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Suggest You - Venture Capital Angel Investors Don't Know Jack
Bar Charts and the Information ChallengeWhether one is an unknown entrepreneur or Donald Trump, an elementary school teacher or a university president, a 6th grader researching other countries or a government leader visiting them, each person in any capacity has at least one thing in common: information.Let me explain why I use bar charts as an example. Whether information is being acquired or distributed for business or educational purposes, the challenge that arises is how to compile all of the information. Bar charts are just one example of a variety of instruments for disp
They spend countless hours asking inane questions that they should know the answer to. They spend a lot more time talking than they do listening. They ask more questions not because they want to know more, but because they don’t know enough to begin with. If you find yourself in front of this investor – run away as fast as you can! They are going to suck the life out of you.
Conversely, good investors get to the point quickly. They understand the industries they invest in and they don’t need to be “brought up to speed” about industry events that have occurred in the past few years. They are less concerned about learning your industry and drive straight i
Well, for starters, because good public relations can alter individual perception and lead to changed behaviors among your key outside audiences. And that can help business, non-profit and association managers like you achieve your managerial objectives.But remember to let the PR tacticians handle the special events, brochures and press releases. As a professional manager with public relations reporting to you, you have more important things to do.Like, for instance, planning to do something positive about the behaviors of those key external audiences of yours that most affect you
That said, I think you need to keep one thing in mind while you’re being told what a buffoon you are for presenting your idea – maybe this venture capital angel investor has no idea what they hell he’s talking about!
It’s true, most venture capital angel investors don’t know jack. Don’t get me wrong – they think they know it all, but the truth is that most investors have a lot to say, and very little to deliver. The problem for entrepreneurs is that they tend to think that because venture capital angel investors can write a check, they must be experts on investments. That’s like saying that because you can buy a few shares of Gillette that you might be Warren Buffet. Not quite.
Consider the Source
When you’re listening to the feedback from anyone, investors included, you should evaluate the credibility of that feedback with healthy skepticism. You should be asking yourself “What makes this person qualified to validate my business idea?”
While many venture capital angel investors have experienced success in one or two industries at some period in time, that doesn’t necessarily make them an expert on your current business opportunity. Just because an venture capital angel investor made a gazillion dollars in the real estate industry in 1976 doesn’t mean he’s qualified to tell you about the state of the software industry in 2006.
Ideally you want to solicit feedback from venture capital angel investors who have “been there and done that” in your particular industry, preferably sometime in the last decade! The last thing you need is to waste your time listening to ancient war stories of an venture capital angel investor who hasn’t suited up for the game since before you were born.
Venture Capital Angel Investors Make Bets, NOT Predictions
If venture capital angel investors knew exactly which market opportunities were going to be the next big thing they wouldn’t need you – they could go start the company themselves. Investors aren’t that gifted, so they need to make lots of bets in hopes that a few of them will hit big while the others fall away and die.
When an investor tells you they don’t see the viability of your business, they are simply telling you that they are not willing to bet their money on your particular idea (or in many cases, on you in particular). It’s not the same as making a prediction that you will fail. The truth is the investor has no idea whether or not you will ultimately be successful, only whether they have enough confidence to bet on your success.
Bad Investors Are Like Black Holes
Not every investor is worthy of your time either. Bad investors, particularly those without much success at investing, can be a black hole for entrepreneurs, sucking up time and space at an incredible rate.
They spend countless hours asking inane questions that they should know the answer to. They spend a lot more time talking than they do listening. They ask more questions not because they want to know more, but because they don’t know enough to begin with. If you find yourself in front of this investor – run away as fast as you can! They are going to suck the life out of you.
Conversely, good investors get to the point quickly. They understand the industries they invest in and they don’t need to be “brought up to speed” about industry events that have occurred in the past few years. They are less concerned about learning your industry and drive straight in
It is one thing to make a sales presentation, but it is another thing to make a sales presentation without first evaluating your customer. For all you know, you could be selling your customer something that they already have, or something they don’t want, don’t need, or can’t afford.This is why it is so very important to take your customer in, sit them down, make them feel comfortable, and get to know them and what their needs are. Once you have done this, you can then sell them a product based on what their needs are and not what you think they are.On a personal note . . .I learned the
Consider the Source
When you’re listening to the feedback from anyone, investors included, you should evaluate the credibility of that feedback with healthy skepticism. You should be asking yourself “What makes this person qualified to validate my business idea?”
While many venture capital angel investors have experienced success in one or two industries at some period in time, that doesn’t necessarily make them an expert on your current business opportunity. Just because an venture capital angel investor made a gazillion dollars in the real estate industry in 1976 doesn’t mean he’s qualified to tell you about the state of the software industry in 2006.
Ideally you want to solicit feedback from venture capital angel investors who have “been there and done that” in your particular industry, preferably sometime in the last decade! The last thing you need is to waste your time listening to ancient war stories of an venture capital angel investor who hasn’t suited up for the game since before you were born.
Venture Capital Angel Investors Make Bets, NOT Predictions
If venture capital angel investors knew exactly which market opportunities were going to be the next big thing they wouldn’t need you – they could go start the company themselves. Investors aren’t that gifted, so they need to make lots of bets in hopes that a few of them will hit big while the others fall away and die.
When an investor tells you they don’t see the viability of your business, they are simply telling you that they are not willing to bet their money on your particular idea (or in many cases, on you in particular). It’s not the same as making a prediction that you will fail. The truth is the investor has no idea whether or not you will ultimately be successful, only whether they have enough confidence to bet on your success.
Bad Investors Are Like Black Holes
Not every investor is worthy of your time either. Bad investors, particularly those without much success at investing, can be a black hole for entrepreneurs, sucking up time and space at an incredible rate.
They spend countless hours asking inane questions that they should know the answer to. They spend a lot more time talking than they do listening. They ask more questions not because they want to know more, but because they don’t know enough to begin with. If you find yourself in front of this investor – run away as fast as you can! They are going to suck the life out of you.
Conversely, good investors get to the point quickly. They understand the industries they invest in and they don’t need to be “brought up to speed” about industry events that have occurred in the past few years. They are less concerned about learning your industry and drive straight i
When people think about telephone sales they often think about telemarketers and how much they dislike them. However, if you own a service business and you have customers calling in who desire service and have questions it is amazing how many of those potential customers you can turn into becoming your best customers.Unfortunately, very few small service businesses understand that when a customer calls on the phone and starts asking questions even if they are merely in the discovering mode of what the services entail; you can very easily turn them into customers. Selling your services over the phon
Ideally you want to solicit feedback from venture capital angel investors who have “been there and done that” in your particular industry, preferably sometime in the last decade! The last thing you need is to waste your time listening to ancient war stories of an venture capital angel investor who hasn’t suited up for the game since before you were born.
Venture Capital Angel Investors Make Bets, NOT Predictions
If venture capital angel investors knew exactly which market opportunities were going to be the next big thing they wouldn’t need you – they could go start the company themselves. Investors aren’t that gifted, so they need to make lots of bets in hopes that a few of them will hit big while the others fall away and die.
When an investor tells you they don’t see the viability of your business, they are simply telling you that they are not willing to bet their money on your particular idea (or in many cases, on you in particular). It’s not the same as making a prediction that you will fail. The truth is the investor has no idea whether or not you will ultimately be successful, only whether they have enough confidence to bet on your success.
Bad Investors Are Like Black Holes
Not every investor is worthy of your time either. Bad investors, particularly those without much success at investing, can be a black hole for entrepreneurs, sucking up time and space at an incredible rate.
They spend countless hours asking inane questions that they should know the answer to. They spend a lot more time talking than they do listening. They ask more questions not because they want to know more, but because they don’t know enough to begin with. If you find yourself in front of this investor – run away as fast as you can! They are going to suck the life out of you.
Conversely, good investors get to the point quickly. They understand the industries they invest in and they don’t need to be “brought up to speed” about industry events that have occurred in the past few years. They are less concerned about learning your industry and drive straight i
Gravitational Marketing is about returning to the roots of what advertising is really all about.But, the question is…What is real advertising?Well, I can tell you with surety that it is not what they do on Madison Avenue these days. And for you, my small business marketing friends, it is not what most of your peers are doing either.On Madison Ave they have lost all clarity about what advertising is and its real purpose. I was reading an article today by Denny Hatch, who is an amazing direct marketer, about the current Bud Lite “Real American Genesis” advertising campaign.Denny wa
When an investor tells you they don’t see the viability of your business, they are simply telling you that they are not willing to bet their money on your particular idea (or in many cases, on you in particular). It’s not the same as making a prediction that you will fail. The truth is the investor has no idea whether or not you will ultimately be successful, only whether they have enough confidence to bet on your success.
Bad Investors Are Like Black Holes
Not every investor is worthy of your time either. Bad investors, particularly those without much success at investing, can be a black hole for entrepreneurs, sucking up time and space at an incredible rate.
They spend countless hours asking inane questions that they should know the answer to. They spend a lot more time talking than they do listening. They ask more questions not because they want to know more, but because they don’t know enough to begin with. If you find yourself in front of this investor – run away as fast as you can! They are going to suck the life out of you.
Conversely, good investors get to the point quickly. They understand the industries they invest in and they don’t need to be “brought up to speed” about industry events that have occurred in the past few years. They are less concerned about learning your industry and drive straight i
Sales QuizWhy not give the following sales quiz to your sales staff. It will give you an idea of their understanding and application of some of the critical issues, concepts and techniques that have an impact on their sales performance and results. If you feel your team could benefit from an in-depth Custom in-house sales training program, please give me a call. I will be happy to discuss a custom curriculum for your staff with you. Please give me a call if you would like the answers to this quiz.Other quizzes are also available on the following topics: Customer Service , Relationships, Man
They spend countless hours asking inane questions that they should know the answer to. They spend a lot more time talking than they do listening. They ask more questions not because they want to know more, but because they don’t know enough to begin with. If you find yourself in front of this investor – run away as fast as you can! They are going to suck the life out of you.
Conversely, good investors get to the point quickly. They understand the industries they invest in and they don’t need to be “brought up to speed” about industry events that have occurred in the past few years. They are less concerned about learning your industry and drive straight into the few aspects of your business that will make or break you. They can do this quick analysis because they actually know what they’re talking about.
All Investors Are NOT created equal
It’s no surprise that the best venture capital funds consistently churn out the best startup companies – it’s because they are better investors than the other funds. Just like investors are looking for the best ideas, entrepreneurs should constantly be looking for the best investors to pitch their ideas to.
Unlike entrepreneurs who often only have one hit, good investors typically have a long track record of successful investments. If they don’t, that should be a big red flag to the entrepreneur. They might have some money, but that doesn’t mean they have talent.
So the next time you’re sitting across from some know-it-all investor who is telling you how your company couldn’t possibly succeed, ask yourself “is it possible that this guy has no idea what he’s talking about?” Surprisingly, the answer will often be yes! And when it is, don't hesitate to find yourself a competent venture capital angel investor.
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