Startup fallacies and misconceptions

 As if there were not enough challenges to building and scaling a successful startup we have to count amongst them those that are either self-created or entirely avoidable.

 Here are just a few of the fallacies and misconceptions that we encounter every week when working with startups.

My investor pitch and slide deck are great

It probably isn’t anywhere as good as you think it is. In fact, a lot of scientific enquiry has been directed towards understanding why we over estimate our own abilities. Your pitch is no exception. How to best present your startup in 5 minutes or less requires outside expert feedback and perspective. Don’t expect investors to tell you what wrong with it, that’s not their job. In fact labouring under the illusion that your pitch is investor ready could be the very reason why you you haven't got funded yet. Get out of your own head and get your pitch checked!

Everyone can use my offering

Yep, it’s true, a lot of founders still fail to identify a specific buying persona or IC. This just sets you up to fail, not knowing who exactly the market is will make it pretty tough to convince an investor that their money is safe with you and your business.

I only need $50,000 to prove my business model works

Investors are looking for business with traction or at least clear sight of how it’s going to happen. What they aren’t looking for are opportunities to prove your hypothesis with their funds. Investors invest to scale startups not validate business models, that's the job of the founder. Remember, investors are looking for a return on their capital and a future exit to get the money out.

I don’t have any competitors

 Just don’t say it, your credibility will plummet. Not understanding the competitive landscape reflects a laziness in due-diligence.  Think about it, and name just one company that has zero competitors? Do your research, understand where you fit in the market place and be clear on what makes you special.

Investors decide to invest at the very first pitch

It might have happened in the past, but in these times the best you can expect on the strength of your pitch is a second conversation. That’s the immediate goal of pitching, to get them interested to know more. This means sharing enough to get them interested without trying to cram a twenty minute pitch in a deck delivered in five minutes. Be selective on what you share, make every slide and every word count.

As an entrepreneur I want control of my destiny

 If wanting to have a solid sense of control, security and direction are what draws you to the entrepreneurship journey, you might want to rethink your priorities. It’s a great opportunity for personal growth because it’s a sure-fire way to take you out of your comfort zone in myriad ways. Mindset is one of the biggest determinants of experiencing success but the mindset part of being a founder often gets a back seat.

If you are pitching for investment then realistically how many of these could be affecting your chances of getting funded?

It's not all doom though, the great news of course is that awareness is the foundation of change. As soon as you realise these fallacies and misconceptions exist you can take steps to address them and you can take action now! If you want to find out how your pitch stands up to scrutiny you can join us on PitchSLAP, the weekly livestream that offers founders a window of objective clarity to make immediate improvements and adjustments before they pitch for investment

You can sign up here pitchslap.live