Let me share some thoughts inspired by a recent Shark Tank episode…
A contestant demonstrated a very unique product that piqued the Shark’s interest. When asked about his background, he listed numerous talents, brainy feats and escapades that led to the development of his new product. Instead of his colorful past being a plus in the Shark’s eyes however, his history raised a red flag. One Shark called him “too disorganized” so she was “out.” (For those of you new to Shark Tank, “out” means not interested in the deal.) The contestant appeared perplexed and somewhat taken aback by her comment. What might have saved him? A statement or two, immediately following his list of exploits, conveying a passionate and enduring commitment to the success of the current product might have kept him in the running.
Perhaps “disorganized” was not the best word choice. To most people “disorganized” means a cluttered desk or misplacing your keys. The Shark may have chosen that word to represent a few less obvious concerns related to disorganization that can doom a startup. Founders, it’s important to know the less obvious ways that you can appear “disorganized” in the eyes of investors:
- As much as creativity is an asset to an entrepreneur, having many simultaneous and disparate activities going on are liabilities. It suggests you have difficulty focusing in on one thing that requires deliberate, consistent and sustaining dedication like a startup. Problem: An Investor will see herself doing all the work or exerting too much effort directing and monitoring you than it’s worth.
- Indirect and lengthy answers to simple questions suggest a disorganized mind. Or, perhaps you introduce ideas into the conversation that are unrelated to the main point. Problem: An investor may sense the need to constantly corral your attention to the topic or task at hand. Exhaustive repetition, interruption and re-direction is too great of an energy expenditure for a busy Shark.
- Do you engage in too much levity when there should be seriousness? Problem: You may be a nice guy or gal and fun to be around, but when it comes to spending other people’s money and getting things done, joking around is a waste of time.
- Is your presentation delivered in a logical sequence? Problem: Potential backers do not want to work harder than you to figure out your plan from start to finish.
The bottom line: Examine your sales pitch and presentation. Make the changes necessary to avoid being perceived as “disorganized.”
Do you need an expert set of eyes and ears to identify the red flags that could discourage customers and investors from wanting to work with you? Contact me for Core Four Coaching [email protected]