Financial investment hacking: key tools for entrepreneurs

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Passionate life hacker Chris Hutchins has built his career around financial optimization. As a former Investment Banker and Founder, Hutchins is the Head of New Product Strategy at Wealthfront, where he focuses on creating products that will help clients build wealth by investing and hosting the podcast. by All The Hacks.

Passionate about sharing some of the most useful life tips in business and everyday living, Hutchins discusses his top tips for trading in the investment world – almost all of which can be applied to a wide range of business scenarios.

Start the process

According to Hutchins, the process should always start with deciding what type of investment you want. Are you looking for friends and family to invest small amounts or are you interested in large investors? If the answer is the last, it is important to do your research first to understand what game you are playing.

“The most important thing is to understand the process that is going on and to try to play in that process,” explains Hutchins. “Don’t play the game you think will work. Do your research, then play the game you know will work.

Second, Hutchins encourages companies to create an exciting “race” dynamic – a dynamic that creates the perception that the company is in high demand – thus inspiring investors to act quickly.

“Make a list of everyone you want to talk to and make sure you have enough connections to be able to present. Then try to start everything at the same time, ”shares Hutchins.

The importance of time should not be overlooked, as it encourages entrepreneurs to lock in a specific period, say three weeks, for a particular investment project.

From there, Hutchins recommends keeping all investors on the same schedule. For example, he would avoid having a second meeting with one investor in the same week as a first meeting with another.

Go to Yes

According to Hutchins, two key elements of raising capital for any business are telling stories and selling yourself. Any new investment opportunity, even job interviews, can ultimately boil down to being nice. Beyond that, Hutchins emphasizes passion and competence, two qualities that investors will want to see.

As he explains, “Starting a business is really hard, but it gets even harder. Investors look for entrepreneurs who are truly passionate – as long as they believe they are ready to fight in tough times. ”

Being passionate and likeable is often correlated with extroversion; However, Hutchins has recommendations for entrepreneurs who may consider themselves more introverted or low energy.

“There are different ways of owning the coin,” shares Hutchins. “You can do it with skill. You can share what you’ve learned and why you’re turned on in a cool, calm way.

Likewise, he thinks it’s just as powerful for entrepreneurs to listen intently and prepare thoroughly for the presentation, even taking the time to anticipate any questions an investor may ask.

The role of trust

Following an initial meeting, it will be essential for entrepreneurs to cultivate the momentum that will lead investors to believe that a business is a highly valued commodity in the market. It forces entrepreneurs to play a difficult role: pretending they don’t need an investor’s money when they really need it.

“I try to do it in writing. Keep it short, ”Hutchins shares his strategies for staying confident. “I’m trying to get myself into the mindset: what would I do right now if ten investors told me we want you to give each other money? “

In more general terms, these same strategies can be applied to other scenarios, including an interview for a new job. It sounds counterintuitive, but asking a potential employer for an interview because an offer is already on the table might make them wonder if they are moving too slowly for a prime candidate.

That said, Hutchins also doesn’t encourage entrepreneurs to lie or totally distort their offers.

“The last thing you want is someone to find out your lie – so be careful with the risk,” he warns.

Regardless of industry or professional goals, for Hutchins successful negotiations come down to sympathy, preparation, and showing that a person or product is in high demand. To learn more about finance and trading tips, visit www.allthehacks.com.

For more on trading financial investments, listen to Chris’ full episode here.

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