What’s Better: Pretending to know or honestly not knowing?

As an entrepreneur launching a new venture, how important is it that you know all the answers to the most common questions you’ll get from potential investors?

What’s your customer acquisition cost?

What’s going to be your pricing model?

What’s the lifetime value of a customer?

What’s your churn rate?

What are your risk?

These are all tough questions anyone thinking about investing in your business will ask. You better have all the answers right?

Wrong?

Josh Kopelman, VC at First Round Capital makes a great point about not knowing all the answers in a post titled “I don’t Know” he wrote on his Red Eye blog.

If you have been reading this blog for awhile, you know by now I like to go back in the history of the blogosphere to find the best entrepreneurial advice. This post from Kopelman is no different as it comes from back in 2008.

Kopelman’s insight is simple. He states:

No one expects a pre-launch company to have all the answers. (In fact, we get scared if you think you have them).

This is absolutely a great post to read as Kopelman also gives two scenarios of two different entrepreneurs responding to his questions in an investment meeting. One he finds credible, the other he does not.

Read the full post on his blog right here.

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