I talked to a client today about his encounter with a potential investor; The prospect wanted to know more information on how people had built similar businesses, how much of the company his money would buy, and when he could expect a return.

This was troublesome, because the client was at the seed capital stage (raising money via a promissory note) and could not answer the questions. He didn’t have a business plan or a formal equity offering. He was raising money so he could pay professionals to help him create them.

I reminded him that 19 out of 20 investor prospects will not be interested in you, no matter where you are in the evolution of your business.  They will ask questions you can’t answer and point out that your team, plan, market, progress, IP protection, sophistication, lack of market traction, etc. concerns them.

Don’t let it concern you. Keep knocking on doors and making calls until you find people who are comfortable with the progress you have already made.

And ask permission of everyone who isn’t prepared to write you a check today to call them back in a few months when you can share additional progress in making the venture one that is attractive to them.

Questions: Are you ready for the tough questions? Are you ready for someone to say “no”? Are you ready to move on, cheerfully?

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