The investment process works as a filter, sorting business plans, pushing some to the top and others out of the way. This filtering process is a good thing for many entrepreneurs who have the sense to listen to it. If the investment community does not invest in a plan, there may well be some very good reasons why not. There are many cases where people who did not listen to investors and pushed their plan anyway, borrowing too much money, investing funds of friends and family, and ending up in failure. Here are the following ways you can deal with rejection by investors.
Identify the reasons why you were rejected
One rejection does not mean too much, but if you get consistently rejected, this is more significant and should be looked into.
- You might not be getting good feedback. Investors do not have to tell you the truth regarding your application.
- Is your team as good as you say? Do investors agree?
- Are your assumptions believable? Are investors no believing the huge growth rate and return you have in your plan?
- Are you taking too much, or asking too much?
Think about this business idea
They might be doing you a favor
Take the investment community as a group of well-trained professionals, and then reflect on your rejections. If all of these people chose not to invest in your plan, maybe it isn’t such a great idea after all. Maybe you should completely revise your plan.
Do not insist on failing
You have many experts sending you a warning. Listen to the warning.
You can learn from your past rejections. Try again and reach out to a whole new set of potential investors with a unique approach. Remember that many successful people failed many times before they got their big break.
Why Investors Say No
It might help you to understand that rejections have nothing to do with you. There are a variety of factors including:
- Chemistry between you and the investor
- Whether your product or service is “hot”
- They might have closed some deals and are not looking to currently invest
What you can do is show your best self. Investors like an entrepreneur who makes a big impression. You are subconsciously selling not just your business idea but also yourself. If they do not think you have confidence, they are not going to want to work with you. Many investors are looking for a reason not to say “yes.” Remember that they are putting a lot of money into you and they do not want to have any doubts. If they do not think you are ready, it may be that you are not.
Investors are probably going to have a wall up when they meet you and look for a way to walk away from your proposal. They are given so many opportunities to invest. Regardless of how amazing your product is, if anything is missing, they will reject you.
You might get a lot of rejections, but that one acceptance is the only one that matters.
The Bottom Line
Keep working on your craft. look to different investors and see what their point of is. This will help you not take it so personally. You need to really believe in what you are doing. Just keep going and trying. Allow the rejection to make you better in business.