Top Fantasies of Pitching #1
that Entrepreneurs tell Investors [ marked with “I” ]
compiled by Peter/CXO 2/13 with my Wiz4.biz Comments marked accordingly
1. Our Projections are Conservative. [I] You actually have no idea. It’s your best guess. [Wiz4.biz] = [Wiz4.biz Comment.] You don’t want to be too low and make the deal not interesting. But, if you’re too high, the Investors will think you’re delusional !!!
2. A well-know Company is going to place an Order soon – “or as soon as we get Funding” – to make it appear that your Sales are about ready to “explode”. [Wiz4.biz] Investors will only accept the “reality” of having the order in hand.
3. Key Employees are set to join us (once we have our Funding). [Wiz4.biz] Beware that Investors may call these people – to find out if it’s real – in their Due Diligence.
4. No one does, what we are doing. [I] a) If truly, no one is doing it, is there a “market” for your product? b) You either didn’t do any search (or as thorough a search, as you needed), to find your Competition. Maybe you didn’t consider alternative ways of “doing what you do”, in your research. [Wiz4.biz] If you have a good idea, several companies may already be doing it. You have to offer a better Product/Service, at a competitive $$ and let many people know about it.
5. No one else “can do”, what we are doing. [I] Is this ignorance or arrogance? What are the Barriers of Entry? [Wiz4.biz] Stay in the “Stealth-mode”, until you’re fully ready to make your big splash in the market. Then you have to figure out, how much time & effort you need, to get the Market Share – before someone else does (ie, with a “me-too” product). Go for it !!!
6. Telling the Investors, “You’ll have to make a quick Decision”, because we have several other Investors interested. [I] If you do, why haven’t they Funded you yet? [Wiz4.biz] Do you have a problem, you’re not telling Investors about? Try to make your proposition irresistible, instead of trying to force Investors into a decision.
(Continued on Premium Content)