- March 30, 2010
Warren Buffett is credited by some (Answers.com included) for coming up with the term ‘skin in the game’ which basically means investing your own money in your company. By doing so you are proving that you believe in your company and it’s eventual (if not present time) success.
Investors, including banks and angel investors like to see that you have some skin in the game as well. It makes sense, if you’ve put $20,o00 of your own cold hard cash (or credit) into your company, it acts as a show of good faith. You believe it will work and have a vested personal interest in the companies success.
I like to add emotional and physical to my own equation of skin in the game. Time spent + sweat spent + sleepless nights spent + money spent = Skin In The Game.
How much skin do you have in the game?