See Through The BS

Written on October 15, 2010 – 2:52 am | by Michael Harris

One of the most important skills that an Angel Investor can have is the ability to cut through the BS and see a business with clarity.

Being able to spot how the cogs work and external forces is of paramount importance to most, but especially if you’re going to invest!

However entrepreneurs often complicate things or throw up smoke screens … they often do this to distract attention from inadequacies in their model … or at worst, thats how it comes across.

Being obsessed with your business idea is great, having passion for your product is key to success, but living in suspended reality will only lead to tears before bedtime

We have found that those who shout loudest often have the least to say and it is usually at variance with what is happening in the real world. This is sad, as they are often entertaining …. But do not lose track yourself.

Even though 73% of experienced business angels go with ‘gut feeling’ when valuing a business, if you’re trying to move a market, you need more than guts. They need facts and clarity. Not many angels are taken in by bluster … sure they love and are distracted by shiny new things, but time after time actually come back down to the facts, and then leave the exciting varnished deals hanging

Entrepreneurs or commentators also often mistake popularity or volume for “fact” …. Facts shouted at you do not tend to go in more than a reasoned argument.

Do not BS, you will get found out. Indeed we had one of “those” awkward meeting this week, (not fun) … and try to see the deal from the perspective of the money. [Email us if you are unsure what the angel is looking for, after 7200 pitches in 2009, we think we have a good idea]

We are very good at finding our companies an angel … the average company pitching has 3.4 angels interested. But we need your help to close the deals… Face up to your weaknesses and then plan how to combat them … often this will be with the money you are raising.

It’s more than OK to be less than perfect, it’s almost called for …. We have too many “too good to be true” deals sitting on our shelves … angels want the truth and not bluster.

The good news is that we had a record number of entrepreneurs registering with this week and another 87 angels joined our fold (including some well known names)

And if you’re interesting in joining the party then we’ve got SpeedFunding events in Edinburgh on Thursday 21st and Glasgow and Thursday 28th October.

Perfect Business!