Don't Listen to Others, Don't Read This

Three times one week, I was pitched an idea by entrepreneurs who scared the hell out of me... because none of them listened to feedback.

In all cases, the entrepreneurs at first appeared to be intelligent and successful people. On paper, they looked good, which is why I agreed to meet with them. As long as they were pitching me - sticking to the words they had practiced - each came across as someone on whom you might be wise to bet.

But as soon as I started giving them feedback and asking questions, their intelligence tickers started running backwards.

The last person you want to invest in is an entrepreneur who doesn't listen, because young companies must be obsessed with listening to customers and responding to their feedback.

For the sake of other entrepreneurs, here are my top three pieces of listening advice:

1.) Repeat each question before you answer it.
Never make the mistake of taking five minutes of an investor's time answering a question s/he did not ask. First, paraphrase the question by saying, "If I understand you correctly, you want to know (how we are going to find our first three customers.) Is that right?"

If necessary, allow the other person to clarify their question. Only start your answer when you are 100% certain you understand the question.

It may seem like a waste of time to do this, but you will be demonstrating your ability to obtain and understand feedback.

2.) Do not formulate your answer while the other person is talking.
People who don't listen decide how they are going to respond before you even stop talking. Once I notice someone doing this to me, I lose interest in talking with them. Doing so is a waste of time; I might as well shut up and go to a movie.

Don't be afraid to pause for five or ten seconds to consider the question. Doing so demonstrates that you listened carefully and that you are giving them the courtesy of a thoughtful reply.

If you actually give a thoughtful reply, no one will remember that it took you nine seconds to start talking.

3.) Don't evade tough questions
Early stage entrepreneurs get a lot of tough questions, because there are so many uncertainties about their fledgling enterprise. They must be able to acknowledge this uncertainty and convince others they will be able to navigate it.

Investors don't look for entrepreneurs who have all the answers; they look for entrepreneurs who will consistently be able to formulate the right answers as time goes by.

Each of the entrepreneurs I met tried to BS their way past tough questions. They said things like, "Our system will be the best," or "That won't be a problem because we are going to hire a really smart user interface designer."

In some cases, I asked the same question three times. It was never answered directly.

The takeaway...

I'm pretty confident that few of the people who don't listen bothered to click on this article. So - just between you and me - never do business with a person who doesn't listen. It will cost you too much time, money and aggravation.