Entrepreneurs make mistakes, so you’ve got to read this blog. It’s advice straight from the investors. Just about every investor I’ve spoken to in the last three months has vented his frustration about entrepreneurs who just don’t listen.
What do they mean?
Well, these days, entrepreneurs who want to raise money can access all they need to know about pitching. Yet too many entrepreneurs either don’t find out what they need to do or they don’t take the advice. And that is frustrating the hell out of investors.
Investors want to give you their money because then they can make more money. Simple.
But first, they need information from you. There is a formula and all investors need you to explain what your business is all about and how they can get a good return by investing.
Entrepreneurs are making rookie mistakes. They are making mistakes that the beginners make. Simply not good enough. Every time you do this, it’s like waving a “red flag” in front of the investor.
You are saying: “Look, I don’t really know what I’m doing but here’s some stuff that you might like to hear.”
You need to find out what investors want to hear in a pitch.
Every time a red flag appears you lose credibility and the investor loses interest. Here are the six most common red flags that turn investors off:
- Your wander off at a tangent during your pitch.
- You don’t really explain the competition. And if you say there is “no competition” then you might as well just pack up and go home!
- You don’t listen to the investor’s questions.
- You have unrealistic valuations.
- You spend too much time explaining the technology/product.
- Lying and bluffing. And this happens more than you think! Entrepreneurs may call this “exaggeration” but the investors are just not that understanding!
You know how much difference an investor will make to your company. With investment, you can get the resources you need to create the company of your dreams. It is too important to go in waving red flags. Do your homework and you’ll certainly be more successful.
Till next time.
To read more Gail Geronimos blogs, click here.
Franco Schena from Red Noise writes: Really enjoyed your latest comment. You mention there is a formula. Are you able to please direct me to where I can find it? I’ve a number of projects requiring investment and want to deliver relevant information to these potential investors.
Gail replies: We’ve set up a website for entrepreneurs looking for investment. Check out pitchingtoinvestors.com. Lots of resources there. I’ve developed a pitching product based on the formula so go to Products/Services to read more.