Why You Shouldn’t Tell Investors You’re The Next Uber
I know. It's oh so tempting to tell potential investors that your company is the next Uber because, after all, who wouldn't want to be an investor in Uber. It feels good rolling of your tongue, doesn't it?
The only problem is telling an investor your company is the next Uber or the next Facebook is going to significantly hurt your chances of getting an investment. I'll explain why this is bad, and I'll give you a much better way to position your company in this short video.
Read The Transcript Below
So why shouldn't you say that your company, when you're raising money is the next Uber? Well, let me start by telling you that the minute you do this, you've already lost. Here's why.
Investors have tells. In other words, they have signals and signs that they take from the entrepreneurs that they meet with, and they can see from meeting with these entrepreneurs whether or not things are right or things are wrong. And when the minute you say, "We're the next Uber, we're the next Google, we're the next Facebook or the next whatever." As an investor, I know that that's very unlikely.
And I also know that comparing yourself to Uber or Facebook or whomever, you know, tells me that you don't understand your business well enough because you know what? Uber and Facebook when they raised money, they didn't say that "We're the next this or the next that." They were Uber, they were Facebook, and they had their own unique value proposition.
And guess what? You need to have the exact same thing if you're gonna win. So stop with this thought process of we're the next Uber, we're the next Facebook, the next Google.
Just throw it out of your mind, burn it up. Just don't even think about that. Instead, talk about yourself. Talk about your company, what's unique about your company and why are you going to win?
That's the key. Now, you may have a business model that's similar to Uber's. You may have a business model that's similar to Facebook's. You may have a business model that's similar to Google,. That's fine, but just don't lead with that.
Lead with what's unique about you. You can say that your business model is similar to Uber's or Facebook or Google. Fine, go ahead and do it. Now, I would warn you, especially with Uber, be very, very careful because, if you know anything about Uber, it is a massive money loser. It Is losing money hand over fist, and that may not be the smartest company to compare yourself to.
Now, having said that, if you compare yourself to Facebook or Google, which are big money makers, that may be a little bit smarter and more defensible from a business model standpoint. But remember, focus on what's unique about you. That's the key to getting investment, not saying you're the next Uber, Google, or Facebook. I'm Brett at www.brettjfox.com have a great, great day.