“Successful people are always looking for opportunities to help others. Unsuccessful people are asking, ‘What’s in it for me?’”
~ Brian Tracy
Skeptical and pessimistic people (including venture capitalists) are skeptical of grand claims. Hence why you should avoid superlatives (e.g., we have the world’s best management team) when speaking with them.
But you should also avoid other grand claims and bolster your credibility wherever possible.
For example, having a financial model that shows you are going to grow from $0 to $100 million in revenues in 3 years is generally going to be frowned upon. Since achieving such a feat is extremely rare.
Conversely, by researching the growth profile of similar firms, you can come up with more credible forecasts that will escape skepticism and show investors you really understand the business and its potential.
Likewise, you can boost credibility by getting customers. One of a VCs greatest concerns is whether you’ll be able to acquire enough customers. Proving this early on significantly enhances your positioning and chances of raising VC dollars. Even if you don’t have a product or service that’s ready for customers, there are things you can do. For example, you can get alpha or beta customers. Or, at the least, you could survey customers and show VCs survey results and testimonials from customers saying they are seeking the precise solution you are building.
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Today’s Question: In 1996 what overtook Coca-Cola as being the most well-known brand name in the world?
Previous Question: Which drink was named by its inventor after rejecting the first six names that were suggested?
Answer: 7-Up was the final name after the inventor rejected the first 6, which included “Bib-Label Lithiated Lemon-Lime Sodas” and later “7 Up Lithiated Lemon-Lime.”
Fortunately, the inventor, Charles Leiper Grigg, kept going until he knew he had the right one.
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