Having Problems Raising Money for Your Business? Mega Tip 2

Last night, while mowing the lawn, I was thinking about some of the ways I was able to break through the barriers and raise both Venture Capital and Angel funding – and while walking backwards and forwards, one of the main ways just sprang into my head.

I thought I would share this Fund Raising Mega Tip as it really works…

With the first business I started, I almost stumbled across investors and with each business, the same has been pretty much true – and even, when I think about how it all unraveled…even when I was consciously out to raise $5-6 million bucks from the Venture Capital community.

Now, if you are actively out there or even if you will be soon you’re probably either scratching your head in wonderment and disbelief or about ready to throw that coffee cup through the computer screen in disgust…

He almost tripped over his investors?

Crap – I don’t believe it, I’ve been banging my head against a brick wall for months or expect to be soon, and still no investors or a term sheet in sight…

So – let me tell you that mega tip I promised…and it really DOES work

…no kidding….

If you go out looking for cash, you will end up getting lots of free (and probably worth what you paid for it… 😉 ) advice from angels and investors about what you need to do to make your business investment ready…

…and, unless you’ve hit some really exciting milestones in your business, that’s probably all you’ve got so far or probably all you’ll get.

Depressing huh?

But there is another (easier…) way…

So – again, if you went out and asked for cash, you probably got ‘advice’…

So what do you do?

Here’s the beginning of the mega tip #2…

You flip that around…

You DON’T go out and ask for cash….

You go out and ask for ADVICE…and it will lead to cash if you are asking the right people…

Still scratching your head?

Let me explain…

Go out there and find some people who have been there and done it already – (I highly recommend a mentor or three whatever happens) – but…

We’re talking about raising cash here – so – go out and find those people that have been around the track before and, making sure they understand how you appreciate their experience, ask to spend some time with them to benefit from this experience. They probably will – ego is involved, and they will doubtless appreciate the recognition of their accomplishments from someone who can sit at their feet and learn from one of the masters… (…tongue in cheek of course but you’re getting the pitch right?)

Now, assuming you strike up a rapport – you will probably find that they’ll want to help – and then they’ll do that magical thing…they’ll refer you to people that can help…

No lets stop here – if they want to give you names, numbers and emails – you should suggest that an email out of the blue from you will likely end up in the email junk folder. Tell them you’ll only get the time of day if that person know’s you’ve come them – so, ask them to send each of these contacts an email and either cc you or bcc you.

When that happens – reply all and away you go.

A suggestion – check back with the mentor reasonably regularly, tell them how you’re getting on, especially with their contacts, keep them engaged – you never know, you might need them when it comes time to negotiate or at any other time…

This has happened to me often…but, and this is critical…actually go and spend time with the absolute focus on learning as much from that person as you can…do NOT go there, nod a few times and wait for them to crack open their network – they’ll know in an instant and after your coffee, you’ll find yourself on the sidewalk, wondering what went wrong.

So – mega tip #2 – go out looking for advice and it will likely lead to referrals and ultimately cash…having someone who has already won their spurs, tell potential investors to take a look at you is magic!

Mega tip #3 coming soon.

Does all this stuff make sense? Any questions or suggestions?

If you liked this posting – tell a friend, hell…tell California…tell the world…. 😉

Join my mailing list and you’ll be one of the first to hear about Mega Tip #3.

And by the way – I offered help on my post below – I meant it – if you have ANY questions, I’ll either do my best to answer them in a follow on posting, or find someone that can. Thanks to those that have already sent me an email…so email or comment please…

Andrew

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