Arshad Madhani’s 3 Tips to Talking To Investors

Talking To Investors

Global marketing expert and digital consultant Arshad Madhani knows how to deal with clients from all cultures. Mr. Madhani’s experience helping entrepreneurs reach success in a competitive global marketplace has taught him many lessons. With more than a decade of work behind as a top-level consultant, and an educational background that consists of an MBA from Texas A & M University, Arshad Madhani has boiled down his investor relations policy into three simple rules.

(Learn more about Arshad in this recent interview)

Arshad’s 3 Tips for Talking to Investors

1. Never Over Promise and Under Deliver

Investors, like everyone else, want to hear the unvarnished truth about things. There’s no need to sugarcoat situations or dilemmas. Put yourself in the investor’s shoes: Wouldn’t you want to hear “straight facts”? Of course, and so would they. That’s why it’s important, to be honest and not clout the discussion with irrelevant points. Get down to the facts.

That basic groundwork of speaking the truth, leads to an essential component of investor relations: never promise more than you can deliver. Doing so only sets the investor, and you, up for disappointment. When you break a promise, your credibility is almost fully negated in the eyes of potential investor or investors. In fact, it’s better to under-promise whenever possible. That way, you’ll end up delivering more to the investor than they are expecting.

Over-shooting expectations is the ultimate goal. But as a first step, entrepreneurs should make certain that they never give in to the temptation to make colorful, optimistic promises that are likely to never materialize.

2. Ditch the Pitch

Try your best to not deliver an obvious “sales pitch.” That can cause people, especially potential investors, to turn a cold shoulder to you and perhaps even stop listening. Instead, take the time to slowly build a relationship with prospective investors. Listen to what their concerns are, why they are involved in the business world, and how they view the key issues of the day.

What’s the alternative? It’s simply to bury your pitch within a comprehensive discussion. An indirect approach, a subtler phrasing of your pitch, is more effective than a direct statement of “I need funding for project X because of X, Y, and Z.” That’s too cold and impersonal. People want to get to know you, and you to know them, before you deliver any kind of a pitch.

3. Don’t Take Criticism Personally

When it comes to investor discussions and negotiations, it is imperative to never take criticism personally. Such an attitude is poisonous to success and self-improvement.

Remember, it’s about business, success, and eventual profit. There’s no reason to view criticism as anything other than a path to improvement. If your technical skills are lacking, and someone points this out to you, take the chance to improve your skills. If a prospective investor offers up a critique of you or your company, try to figure out how the person received that impression of you. The point is: use criticisms as a tool for improvement. In the end, you’ll be better off for doing so.

Get More Insights from Arshad

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