Communicating with investors entails building trust, being clear and showing confidence. What you avoid saying is of equal importance to what you disclose. Using certain words can even give doubts, despite the credibility of your idea. Following points discuss usual no-no’s, with everyday vocabulary that helps you sound organized and professional.
This Can’t Fail
No business venture is without risk. Claiming so is not credible. Investors foresee difficulties and would rather have honest thought than overconfidence. Having confidence in your thoughts is good but over confidence is not.
I Haven’t Looked at the Numbers Yet
Let me ask you this, what’s important in business? That’s right, cost and revenue are important to discuss at the earliest. Investors expect to grasp the basic understanding of costs and revenues. Being ignorant about numbers gives the impression of lack of preparation and poor planning.
Everyone Is Our Customer
Everyone is not the answer. It is because each business targets a specific audience. Investors wish to know precisely for whom you are developing the product. A clearly defined customer base signifies stronger reasoning.
We’ll Figure That Out Later
It’s okay if you’re facing constant problems but leaving those problems without finding answers may cause you risks. Answers that are not clear cause doubt. Even if the plans change, it is more important to show some direction than saying nothing is decided.
My Idea Is Totally Unique
Very few concepts can be avant-garde. The main concern of the investors is the implementation of the idea rather than its originality. Acknowledge the competition in a composed manner.
We Don’t Have Any Competitors
They are stupid who say this statement. Every business or idea has a competition or competitor in the market. There are always substitutes in every market. Investors expect you to be aware of the other players in the market.
I Just Need the Money
This gives the impression that financing is the only option. Venture capitalists want to know how money will not only help shrink the business but also increase its area of operation.
I’ll Handle Everything Myself
It’s good to say this but you’ll need a team that can help you achieve your objectives or goals. Investors prefer teams, or at least plans for delegation. A delicate balance is, therefore, required.
I’m Not Sure Why This Isn’t Working Yet
Sometimes success doesn’t come in a way as expected. Lack of clarity about the problem does not impress investors. They want to see learning, testing, and adjusting even when it feels like everything is still at an early stage.
