10 phrases that will ruin your chances of getting investors
For an entrepreneur who has prepared for months (some are mature for years) a project, when an investor presentation to be tense. You can lose focus of what investors want to see in a presentation:
1- That your project is invertible and scalable: there are going to assume that they can earn good money by investing in your startup
2- You’ve done your homework: the project must be seamless and improvisations
3- How will you make money with your activity?
4- How money flows through your financial statement
5- They have developed a sustainable competitive advantage
There are certain phrases that show you are far from meeting these 5 points in the same presentation:
1- “My project needs funding” which will answer the investor the right place for that is the bank that he wants is to get profitability. Clearer statement, which is not to finance anything, wants to make money with it.
2- “First of all we would have to sign a confidentiality agreement”: what will happen there is no sign it and that is to start on the wrong foot as this is seen as a lack of confidence with the inverter input. On the other hand, it is that an idea is not validated, contrary to what some people think, is worth $ 0.
3- “This business plan is just a draft” or what is the same has not had time to make the final. What I will recommend is that you’re done and fix your appointment then.
4- “We have no competition” said that two things can happen:
– Who do not really have and know the market in which you compete yes
– You’re right and that really creates a lot of uncertainty for investors
5- “Our competitive advantage is that we specialize in this” investor will think that’s no guarantee of anything and therefore there is no strong competitive advantage.
6- “With a ridiculous market% win money, so it will be easy” investor response: “Ah, well, that’s like saying you’re going to remove 50,000 customers”, that looks bad dialogue don’t you think?
7- “We planned everything negative that can happen” that will be seen as folly by the entrepreneur. No one can predict what can happen and less on projects such as the Internet.
8- “Our product is better than what is on the market” and that leads to two concepts:
– That better not mean that sold
– What is to be sold is not known until it reaches the market and validated
9- ” You really do not need the money” then why the meeting with an investor?
10- “The most important thing is the view of business that we have”: this phrase itself is not bad at all but investors what they think is you consider that more important than the action plan you have thought. Because we’re the same, as you plan to make money?
In my opinion, what is wrong many times we want to impress in excess of the investor so that it does not think twice and invest unblinking. When we do that we lose naturally when what is that we can explain the business itself as if it we explained to a friend. There simply to explain simply and clearly to market want to attack, what is your competitive advantage and what are the processes that you earn money return the invested money and most importantly, getting the long – awaited return that investors expect from your business.