Entrepreneurs guidelines: to scare away investors 10 promotion methods

many new entrepreneurs to them to devise new ideas often very excited, they know that can’t help but to contact every investor, think they will be as excited, and want to pay immediately. There are many new entrepreneurs will strive to develop a business plan, and indiscriminately mailed to each potential investors on the Internet. The two methods are wasting as entrepreneurs and investors of your time.

the best professional investors will receive dozens of investment promotion book every day. Therefore, in the credibility and development potential of the evaluation of investment projects, they are used to refer to the quantitative data, rather than entrepreneurial passion. In addition, they also tend to oneself once knew, or others enthusiasm for introduction of entrepreneurs. In addition, if you can prove that he had to create a successful startup, and sold at a price of $800 million on a company, that will also get the favour of investors.

if you do not belong to more than one that is already known and rare entrepreneurs ability are confirmed, then you should avoid the following 10 investors lose interest promotional methods. As angel investors I’ve experienced these promotion methods, these practices will make your investment promotion book was thrown into the wastepaper basket, even you no investment project is put forward in the future will be seriously considered:

1. “give me a call, let me tell you a chance to fail.” made investors or to send spam to investors is not a good way to make him pay for investment. In addition, to let them access to your web site or video and then tell you what they think, this also is unlikely to stimulate their curiosity to the fullest. Every investment promotion book should first briefly present do you want to solve the problem, and you for innovative solutions.

2. “enclosed I complete business plan, for your review.” for the first time contact investors will provide too much information in detail, this is the same and does not provide any information, will let investors lose confidence. Business plan is the first page of the best content summary, in order to let investors get a general idea of the expected financial situation, as well as the opportunity, competition, and the executives and other related content.

3. I don’t have a business plan, but it is a disruptive technology.” is the company part of investors to buy shares, not related products or services. They just want to quickly understand roughly products, rather than the product of the detailed function and patent secret. If you haven’t finalized business model, cost prediction and customer segmentation in the market, then you are not ready to investors.

4. “please forgive me for my wrong spelling and remove trace, I was too busy, before has been finalized”. don’t put any middle school teachers will refuse to accept the file sent to investors. These things will make investors immediately think that you are paying attention to enterprise operation details will be the same. Investors not only the “horse race”, also including the jockey.

5. “for the sake of simplicity, I used several well-known acronyms.” technical terms may be very natural for you, but investors will interpret this as you are arrogant or being lazy attitude, might even think you deliberately frighten readers, confusing the facts. Each word abbreviations should at least write the full name of the corresponding, and the definition is given in this paper, we first appeared.

6. I think the business plan answered all your questions.” as thick as a booklet of the business plan will make investors appetite, and the companies that will only make you looks more complex and more risky. A compact style, approximately 20 pages long business plan would be enough to effectively Outlines the general characteristics of the investment projects, including all the key financial factors.

7. “more detailed information included in the appendix. for the product specifications, the details of the sales plan and supporting financial statements provide independent evidence will impress people. However, in the foundation plan to join these materials are likely to be counterproductive.

8. “in this field, I really can’t find any respectable rivals.” not to insult or belittle your competitors, the data unless you can refer to a third party. Investors to put this kind of practice understood as you are very naive, even almost immoral. Talk about competitors should make positive expression is of your own products.

9. “let me do a demo for you, rather than a business plan for you.” presentation will never be carried out in accordance with the plan, and get the desired effect of demonstration usually lasts too long. Please keep in mind that investors cannot understand from a demo or a sample, they do not appreciate you in product development in all of the love and hard work. To investors do the best presentation is usually not more than 30 seconds.

10. “look, has how many people on social media website thumb up for me.” we all know how to make friends and partners on the net for our investment project campaign, but investors want to see is the feedback information from paying customers. If your startup, there are no actual revenue or to indicate growth statistics, the real contract, customer evaluation even intention statement is much more effective.

as a new entrepreneurs approach investors, you have only one chance to give investors a good first impression. Passion is necessary, but passion alone is not enough to get their attention. My advice is to carefully choose your investment promotion opportunity, well prepared, more focus on the prospect of financial performance. For investors to lose interest is very easy, and let them to take an interest in you is much more difficult.

source: Forbes China Chen school Li Jiji

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