Business Magazine

The ROI Investor

Posted on the 17 February 2011 by Cameronchell

When you think of an investor you will more than likely imagine an ROI Investor. Not that each is going to be your typical Wall Street wolf, but their concern is going to be based around how much they will get back on their investment. That is the fundamental of an ROI Investor, it’s even in the name, Return on Investment.

However, knowing where your focus is and understanding why your focus is there are two completely different things and we’re willing to put our stake in the ground and say that understanding is more important by far. Knowing that “if I’m an ROI Investor I focus on my returns” is not enough, there needs to be an understanding of why you are focused there and what drives that attention.

To do this you need to determine the number one characteristic associated with different types of investors. Each type will exhibit similar tendencies and characteristics but each will showcase one far stronger than others. For you, as the ROI Investor the characteristic that will present itself most strongly will be your tactical nature.

The focus for you is on the structures in place that produce the numbers. As this type of investor your interest is peaked when you see documentation about sales and project (or actual) revenue, the expected margins, financial forecasts, models and exit plans. Not only do you want to know what your upside is going to be, but it’s imperative for you to know the numbers so you can limit your downside.

For many it comes down to the science of understanding numbers. The cause behind the startup, the management team or the ideas play secondary roles, if any when consideration is being given to an investment. It invariably comes down to what the numbers tell you for the investment’s financial viability and what can you plan to get as a return.

If you are an ROI Investor this is typically what you focus on:

1: The CFO – You want to know who they are, what their strategies are what their successes and failures in the past. Your concern is the money; your focus is on the Chief Financial Officer.

2: Worst Case Proformas – Your concern is the money, so you’ll want to see the expectations these startups have for current and future performance. Above that, you want to see what their worst case scenarios are.

3: Liquidation Value - There’s a reason you want to see the worst case proformas, you want to know what will happen if you have to get out or when you get out.


I confirm the subscription of this blog to the Paperblog service under the username cameronchell

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Emojis Can Be Used to Show Intent ?

    There has been a lot of talk about emojis when it comes to domain names. It now seems that they are moving their way to be used in court proceedings. Read more

    6 hours, 41 minutes ago by   Worldwide
  • French Onion Chicken

    French Onion Chicken

    I have long been a huge fan of the flavours of French Onion Soup . . . caramelised onion, sweet and succulent . . . cheese . . . toast . . . garlic . . .... Read more

    7 hours, 41 minutes ago by   Mariealicerayner
  • Suffer the Little Children - Manchester Monday

    Suffer Little Children Manchester Monday

    As on other occasions recently, I find myself unable to write to theme for this week's blog. In fact I have been sitting here for over an hour trying to find a... Read more

    9 hours, 8 minutes ago by   Ashleylister
  • Pandan Chiffon (cooking Method)

    Pandan Chiffon (cooking Method)

    这是我吃过的最好吃的班兰戚风!不夸张,没骗你。这个戚风蛋糕体真的是鬆软到可以做瑜伽,忍不住要小心翼翼地捧在手心。一口一口吃到班兰和椰奶的香,太棒了!Pandan Chiffon (cooking method)(recipe adapted from Wen's Delight)Ingredients:5 egg... Read more

    11 hours ago by   Cathysjoy
  • Chris Blue Winner of The Voice Debuts at No. 1 on Hot Gospel Songs Chart

    Chris Blue Winner Voice Debuts Gospel Songs Chart

    ChristianNews You better let your light shine Chris Blue!!!!!! The  12th season of NBC’s The Voice winner Chris Blue — a worship leader at Cokesbury United... Read more

    The 24 May 2017 by   Firstladyb
  • Movie Review: ‘Guardians of the Galaxy Vol. 2’ (Second Opinion)

    Movie Review: ‘Guardians Galaxy Vol. (Second Opinion)

    Movie Review: 'Guardians of the Galaxy Vol. 2' (Second Opinion) Plot: Set several months after the events of the first film, the Guardians of the Galaxy are o... Read more

    The 24 May 2017 by   House Of Geekery
  • Bravery is an Option, Not an Obligation

    It’s interesting to note that in a world where people constantly claim anyone with a conscience or a complaint is being a “special snowflake”, stoicism is... Read more

    The 24 May 2017 by   The Guyliner