Saturday, May 28, 2011

Do we understand our investors? How?


The biggest challenge with applying Maslow’s theory of human motivation is convincing yourself that all investors are human. 

While investors often are seen as robots who are only focused on profits and the bottom-line, they have a collection of other needs as well and great companies and entrepreneurs are able to use this pyramid to understand the survival needs (having transactional alignment on the business plan) and the success needs (having relationship alignment with the recognition that this is a long-term collaboration). 

There are investors who feel self-actualized as a result of putting their money where their heart is. We call these legacy investors and they have pride of ownership associated with making an investment that has returns or results beyond their own personal needs.



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