Do Nice Guys Really Finish Last?
T. Craig Bott, president & CEO of Grow Utah Ventures
‘Nice guys finish last,’ or so everyone’s always been told. I’ve always wanted to believe that this is not true and through my own experiences have come to the knowledge and understanding that it really isn’t. In the world of angel investing and venture capital, nice guys can, and often do, finish ahead of the rest. Allow me to explain why.
Most investors will tell you that when listening to a pitch for investment money the one aspect that’s as important if not more important than the product or service the company provides is the personality of the business owner and executive leadership of the business. Often an investor’s decision to invest in a company is based off of how easy he or she thinks the company leaders will be to work with.
If the business owner is slow to accept an investors input or to be questioned about their business and strategy for using the investment money it raises red flags that the business owner is to arrogant and unwilling to accept a partner. Let’s face it, if a VC chooses to invest in a company he is doing so with the understanding that he’ll be a partner in the business and will help the business succeed through his financial investment as well as an investment of his time and expertise.
A couple of keys to consider when pitching an investor include:
· Be open to criticism and questions: In the long run an investor simply wants to understand the business and its potential. If you’re unwilling to share this information don’t hold your breath on receiving the investment money.
· Be open to an investor’s suggestions and recommendations: These investors are where they are for a reason. They may not understand your business and market as well as you do but they wouldn’t be where they are if they didn’t have good business sense.
· Understand your market: If you don’t know your market and how you’ll sell your product or service, it won’t take long for an investor to discover your lack of knowledge.
· Have a clear plan as to how you want to use their investment money: Nothing will drive an investor crazy more than somebody who doesn’t know exactly what they need to get their business up and running, or to take it to the next level.
I’ve seen top-tier companies with great products not receive investment money simply because of fears that the business owner will be a nightmare to work with. On the flip side, I’ve seen second-tier companies with strong leadership that understand the value of an experienced investor and good partner receive financing simply as a result of their attitude and because they were prepared.
T. Craig Bott, president & CEO
Craig has provided senior level management advice and council on strategy, marketing and management to hundreds of emerging and expanding businesses throughout the western United States. He directed Ernst and Young’s Entrepreneurial Management consulting services and owned and operated his own successful consulting business for many years.
He has advised and consulted with numerous civic and community leaders on how best to strengthen and grow their economic and business base and achieve job growth. He has directly advised the Utah Governor’s Office on strategies to strengthen and expand the Information Technology and Aerospace industries of the state. He is a nationally published author, and has acted as an adjunct professor at Weber State and Brigham Young Universities.
The content of this blog reflects the views and opinions of the author, and not necessarily those of Utah Business.
Tags: Grow Utah Venures