24/02/2018
Knowing who you are dealing with is key to a successful deal. This is also true when you're making a deal with a bank or investor.
To know someone is to know how they think, and knowing how people think involves learning about what drives their decisions
Most entrepreneurs think in terms of ideas because the idea they have for a startup project drives and energies them. Their idea is the projection of their vision; it’s like a pair of glasses through which they view the world.
Majority of investors don’t think in terms of ideas. Actually, most investors believe that the value of a business idea is very limited – it is the actions after the initial idea is created that generate value. Investors and banks think in terms of risk and return on investment. They accept and operate with different levels of risk.
To a bank or an investor an idea is nothing but a risk, and that’s exactly why many entrepreneurs can’t get funding for their business idea.
Nicolaj Hojer Nielsen - The Startup funding Book
