What not to say to a possible investor

What not to say to a possible investor

It is essential that an investor understands how an entrepreneur thinks and trusts in your ability to grow a business. These are the basic requirements to attract your interest and establish a relationship of trust between them. But, according to Alejandro Suárez Sánchez-Ocaña, entrepreneur and investor, with two books published in Spain there are certain phrases that when spoken by an entrepreneur, undermine this goal.

1- “Looking for someone to finance my project”

It’s a bad conversation starter. The investor wants to invest and not to fund. If you need help it is best to find a patron. If you want to be funded, look for a bank.

2- I want someone that brings intelligent capital, more than money

A business angel wants to monetize money and can not sit on a day-to-day manage business. If I wanted to run a business also i would not walk again and released to invest in others.

3- My product has no competition ”

This is a highly dangerous phrase. Half the time that entrepreneurs say this or are underestimating the competition or, worse, ignoring the market. If the product does not have the same competition, or is a visionary scale of Steve Jobs, and enters the story (which, admittedly, is not often)….

4- Our forecasts are very conservative ”

Here is something that investors hear too often and that leaves them immediately alert. Tell them the experience that even entrepreneurs who consider themselves conservative, discover after a while that they were too optimistic. So it is normal that the investor is, he rather conservative and apply a reduction in over their predictions.

5- This is a riskless investment, fully guaranteed ”

The investor wants to earn a lot of money and not only help create a sustainable SMEs, which guarantees a good salary to the entrepreneur. In order to win real money, there must be risk. If it says there is no risk, or is lying or not you are proposing a good deal, but to make him lose time.

6- I need a quick response ”

Pressing one investor telling him that there are others interested in the project and that he has to decide quickly is halfway to make you lose the will to even think about it. And remember that if you lie, and stand empty-handed, hardly again have another meeting with him.

And some others things but here stays the tip 😉


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