5 mistakes that prevent the deal from closing

Many people looking to close on more deals this year are always searching for the one task, or the one meeting that will open the flood gates to accessing great deal flow and connecting with the right investors. And Unfortunately, many times this translates into people looking for the one easy solution to getting more deals done, which will then translate into a "desperate energy" that savvy and worthwhile investors can intuitively feel.

Here are 5 ways that people waste their time while attempting to close deals that immediately turns off a good investor:

1. Sending the same email template over and over again via email and LinkedIn without personalizing the message to that specific lead.

2. Not being prepared with a unique value proposition. "There is no one out there like us", is not a good enough reason not to develop a clear one-line sentence that sends that message strategically and technically. If there was a pile of 50 deals similar to yours on an investors desk, why should they open yours first?  

3. Taking half measures in your pitch materials. Not worrying about the aesthetics of your executive summary and pitch deck will send a subconscious message of mediocrity. The more valuable the counterparty the less time they have to read something that is not concise or shown visually.

4. Thinking that past performance is enough. The world is changing, and that means investment strategies are too. How are you adapting and evolving in a way that will prevent your strategy from becoming obsolete?

5. Having irrelevant experience. I spoke to an apparel start-up company that was pre-revenue. They believe they can gain the trust of investors simply because they have marketing experience in a technology company. Not only was their marketing experience in a completely different industry, they were employees of the technology, meaning they had no previous business ownership experience.

Many consumer-based start-ups have to put in the effort of a grassroots campaign, generate profit, test effective marketing strategies, and manage a team before they ask for capital in order to diminish the perceived risk of the investment.

The truth is most people will not successfully raise capital because they overestimate the uniqueness of their idea, strategy, and product, and underestimate the importance of investing resources in a strong sales and marketing strategy.

The stacking of insights, strategies, structures, and relationships is what allows us to close on deals and make progress, I hope our community can provide the same for you over time. Thanks for following our work and contributing to the flow of ideas within our community.