Five things NOT to say to investors (2024)

FAQs

Five things NOT to say to investors? ›

Say: “I have no competitors.”

We've all heard this: 'if you have no competition, you have no market.” Besides, if your product asks for anything from a customer, be it money, time, or attention, you are by default in competition with all of the other things a customer could be doing with that money, time and attention.

Say: “I have no competitors.”

We've all heard this: 'if you have no competition, you have no market.” Besides, if your product asks for anything from a customer, be it money, time, or attention, you are by default in competition with all of the other things a customer could be doing with that money, time and attention.

Stay Positive and Keep Updating: Politely ask if you can keep the investor updated on your progress, even if they've said no. This shows persistence and keeps the door open for future opportunities.

Market volatility: Many investors worry about the ups and downs of the stock market. They don't like seeing their investments lose value and they worry that the market will never recover. 2. Inflation: Another big concern for investors is inflation.

When speaking with potential investors, be sure to explain the details of your plan in a clear and concise manner. Avoid using too much jargon or overly technical language. Investors want to know the basics of your plan and how you intend to use their money. Second, avoid overstating the potential of your business.

Silent partners — also known as silent investors — invest in companies without being involved in daily operations. They invest their money in your business, but they don't attend meetings or make decisions. They don't oversee finances or review strategies.

A silent partner is seldom involved in the partnership's daily operations and does not generally participate in management meetings. Silent partners are also known as limited partners, since their liability is typically limited to the amount invested in the partnership.

What is the biggest risk for investors? ›

Possibly the greatest of these risks is that a portfolio with too much cash won't earn enough over the long term to stay ahead of inflation and that it won't provide enough protection against inevitable downturns in stock markets.

There are different ways companies repay investors, and the method that is used depends on the type of company and the type of investment. For example, a public company may repurchase shares or issue a dividend, while a private company may pay back investors through a management buyout or a sale of the company.

So they're going to want to know exactly why you need the cash and exactly what you plan to do with it. They'll also want to know when they can expect a return; that should be a part of your business plan. Investors will also be looking for an exit strategy, and you need to think about that in advance.

Some of the more important basic investment advice includes riding winners and selling losers; avoiding the urge to chase "hot tips"; resisting the lure of penny stocks; and picking a strategy and then sticking to it.

Common investing mistakes include not doing enough research, reacting emotionally, not diversifying your portfolio, not having investment goals, not understanding your risk tolerance, only looking at short-term returns, and not paying attention to fees.