The Top Ten Lies of Entrepreneurs
hbr.org
In these content segments, Guy Kawasaki discusses the top ten lies told by entrepreneurs and how investors respond to them. He begins by emphasizing that he has heard these fabrications and delusions repeatedly, causing a constant ringing in his ear.
The lies addressed include entrepreneurs claiming that their projections are conservative, which investors often multiply by a factor of 0.1 and add five years to get a more realistic estimate. Entrepreneurs citing market forecasts from research firms to claim their market will be worth billions of dollars is also seen as unimpressive by investors, who prefer facts and context to understand the scale of the opportunity.
Entrepreneurs claiming that big companies like Amazon will sign a deal with them in the near future is met with skepticism, as investors often respond by saying, "Call me when you get Bezos's signature." Investors also question entrepreneurs who claim that key employees are ready to join their company as soon as funding is secured, often asking for verification. Entrepreneurs claiming they have no competition is seen as a sign of either no market or lack of research skills.
Other lies discussed include entrepreneurs asking investors to sign nondisclosure agreements, claiming that big companies are too slow to be a threat, expressing gladness about the dot-com bubble burst, relying on patents for business defensibility, and aiming to capture only 1% of the market.
Overall, Kawasaki aims to encourage entrepreneurs to be more creative and help investors see through these lies. He advises entrepreneurs to understand what investors are looking for and avoid making these mistakes when pitching their ideas.
In these content segments, Guy Kawasaki discusses the top ten lies told by entrepreneurs and how inv