Investors say “NO” nine out of ten times. If you want to get a “YES” from your investor, never mention these five things during the pitch meetings.
Funding your dream business is one of the hardest hurdles you will ever face during your venture. Pitching your brilliant idea to so many investors, and getting a “NO” can make you feel miserable 🙁
Check if you are saying any of these five stupid things during your pitch meetings. Maybe that is what holds you back.
“We have no competition for this business.”
“We are outsourcing this or that.”
“There is nothing proprietary about our solution.”
“Other team members will join in the later stages.”
“We don’t have any personal investments for this venture.”
Why saying these five stupid things won’t help you to get “yes” from an investor?
1. We have no competition for this business
This is one of the dumbest things you can ever say. Having no competition means that your brilliant idea has no current market (or, you don’t know how to do market research).
When you don’t have an existing market for your solution, you have to create one. That comes with a lot of uncertainties. It is actually good to have healthy competition for any business.
So, rather than trying to create a new market, you can build your selling propositions to address an existing void in the marketing. Pick an unmet market need, and develop a solution around that.
2. We are outsourcing this and that
As soon as you introduce a new product to the market, you may have to do rapid changes to your product, based on the market feedbacks. So, if you have outsourced a core process, that means you have to pay to another party, every time you have to make a change.
Well, obviously you cannot wear all the hats in a business. So, if there is something that you cannot handle, partner with someone who can.
For example, if your business is a new mobile app, you need someone in your team to look after the app development.
3. There is nothing proprietary about our solution
If you don’t have any intellectual claims for your solution, you cannot protect your business from the business vultures. Once your business got some traction and started doing well, there will be plenty of other people, who will just copy what you did.
Always remember that there is a bigger fish in the sea. If you don’t hold any rights, you will not be able to hold on to the profits. Someone bigger will come and steal it from you.
4. Other founding members will join in the later stages
Investors always use the passion and dedication of the founding members to evaluate the safety of their investments.
All the founding members need to be there from day one. Everybody needs to be actively involved in each step. If someone is going to join after the funding stage, it looks like that person is not sure about the venture. So, at least try to be there for the meetings.
5. We don’t have any personal investments for this venture
If you have invested in your own startup, that shows your confident about the business. So, investors know that you have a financial obligation to make it successful. Also, they will understand that the founders aren’t going to abandon the process, even if it gets tough.
The amount you need to invest depends on your business. All you have to do is, show your commitment to your own idea. And, help the investors to build their confidence, about their investments.
Get the YES from an investor
Your new business idea is your dream. But, for an investor, it is just a risk analysis. They will not evaluate your pitch with emotions. They need confirmations about the process, dedication, and safety.
By saying these five stupid things in your pitch meeting can spoil everything and will get a “No” from your investor.