You have successfully secured an appointment with an investor. It’s the big day! You have prepared your presentation. So don’t lose sight of the benefits of this meeting by avoiding classic mistakes. There are actually 3 things you should never say to an investor!
“We have no competitors”
Wanting to do well and show that their project is unique, many entrepreneurs say they have no competitors. It not only defames you, but is also a liar. Here’s the reasoning there would be an investor for whom you declare no competitors:
- , They didn’t do their market research ,
- , There is no market: If there was a market, there would be competitors because there is no reason for you to be the first to have this idea. ,
- , You haven’t defined your market and you don’t know it very well. » Competitor is not necessarily the same product or service as you: If you are planning to set up a spa in an area where you will be alone, for example, your competitor may do other leisure or relaxation activities (massage room, sports hall. ..)
- , If your technology is super innovative, there’s always a competitor… This means that your customers will always like to change the status quo in the beginning. Signing up for an innovative product is a challenge that takes time.
In short, any project has competitors, be it direct and/or indirect. Not identifying them is telling your investor that you don’t know your competitors or your customers (because you don’t know what they’re buying). Remember: having competitors is reassuring! This shows that the timing is not bad. Being alone in the market can be a sign that the market is not ready to welcome you.
» We are the best in everything…! ,
, We are the cheapest, most qualitative, most admired with best customer service. We have no faults and we are the best at everything “. Many Entrepreneurs Wants to position oneself by signaling to beat the competition on all key parameters of their product. This is a deviation! It is impossible to be excellent at everything. On the other hand, when you want to position yourself, that is, differentiate yourself from your competition, you don’t have to be the best at everything, but choose three key characteristics on which you will beat the competition. The operating system for the iPhone iOS does not outperform Android on all points. McDonald’s doesn’t have a quick dominating all criteria. But his position is clear.
When you’re trying to sell yourself in an interview, you’re not going to say, I’m a good teammate, I work hard, I’m tough, selfless, kind and I also know how to cook, make good coffee, and I’m an excel pro “. Your message will be drafted. For the position you are aiming for, you are only going to emphasize three key qualities. When pitching an investor, use the same logic. 3 Key Features of Your Service Emphasize the things that allow you to win the battle.
“Our company is worth 5 million euros and we are looking to raise 1 million.”
Very confident about themselves or willing to show that they’ve built their business plan to the end and that they’ve mastered the financial foundations and subject matter, some entrepreneurs prompt an evaluation during their pitch. This is a mistake though:
- Evaluation is the final stage. We can agree on evaluation only if we agree on action plan, objectives, business model etc. However, when you pitch to an investor, you are above all your project and your team.
- Evaluation is a conversation. So she intervenes only after several meetings. To indicate a certain number is to risk indicating, from the first meeting, your interlocutor. You can be completely turned off. Also, after several meetings, perhaps your funder has convinced you to change some assumptions of the business plan (and therefore change your valuation).
On the other hand, if an investor asks you one number to keep in mind. This may be to test your practicality and see if your head rests on your shoulders.
Take care to avoid some of these mistakes so you don’t receive an email” That we thank you for your presentation and your project but we will not proceed on this pitch. We wish you good luck in your fundraising. ,