There is No Right Answer

This week I got a call from a first-time founder I know asking for help getting ready to respond to an investor who had seen her pitch.  The investor said he likes what she’s doing and wanted to follow up.

As we talked, it became clear she expected to be grilled and wanted to be sure she had all the answers to questions about her forecast going out a couple of years, key milestones, fundraising strategy, valuation, staffing, expansion plans and more.  There’s nothing wrong with preparing for investor questions like these, but the problem was, this founder hadn’t planned to raise money for a while.  She had her own view of what was the right timing for her and wanted to focus on generating revenue for at least four more months before pitching to investors.

It was only once the investor reached out that she decided she needed all the right answers.

Nothing about her business had changed, other than the investor’s interest.  But instead of focusing on what was right for the business, she was panicking, imagining a long list of tough questions that had to be answered immediately and correctly.

The reality is, there is no right answer.  Instead, when someone approaches you, or when you’re pitching, if you shift your perspective a little, you can create an entirely different experience – one where you’re learning and building productive relationships with others who like your idea.

Let someone share your enthusiasm by keeping the door open to uncertainty. 

Potential investors want to learn more about you, your company and how far you’ve come.  What if you were to view their interest as an opportunity to find out more about them, their goals, and to learn why your pitch sparked their interest? 

Instead of girding for a grilling, get curious about learning. Invite investors to be a part of the energy that led you to start your company. 

Don’t let the potential benefits of focused attention – or, in this case of this entrepreneur, anxious anticipation – go to waste. 

Pay attention to what’s making you anxious when someone reaches out.  This founder allowed the investor’s e-mail to sidetrack her from what she knew was right for her business. Instead, she diverted her attention to trying to guess what the investor might want her to do. 

She missed the opportunity to let that heightened focus clarify the right path for her, and how an investor could be a part of it.

Design your investor.

It’s exciting when investors reach out.  This founder has been generating plenty of interest; she’s onto something good.  But that doesn’t mean she is obligated to jump into a business relationship with anyone who approaches her.

What if you were to create your own vision for the timeline, valuation, terms and investor support that would be the best match for you?

Getting clear on that will help you respond when you do see it. 

There’s no right answer.

Worrying about producing the right answers meant this founder was spending her valuable time on exhaustive research and getting input from others.  In the end, she was actually preventing herself from having the answers by putting herself into a state of churn.

What if instead she had thought, “I get to have a conversation about my wonderful company with someone I don’t know.”  

Imagine how that could have led to her being excited, then wanting to learn more about the investor, and refocusing on what is good for her company – and for her. 

It’s perfectly okay not to know all the answers – in fact, it can be a good thing.  Getting comfortable with uncertainty that then allows you to approach investor outreach with curiosity and excitement instead of anxiety and stress keeps you open to listening to new perspectives and to building a relationship with a potential backer or advisor. 

An amazing entrepreneur I know recently advised, “Seek the questions that need answers.”  Brilliantly said.  In other words, you can’t know what all of the questions will be. So instead of recoiling from or fearing them, seek them out.

Those questions you haven’t thought of before are the ones that may catch you off guard. But what if you welcomed that discomfort? Suddenly, you’d open yourself to interactions that will challenge your thinking, lead you to define what you want, and ultimately steer you towards a fuller vision for your business, its potential, and for yourself.