The investor hears it and at first they don’t believe you. “Nah,” they say, as they start to argue with you whether that’s the way the world really works. Then, after a beat or two, they go, “wait, you’re right.” And after another moment, they think “fuck, that’s the only way it can be.”
“That’s interesting” does not in any way, shape or form mean the person is excited about your company or wants to buy your product. All it means is they don’t want to be a dick. “That’s interesting” is what people say when they’re trying to be polite.
Rapidly implementing investor feedback immediately builds an emotional tie between the investor and your company. Maybe they didn’t invest capital, but they invested an idea, and now their idea is a part of your idea.
“Do you think investors are stupid?”
You would not believe how many times I have posed this question to my clients. And every time they talk about approaching investors with “quick wins” and meaningless metrics, I am forced to ask them again.
This week I’m handing off the blog to a good friend and client of mine, Pascal Wagner, to provide a case study for one of my coaching aphorisms, The 1-10-100 Process. Pascal’s experience provides additional insight into what happens when my clients put my advice to work.
Investors are looking for a solid framework of how your company will grow and succeed, and they want to understand all of the assumptions underpinning that framework. It’s called The 1-10-100 Process, and it meets all the same criteria as a five-year projection, without the arbitrary time variable.