There are some things you say to a potential investor, and some things you don’t. By investor, I mean anyone who you are looking for help from.
This includes, banks, consultants, advisors, and even potential partners and employees.
Guy Kawasaki wrote a great list on Entrepreneur.com about things you should never tell an investor. Some of them are common sense, but important nonetheless.
10 Lies VC’s Know About:
- “Our projections are conservative.”
- “(Big name research firm) says our market will be $50 billion in 2010.”
- “(Big name company) is going to sign our purchase order next week.”
- “Key employees are set to join us as soon as we get funded.”
- “No one else is doing what we’re doing.”
- “No one else can do what we are doing.”
- “Hurry, because several other VC firms are interested.”
- “Oracle is too big/dumb/slow to be a threat to us.”
- “We have a proven management team.”
- “All we have to do is get 1 percent of the market.”
I know that in hearing different entrepreneurs pitch their business ideas (as a consultant), I hear a few of them pretty regularly. The most common being number 10.
When a entrepreneur says that single statement, a noticeable shudder goes through the crowd. In fact, if you ever hear someone say that, immediately take a look at the investor.. It is pretty funny.
For more info and explanation, check out entrepreneur.com.
