7 Ways to be Shown the Exit by Investors

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There are some things you should never say in an investment pitch. These will instantly kill a potential investor’s interest.

Here’s what to say if you want to be shown the door (seriously, don’t say these!):

? “We’re first to market.” You might see this as a huge advantage. But investors don’t see things that way. They’re looking to minimize their risk, and being first to market makes you a risky investment.

? “There’s no competition.” By saying this, you’re revealing one of three things to investors: 1. You’ve not done your research; 2. You’re willing to twist the truth; or 3. Others have tried to do what you’re planning, and failed.

? “We need to raise a million dollars.” If you say this, investors will ask you to find a way to get started with a smaller, more tightly focused project. You’ll have to show serious market potential before any investor will part with a million dollars.

? “We’ve got more features than any competitor.” Investors don’t care about features. They want to see that you’ve done your market research, and that you’re developing a product that people want.

? “We’re sure that if we build this, people will buy it.” You’re not in the movies. To shift products in the real world, you’ll have to work hard on your marketing. Investors will want to see a serious marketing plan.

? “We’re good at lots of things.” Translation: “We’re not all that great at anything.” Investors would much rather hear the one thing you’re really good at, the thing that makes you stand out from the crowd.

? “The big players in the market are too slow to make the most of this opportunity.” The truth is, big companies have a ton of resources to invest in new opportunities. If no big companies are competing in the marketplace you’ll be entering, investors may wonder in the market is too small.

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