With all of the investment opportunities that are available, how does a private investor make the selection of who, what and when to invest in a particular project? If you speak with an average private investor and ask how they made the decision to invest, they will tell you they rely on their instincts as much as their due diligence. Of course they investigate management looking at past history, achievements, successes and accomplishments along with the overall business concept that must make sense are taken into consideration. Paying attention to the benefits of investing is extremely important too. But it’s that feeling in the pit of the stomach that seems to cause the decision. Does it feel good?

All private investors are looking for that “home run” investment opportunity that will provide them with a return on investment of ten times or more the initial investment within a short period of time. How often does a home run occur? More often than most private investors realize.

When the Body Shop needed a small amount of seed capital to launch the distribution of their body care products, Ian McGlinn invested $8,000 in the company.  He knew the potentials were there for a home run, but not the magnitude of the potentials. When he exited the company he had earned $80 million.

When Steve Jobs, Co-founder of Apple Computer needed funding and found an individual who invested $91,000 no one would have thought that years later that investor would realize $154 million. When Thomas Alberg wrote his check for $100,000 to Amazon.com in their conceptional stages, there was a feeling that he was on to something big. His return was over $26 million years later.

What are the possibilities of you finding a company that is in a startup mode that you can invest in that can give you the kind of return that others have enjoyed? They are out there and if you understand and know how to evaluate and rely on your intuition you too can reap the rewards and prosperity of a private investor.