– Entrepreneurs and Investors Can Learn From Each Other –

Entrepreneurs are passionate about their business, but does passion translate into success?

In this scenario, a first-time entrepreneur has just launched a new business. While the business idea is timely and interesting, the enthusiasm high, and the hours long, the “solopreneur” begins to spiral into debt with minimal sales to show for the effort.

He needs help, but investor friends, who had initially expressed enthusiasm for the idea, decline to get involved.

What went wrong? If the idea was great and necessary, shouldn’t it succeed? Not exactly and here’s why: This entrepreneur didn’t think like an investor.

While investors originally favored the idea, they witnessed the business’s decline firsthand. They saw an entrepreneur who had a great idea but no strategy – and no clue how potential investors would ultimately make money.

Although the original business idea may still appeal to them, without a business plan that includes a strategy and short- and long-term goals, there’s no indication this entrepreneur can succeed.

No one – not even a friend – wants to invest in a failing business, however passionate its owner.

It is important for entrepreneurs to factor in this perspective, taking a page from investors to pair passion with winning discipline.

On the other hand, investors should keep in mind that driving passion is a key measure of success. No one will work harder than the original idea man.

Perhaps these investors can direct their friend to a coach who can help this passionate and hardworking entrepreneur think more like an investor. So everyone wins.

Picture Credit: Flickr