What Should Not Be Said And Should Not Be Done In Financing Negotiations

In the financing negotiations, some things that should not be said and should not be done should be kept for several hours. Before the end of the negotiations, you should relax and be very talkative. At the same time, you should correctly understand the relationship between the two parties, and always pay attention to what things can be said and what questions can not be said.

During the meeting, people should focus on the plan and avoid certain topics.

For example, let's take a look at the grand plan that you will be able to carry out in the future. At that time, your company will have 13 subsidiaries, distributed in 47 countries, with sales volume of 10 million yuan.

This is nothing to do with the analysis of your plan by venture capitalists, and sometimes such grand plans may lead to the other's thoughts, or even suspect you are a visionary.

Even if there are some ideas during the meeting, such as adding a bell or flute on the existing product, or wanting to eat a company and other matters not related to the proposal, it should not be put forward at the meeting period.

Otherwise, it may divert the other party from reading the plan's objectives and reduce the chance of obtaining investment.

If you put forward a new plan during the meeting, the other person may think you won't climb, and you want to run, leading to a loss of confidence in your company.

After making a deep discussion of the plan, venture capitalists like to raise the following questions, which are usually similar to the following.

Risk investors: through detailed discussions with you, I feel that you must make extraordinary efforts to achieve your goals and overwork every day. This actually means a sacrifice, and this sacrifice may last for 4-5 years. I can't believe that there are still people working hard like you in the world.

The entrepreneur replied: (1) I always want to have my own company. I hate to work under other people's leadership. Now I finally get my wish.

In the past, I would have to report to those idiots. It was because there were many bureaucrats that I didn't show my opportunities.

My boss doesn't understand me. I want to be my own boss, so I don't have to obey anyone.

One of the answers is: I dream to have my own company, but this is only part of the complete plan. My real goal is to make a lot of money. I think this is my only opportunity. If we combine my ideas with your investment, we will win. This is also our golden opportunity.

As you can see, there are essential differences between the two answers.

The first entrepreneur seems to think that by owning his own company, he will be able to do everything without asking for help.

This is far from the truth.

As an entrepreneur, when he fails to deliver his promises on time, he must obey investors, bankers and other creditors; if he fails to pay taxes, he will obey the IRS; all this goes far beyond the original imagination of entrepreneurs.

I know a friend who finally owns his company. When he became chairman, I asked him how he felt.

He replied, "I was dreaming, it's hard to say."

In fact, as an entrepreneur with his own company, it does not mean to make decisions in the way of luxury cars, but to do a lot of hard work. If we want to survive in the cracks, we have to take a long and difficult road. If there is any mistake, we must remedy it in time. Otherwise, we will lose our feet forever.

The second entrepreneurs are right. He concentrates that making money is what venture investors are concerned about.

You know, risk investors are not interested in your state of mind and your social independence desire. He has no intention of solving your personal problems, but only interested in making money.

Loyalty is the most important character of an entrepreneur. Loyalty and integrity are the most difficult to assess.

Most venture capitalists have realized that there are two kinds of typical disloyalty.

First, double-sided people, they tell you that you can earn a lot of money by cheating others, and will not tell you how he will share it with you.

He describes his deception of cheating the government, describes how to intercept the proceeds of the supplier through the agreement, and how to obtain credit through the loan system. In short, they believe that anything can be done as long as they can make money.

Then he will introduce his investment and parted with you.

In fact, identifying this disloyal person is not difficult. Even at the end of the meeting, when examining his personal basic conditions, he usually reveals his Fox's tail.

The second kind of disloyalty is "presumption of falsehood" according to its academic name.

For example, "our board of directors will not agree to that plan" is a presumptive lie, because the board usually follows the wishes of the manager. This sentence contains a real answer: "I don't like that plan".

Such a lie is a common way of stealth behind the board of directors.

This is also easy to give negative answers.

Another "presumptive lie" is used by venture capitalists.

He can euphemistically say: "you want the investment form to coincide with our investment form."

The purpose of this venture investor's answer is that he doesn't like this investment project.

He is using this natural method to give up your plan rather than refuse it directly.

I have used this presumptive lie many times to negotiate or reject a plan.

In business, such hidden lies are acceptable.

Presumptive lies "do not have the same way of asking and answering. Their injustice is hard to find the right words and difficult to understand.

For example, when you ask a question directly, its presumptive lie does not seem to answer the question, but it will be hard to understand.

Moreover, when a man is trying to avoid a topic or problem, his behavior is similar to a "double faced man", similar to an entrepreneur who fails to fulfil his promise.

This habit may also cast some shadow on their loyalty.

In other words, you can tell a white lie to a risk investor, but not too big, otherwise it will jeopardize your success or failure.

If a venture investor contacts you for the first time, he wants to assess your loyalty. If you lie to him and get caught, you can only say goodbye to the investment you seek.

We must bear in mind the fact that venture capitalists will never support disloyal people.

A number of things should not be done. As venture capitalists want to get along with entrepreneurs and discuss their company's plans with each other, they must gradually form some habitual preferences and eccentricities.

The following is the introduction of one or two.

Don't avoid questions and answer questions vaguely. Venture capitalists don't have time to tolerate evasive answers, which will force them to ask questions repeatedly.

If you answer the question vaguely, when you ask whether the other side agrees to invest, he will also treat the person in his own way.

The more direct and the shorter the answer, the more direct answer to the direct question.

If you can't hear the other person's questions clearly and ask for answers directly, most of the risk investors are almost experts in question. They are experts in this field. If they find me in their circles, I will bet you that you will not be able to get investment from each other.