risks they are taking. Therefore, you need to gauge their expectations and be sure you can meet
them. There is no point making promises, you can’t meet up with, else you will be creating
problems for yourself down the road. If the reality of your business can’t match the expectations
of the investor, then you could be talking to the wrong investor.
1.3.4.4 Skepticism

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The fourth thing that investors think about risk and react to is skepticism. Skepticism is very similar
to doubt but I want you to see it form a very different way. Most professional investors are skeptics
sometimes. It’s in their nature to be skeptic. It is common for them to play the devil’s advocate
like what if, what if, and all the what if. I think it is a very sensible role because investors need to
ask some critical questions which the entrepreneur may not have thought about. But what is most
important to watch out about skepticism is that sometimes it may not be voiced, thus you need to
observe their body language. If you are making a pitch or a presentation, then in the process of
your presentation somebody puts the head down, it demonstrates some level of disappointment.
So, you need to understand all these, and one good way is for you to always ask them for questions.
Because questions are very good way to get all these hidden emotions to come out so that you can
address them. You may not want all these things locked up in their head because, the only way for
you to address them is to give them a way to voice it out. So, as investors go through your business
plan, many interested investors could be thinking, these financial projections don’t look realistic.
Some may even tell you; you don’t have what it takes to compete in that market. Others may ask
you; how do I know you won’t squander my investment? In this case, you need to show that you
have a sensible commitment for spending every dollar you get and show how it leads to the growth
of the business. Another point of skepticism could be, I don’t think anybody wants to buy what
you are selling. This is a skepticism that is valid and you then have to address it in a convincing
way. And the best way to respond to skepticism is to use sound logic and reasoning to explain
yourself. Do not be carried away by optimism like responding back by saying no I don’t think that
is true or it won’t work in this case. If you are carried away by that sort of buoyant optimism,
investors may start to assume that you are not realistic and impractical and of course you may not
get their investments.
1.3.4.5 Questions
The fifth way investors think about risk is questions. These are very important because, investors
use questions to get more information from you and gain a deeper understanding of your business.
These is how they identify, understand and analyze the risk in your business. So, after you make
your pitch, always ask for questions. That’s a good way to get into their mind. After making your
pitch, these are some of the examples of the questions that the investors may want to ask you. What
is your strategy for selling the product? If they are already similar products in the market to which

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the consumers may already be loyal, why will consumers buy your product? What assumptions
are behind your financial projections? Usually the plan always says we are going grow by 50% in
the second quarter, and by the third quarter, we will grow by 80% in sales. It makes a lot of sense.
But on what basis are you making such claims? How sure are you, that this is going to work? How
do you know that it is going to happen? Recall that when the investor is asking you for such
questions, he/she does not mean you are wrong. They just want to understand the validity of the
basis of your judgement. They want to know; how did you get these figures? Another question
they may ask you is, what will you do with all the capital you are asking for? How will you
judiciously spend the capital of the business? You can’t just go and ask for 1million dollars! What
exactly and how precisely are you going to use the money you are requesting? The most interesting
is that, when these questions come up, entrepreneurs easily explain with confidence how they pay
their staff, and themselves and other expenses included. The moment that shows up, it signals
something very dangerous to the investors. The investors may then be contemplating that, this guy
is wanting to use my money to pay himself and live a comfortable life while my money will be at
risk. So, investors use these questions to actually find out what you are up to. They also ask these
questions because they want to be sure that you have considered all the angles of your business.
Some of these questions may catch you off guard.
So, these are the ways that investors react to risk. These behaviors will show up every time you
approach a potential investor. Some of these things will be going on in their minds and hidden
from you, some will be spoken. Whatever be the case, you have to prepare yourself very well with
reasonable and logical responses to convince the investors.
1.3.5: The 7 Critical Risk Categories
The issue with entrepreneurs is the fact, they are always on a haste. It is important that you take
your time and prepare yourself very well before going to meet an investor. If you rush and meet
an investor only to fumble during your presentation, what makes you think that the investor will
be willing and ready to give you the second chance? So, preparation is much more important than
you seeking for audience prematurely. Don’t approach until you are ready, and until you are done
with all of what I have shown you and will still show you, plus your personal effort, don’t ever
think you are ready. This is because, investors will ask you questions that may make you feel
frustrated and may even make you start doubting your own project. This may end up with you

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abandoning the project. The seven critical risk categories are summarized below but we shall be
laying much emphasis on them on the second module.
1. Market Risk: This is one of the big risk areas. Sadly, this risk affects most entrepreneurs.
2. Competition Risk
3. Execution and operational Risk
4. Financial Risk
5. Legal and regulatory Risk
6. People Risk: This is very important. It is often said that, investors don’t invest in businesses,
they invest in entrepreneurs. It is true. The inability to manage this risk, can bring about a total
failure in the entire system.
7. Systemic Risk: Many entrepreneurs are totally blind to this one because they are focusing only
on their business, meanwhile, there is a whole lot more at stake.
The risk I just showed must be included in your business plan. If they are not found, then it becomes
necessary that you include them in your plan or pitch before meeting the investor. In the next
lesson, you will be getting a full detailed explanation of each of these risks.
1.4 Conclusion
Every business needs money to succeed. That’s where the investors come in. But should the goal
only be to leverage investors as a source of funding? Of course not! But what else besides money,
do investors have to offer? A fast-growing startup has a million needs. Therefore, a part of the
investor’s money, the entrepreneur needs a smart investor who will guide and orient the business
to growth. There’s been a growing trend around Smart Investors and Smart Money Funding
recently. Smart Investors as those bringing useful skills to the deal, beyond money. The ideal
investor has good knowledge and/or background in the sector and has small business operational
experience. Thus, building an investor base who understands and shares the company vision and
then will work with you to achieve that vision is an asset far beyond just cash.
1.5 Summary

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In summary, I have shown you the risk perspective of investors and entrepreneurs and how both
parties react towards risk. I have also shown you the five blind spots that affect most entrepreneurs.
I have also presented to you the five ways that investors react to risk. And we have ended with a
brief introduction to the seven critical risk categories investors always look out for. I hope you’ve
learned some interesting things and I also hope I have opened your eyes to some critical aspects in
your business that maybe you have been undermining. Watch out for module two.
1.6 Review Questions
1. Define the following terms
a. Entrepreneur
b. Investor
c. Risk
d. Competition
2. Most investors complain that it’s hard to find good businesses to invest in. Entrepreneurs, on
the other hand, complain that it's hard to find investors who are willing to invest in their business.
What is the reason for this mismatch?
3. Thinking like an investor is the new, logical and predictable way to raise capital. Explain how
this approach significantly reduces the stress, confusion, frustration, disappointment and
unpredictability of raising capital.
4. State and explain the 3 critical entrepreneurial master pieces to keep in mind.
5. Entrepreneurs are often too excited, passionate and optimistic, that they sometime become blind
to some important aspect to their business. Discuss how entrepreneurial blind spots manifest
themselves.
6. State and explain the common entrepreneurial blind areas that affect most businesses.
7. What will your customer do with his/her money if he/she does not buy from you? Discuss
8. State and explain how investors react to risk
1.7 References
https://www.allianceofangels.com/2020/02/19/entrepreneurs-benefit-smart-investors/
https://www.goodworks.in/entrepreneur-needs-think-like-investor/
https://www.forbes.com/sites/alejandrocremades/2019/02/21/20-questions-entrepreneurs-should-
ask-investors/#6ac3bc4d7670
https://www.inc.com/diana-kander/5-key-insights-to-how-investors-think.html

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https://www.inc.com/melanie-deziel/why-every-entrepreneur-should-think-like-an-invest.html
1.8 Task
❖ Read the notes on unit 1.3.4 (How Investors react to Entrepreneurial risk) and make a brief
summary of not more than half a page
1.9 Reading Assignment/Suggested Readings
❖ Read this article titled “Good works (2018), Why an Entrepreneur Needs to Think Like an
Investor” from the website of good works, accessed from
https://www.goodworks.in/entrepreneur-needs-think-like-investor/April 16, 2020
1.10 Reading Assignment Supplementary Source
❖ YouTube Video lecture: HOW the World's Most Successful INVESTORS Think
❖ Video Highlights: - Sharing advice from some of the world's most successful investors!
❖ Note: To access the video, copy and paste this Playlist
❖ URL: https://youtu.be/kW3av7LKhTo?t=8
❖ Source: https://www.youtube.com/watch?v=kW3av7LKhTo. Retrieved 16 April 2020.
1.11 Written Assignment
Thinking like an investor is the new, logical and predictable way to raise capital. Explain how this
approach significantly reduces the stress, confusion, frustration, disappointment and
unpredictability of raising capital.
1.12 Discussion Assignment
What will your customer do with his/her money if he/she does not buy from you? Discuss
1.13 Graded Quiz
Will be provided by the end of the lecture

How to think like an investor

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