The best way to build trust with an investor is simple: Do what you say you’re going to do.
In my experience, I’ve found that many first-time founders have the same misconception.
They seem to think that, in order to impress their investors and their board, they need to make big promises and ambitious projections.
I see this manifest itself in so many ways:
- Founders over-promising growth projections in their pitch decks to investors
- Founders setting unattainable quarterly milestones that their team inevitably misses
- Financial projections that border on delusional in their optimism
The problem is that when a founder enthusiastically over-promises, they almost always under-deliver.
It’s a destructive habit that every founder must learn to overcome at one point or another. In the long run, repeatedly failing to meet projections hurts the company, the founder’s reputation, and team morale.
So what’s the best way to overcome this nasty habit?
Start small.
Pay close attention to the small promises you make every day. Then, do whatever it takes to deliver on what you promised in a timely manner.
- Send that follow-up email when you said you would.
- Publish your investor updates on a consistent basis.
- Appear for the calls/meetings you agree to attend.
It may seem small, but those habits you build when the stakes are small define how you behave when shit gets real.
Investors will take notice. Your employees will take notice. Your customers will feel the impact in the product or quality of service.
Want to build the next industry-defining company?
Do it with one kept promise at a time.
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