#3 Common Phrases to Avoid When Pitching to Investors
A phrase can ruin your chances of getting your startup funded.
Entrepreneurs need to be careful when pitching their idea to investors for the first time. A perfect pitch can get your startup funded and help you win over investors. When trying to raise money, first-time founders often fumble their words or use big words (which makes even smart people look stupid) because of lack of preparation or nervousness. What they tend to forget is that sometimes even the most well-meant phrase could be misinterpreted and further lead to big trouble. Moreover, a phrase can ruin their chances of getting funds for their business.
Entrepreneur India lists out few common phrases that entrepreneurs must avoid and while pitching to investors.
No One Can Copy Us:
Although experience is the life’s best teacher.But while communicating, if the knowledge is not at your fingertips, it does not make a good impression.
Arjuun Bajaj, CEO and Founder, Daiwa suggests that one should not create an image as an 'inexperienced person' as well by stating phrases such as "No one can copy us", or statements that include "Assurances of benefits".
“These kinds of statements can lead to investor to not invest in the start-up. So, it’s always better to avoid such mistake of putting forth financial predictions but proving the worth of investing in the start-up,” shared Bajaj.
We Have No Competition :
According to Aashish Kalra, Chairman of Cambridge Technology Enterprises, entrepreneurs should not use phrases like ‘We have no competition’ and ‘No one can copy us’.
“These statements reflect a certain naiveté and lack of thought. If there is a need it is being solved. For example, before Uber, there were buses and taxis. They solved mobility but Uber solved it differently and better,” said Kalra.
I’ll Have To Get Back To You On That:
Minal Anand, Founder & CEO, GuruQ also shared two phrases that can kill an investors vibe.
“The first phrase is ‘I’ll have to get back to you on that, this is something you should never say. It is utmost important to know all relevant information pertaining to your company at your fingertips. In fact, nobody should know more than the Founder,” said Anand.
She went on to say that entrepreneurs should also avoid using common phrases like “There is no competition”.
“This is a naive statement because in today's day and age I believe very rarely will you not find competition unless you have a monopoly through a patented idea, technology or process. Also having competition is healthy and drives growth,” she added.