2-fer-1 advice for first time founders
I was just asked to answer the question:
What’s the most common mistake new businesses/entrepreneurs make when they go to approach investors and lenders?
I encounter two mistakes that new entrepreneurs frequently make.
Entrepreneurs frequently will ask an investor to sign an NDA. Savvy investors will never sign NDA’s. Google it. I am not willing to put myself at risk just to hear you pitch your idea. I may come across the idea years from now from entrepreneurs who are better suited to execute on it, and I can’t have the liability of the NDA I signed with you out there. Talk about your idea early and often. Your success is going to be based on your ability to execute on it, and not the risk of someone stealing your idea. It’s not about the idea, its about execution.
Entrepreneurs often think it is all riding on one meeting or introduction. The truth is, the first meeting is a data point. You set expectations for where you are headed. The next time you meet with that investor, you better have gotten further along. Investors are looking for trend lines, and when I see someone who is really hustling and moving their company forward relentlessly, that is when I get interested.