Competitor Traps Every Startup Pitch Should Avoid

Source:. Competitor Traps Every Startup Pitch Should Avoid.

Every entrepreneur should spend much time thinking about competitors and about how they relate to his business. But as an entrepreneur has to be careful in everything he says about them, their team, investors and customers. What you say, clearly characterizes what you think about your startup, how smart you are, your personal integrity and honesty.

I spent many hours talking with the founders of startups, I heard thousands of presentations and I always pay much attention to what they say (or vice versa, which is silent ) about competitors. We all have a definite opinion about the opponents, because you probably will ask unexpected questions on this topic. Here are some common pitfalls you should avoid:.

a. First of all, do not say that you have no competitors. Such a statement acts like a big red flag for investors who see this as a signal that there is no market for your offering. Or it will become for them an indication that you are not worthy to examine the existing market. Both conclusions will drive credibility of your convictions to zero, as well as sharply reduce further interest in financing.



2. Try not to belittle their competitors. Speaking about the opposition, you can in a positive light to present its product. For example: ... ... Do not say so: ... ...

3. The advantage of ... Very often, those who first offered anything, its activity mask the fact that they have no patents or intellectual property. Investors decide that you are vulnerable to the deep wallets of large players, who will wake up and kill you for your weakness. The best defense is a dynamic line of products.

4. You should not expose the fact that you can not consider a potential competitor. Do everything in advance, looking for every possible competitor in the online magazine about business, with councilors and interested members of the team. Most good time at the meeting may be spoiled by the apparent ignorance or biased evaluation of a possible competitor.

5. Do not forget to mention about alternatives and additional options. You must make it clear that considering the competition in all planes, including indirect competitors and alternative solutions available. You will not sound convincing when you say that air transport is not a competitor for rail transport. Always show a real and balanced picture.

6. Think of time, implying a comparison. The fact that you state that there is no significant element of a competitor today, and say that you have this element will be a year does not sound weighty and certainly will affect your image of a wise man. Perhaps a competitor is already working on it and give you a head start.

7. Competitors are and will be. You can create an atmosphere of trust, if provided for the further direction of the competitor, and will act to seize the initiative. Remember that today's world is relatively small and because international considerations, as well as the technology is very important.

Remember, above all, investors invest in people. They expect you to intelligent action, as well as a sober and fair view of the competitors. Attempts to hush up the real issues investors about the opposition not towards the conclusion of the contract and will not convince the buyer that you have to buy products from you.

In reality, you will never be the ideal answer questions about competitors, because you do not know what actions they can take before or during your reports. Your goal - to convince investors and consumers that the risk of working with you a lot less risk with your competitors. You will be much easier if you believe in yourself and present a balanced view directly and with confidence.

Translated for the blog. dennydov. blogspot. com.
Angelina Overchuk.

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