A Fast No, is Better than a Slow Maybe (originally published 3.16.2017)

One of the biggest challenges of any Start-Up, is raising capital.

If you’re ever been down this road, you can understand both the excitement and the frustration.

There is often nothing better than leaving a meeting where you felt you nailed it. There was a nodding of agreement, there was an understanding in the questions, there were a plethora of compliments on your management group, etc.

You go back to your other team members and have to answer the “How did it go?” question and you answer with the proverbial, “It went great, they are definitely interested”.

And therein lies the challenge… now the wait begins.

Let say you did eight meetings and had six that went really well.

These six are no part of your focus, part of your list, part of your hope of funding.

However, these six are also part of your downfall if you can’t move them to a yes or no.

While you’re in the “interested” gap, you have no true direction of where the investor is going.

It is human nature to keep counting these accumulated interested parties in our heads. By doing so, we create a false sense of accomplishment.

That’s where the saying comes from. A fast no, is better than a slow maybe.

I would rather present to eight people and get a fast no if they were not interested.

With a fast NO, looking at the numbers above, you can actually move on and concentrate on the parties that are either truly interested, or on to new potential investors.

Getting to that NO is not something people look forward to, but something you should push toward.

What are some things you can do to get that fast no?

First, set time frames. When you are fundraising, tell the group you are closing out your first round by a specific date. This helps set a sense of urgency not only for the investor, but more importantly for you and your team members.

Second, when you’re leaving a meeting, ask what the next steps are. Ask what their time frame for making a decision will be. Ask what additional information may be needed to help move them toward a decision.

Last, hold yourself accountable to who is really still interested and on the list. If you have a good meeting, realize that is not the final step… it was only the first.

It’s still up to you to follow up, be persistent, and push towards closing the investor.

A fast no is better than a slow maybe; but nothing is better than a Yes definitely.