Growthink Blog

Be Like Mike...In Your Investor Meetings


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According to the book "How To Be Like Mike: Life Lessons About Basketball's Best," Jordan's practice habits and conditioning regimen amounted to an "almost alarming harshness."

In fact, many experts, such as Florida State University professor K. Anders Ericsson, argue that practice continually trumps talent. Prominent examples of success attributed to continuous practice besides Jordan include:

  • Bobby Fischer: yes, he became a chess grandmaster at the ripe age of 16. But, he had nine years of intensive study and practice before this.
  • Warren Buffet: who is known for his extreme discipline and the significant time he devotes to analyzing the financial statements of organizations he considers investing in.
  • Winston Churchill: who is widely considered one of the 20th century's best speakers; it is said that he compulsively practiced his speeches.
  • Tiger Woods: who developed rigorous practice routines from an extremely young age. He continues to devote hours upon hours each day to conditioning and practice in order to improve his performance.

These same practicing principles apply when you are selling your company and your products/services to investors, customers, partners and/or employees.

With regards to your elevator pitch, which is often your opening communications with all outside constituents, practice it over and over again until it flows from your mouth and causes prospects to nod in agreement and understanding each and every time.

With regards to your investor presentations, you should practice them over and over again. And when you practice them, you should think about the goals of your presentation and simulate the questions you might be asked.

For example, you should be thinking:

  • What is the outcome of the meeting that I am seeking?
  • What questions about my business will the investor have, and how will I most quickly and easily answer them?
  • What investment objections might the investor have and how will I overcome them?
  • What will be the signs that my presentation is going well, and how will I adapt if it is not?

By practicing your presentation over and over, you will get better and better at it. Just hearing yourself saying the words out loud will help. You will hear what sounds good and what doesn't.

Likewise, you should practice your presentation on real people -- your advisors, friends or family members. And after these mock presentations, ask them to recite back to you the key points you made. Importantly, make sure they recall the key points that you want to convey. If not, continue to improve your presentation content and your delivery until it reaches perfection.

Growthink Again Makes Inc. Magazine's Top 50 and Top 100 Lists


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I am very happy to report that Growthink was named to the Inc. 5000 list for the 2nd year in a row.

We were ranked as one of the country's 50 fastest-growing financial services companies (#45) and one of the 100 fastest-growing businesses headquartered in Southern California (#71).  Our comprehensive survey ranking was 1,042 out of the 5,000 fastest growing companies in the country.

Our standing is a testament to the work ethic and passion of our people as we navigate these historic markets. And our continued success highlights the power and importance of small business and entrepreneurship to the American economy.

I am also happy to report that in spite of my fears of a slow  business summer, August has proven to be an incredibly busy month here at Growthink. Our 3rd quarter revenue numbers are on pace to come in at over a 30% uptick from Q2, and as importantly, the quality of our new client portfolio deals is incredibly high.

For a snapshot overview of some of the rockstar companies that we have brought on recently, click here.

How Can YOU Get Involved?

If you believe in emerging technology and in American entrepreneurship, if you're tired of the losing stock market game, and are open to the new and the different, then we should talk.  


Best regards, and look forward to connecting.
--
Jay Turo
CEO
Growthink, Inc

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Hispanic America - Go Where the Growth Is


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It is no secret that Hispanic America is exploding.  As the fastest-growing sector of the U.S. population, the U.S. Hispanic population is projected to triple from its current 45.5 million, to over 150 million by 2050.

And this exploding demographic group spends money - over $1 trillion in 2008 alone.

Why Should You Care?

Well, if you are looking for a dynamic, long-term macro-growth sector and one filled with special situation opportunities - then you should care.

Try Beverages.

Of the $210 billion U.S. consumers spend on beverages each year, Hispanics spent $24.8 billion of that.  And with rising affluence, the "ready-to-drink" Hispanic-focused category is one pulsating with deals.

Who Says So?

Well, only some of the biggest beverage and consumer products companies in the world - like Coca-Cola, Pepsi, Kerin (of Japan), Pernod Ricard, China Water, and Inbev - which shocked the world with its $52 billion acquisition of Budweiser last year.  

Putting It all Together

The macro trends here areas simple as 1-2-3.  1) Exploding Hispanic Population. 2) Rising affluence - leading to exploding demand for consumer products and 3) Robust sector acquisition activity.  

Now for the micro:  Find a company that 1) Has the right product with the right distribution. 2) Is targeting a niche sector that is unoccupied by the big boys and 3) Isn't so big and well-known that the "business as  opportunity" has passed.  

Best regards, and look forward to connecting.

--
Jay Turo
CEO
Growthink, Inc
 

P.S. Are you as sick and tired of the whiners and doomsdayers as I am?  This aint your granddaddy's world.  It is filled with ONE THOUSAND TIMES more opportunity than the good old days ever were.   You just need to know where to look. 


A Great Tactic for Both Pitching Investors & Thriving On Twitter


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I attended a great online marketing conference a few months ago and learned a lot about marketing your business via Twitter.

The key Twitter advice that was given was to treat Twitter interactions just as if they were offline in the "real world."  That is, act just like you'd act as if you were meeting at a cocktail party.

For example, at a cocktail party you wouldn't go up to someone and start screaming "this is what I do" and "buy my product now." (A lot of people do this on Twitter.)

Rather, you would get to know the person, ask them some questions, and hopefully provide some valuable information and advice. This process builds rapport, shows them that you care about them, and positions them to reciprocate in the form of wanting to learn more about and support your business.

So, how does this relate to pitching investors?

Well, I recently read an interesting blog post by Nic Brisbourne, a venture capitalist based on the UK. The key message of Brisbourne's post was that entrepreneurs should pitch him as if they were pitching their best friend.

In doing so, entrepreneurs should:

  • Give the information straight
  • Keep it interesting
  • Deliver it like a conversation rather than like a fire hose
  • Try to inject some humor
  • Do as much listening as talking
  • Focus on the areas that your friend wants to hear about
  • Adjust the length of the pitch to the level of interest

Like in your Twitter conversations, it's not all about you. You need to listen to the needs of your investor audience before you pitch them. You must develop rapport. And you can't pitch, pitch, pitch. You need to slow down and deliver your pitch in a more integrated fashion (such as giving some information, allowing the investor to ask questions, and responding as appropriate).

So, before you speak with your next prospective investor, you should create a checklist in your mind. Make sure you understand the needs of the investor, make sure you ask questions and do a lot of listening, and make sure that you effectively convey your message without being overbearing.

How To Make Your 33 Wishes Come True


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I came across a very interesting advertisement in my Sunday paper the other day.

The ad was from a psychic named Maria that promised to allow you to achieve up to seven of 33 possible wishes.

Now, before I go any further this seemed to be a scam, and in fact, upon checking online, this psychic unfortunately appears to have been scamming people around the world for many years.

However, what I found really interesting was the list of 33 wishes that the advertiser supplied.

I figured that these scammers (since they probably have spent millions in advertising) did some research to ensure that these 33 wishes were universal; that is, that they pretty much sum up the wishes of most people. From a marketing perspective, this is something I found very interesting.

Below are a handful of the wishes on the list that stood out to me the most.  Believe it or not, I firmly think that each of us CAN achieve each of these wishes. So, below each wish, I have provided my thoughts regarding how to achieve them  -- without psychic assistance.

1) Sell or set up my own business

Start learning now to start, finance, grow, and exit your company.

2) Have a monthly income of $5,000.00

Start a business. Work hard. Make it successful.  $5,000/month is nothing if you have a successful business.

3) Win enough money to never have to work again

Build a successful company. Sell it.

4) See my kids do really well in their studies

Work hard in starting and growing your successful company. Because you are the boss, you can spend more time with your kids helping them. Your hard work will also provide the funds to hire a tutor as needed.

5) Be on TV

Once you've started that successful company I've mentioned a couple of times- hire a good PR firm.

6) Attract men/women

Working hard and being successful will give you the confidence to better attract members of the opposite sex.

In fact, the majority of things on this "wish" list...

  • Finding a job which is enjoyable and pays well
  • Be able to stop working with a substantial monthly income
  • Solve my financial problems once and for all
  • Get a new car
  • Travel around the world
  • Have enough money to help out my family
  • Retire with enough money to have no worries
  • Buy a boat
  • Buy a house
  • Go on a cruise
  • Have a house in the country
  • Success in an important competition
  • Be the friend of wealthy people
  • Never have any more money problems



..can all be attained by starting and growing a successful business. Let me repeat that - You can have virtually everything you want if you work hard and start and/or grow a successful company.

It's that simple. Anyone who falls for Maria the Psychic's scam should be ashamed of themselves.  Success simply does not come without hard work.

I have, unfortunately, seen people work very hard for others and not achieve the success they wanted.  That is why starting your own company is so critical if you have not already done so.

Work hard. Work smart (I consider working "smart" as investing in expert information that allows you to choose and complete your tasks more effectively and efficiently). And most of those 33 wishes WILL come true.


The One Thing You Can't Live Without


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If you're like me, there's one thing you probably take for granted. Interestingly, this one thing is something you can't live without. At least not for long.

But fortunately, there are some cutting-edge entrepreneurs working wonders on solving the challenges of this one thing.

What is it?

Water.

All around the world water shortages long ago crossed the crisis threshold.  In California.  Arizona.  New Mexico. Georgia and Florida.  The Middle East.  China.

Too many years of antiquated public policy, population and economic growth, climate change, and unsustainable agriculture have strained water resources in all of these places to and beyond the breaking point.

The American Entrepreneur to the Rescue

The greater the adversity, the greater the opportunity. And in the dynamic technology landscape of "new water," American entrepreneurs are leading the way. 

A select cadre of under-the-radar water startups are developing game-changing technologies to develop, purify, store, convey, and conserve water.

Meet the Industry Leader

I would like to invite you to an exclusive opportunity to meet, via web conference, the CEO of one of the fastest-growing and innovative water companies in the world.

He will talk about the state of the next generation technologies out there - distributed desalination, nano-particle membranes, energy-efficient reverse osmosis, and demand management.

And he will tell us where the smart money has been going lately, and who stands to profit from the $15 billion the Obama stimulus package targets for water technology and infrastructure investments.

Best regards, and look forward to connecting.

--
Jay Turo
CEO
Growthink, Inc

P.S. To make money in the new business world order, it is imperative to focus on deals and ideas that have a strong, blended public and private sector focus.  You can search the whole world round and not find a technology and a marketplace that fits this description better than water. 


Kirill Makharinsky & How To Predict A Startup's Success


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Several months ago, I came across YouNoodle, a website which offers tools and a platform to help startup companies succeed. What I was initially drawn to was their Startup Predictor tool. The idea of a tool that could help predict the success, or lack thereof, of a new company really intrigued me.

So, I contacted Kirill Makharinsky, one of YouNoodle's co-founders, to learn more. Kirill was gracious enough to do the interview and provided tons of valuable information.

I started by asking Kirill about the Startup Predictor, and specifically about what are the key indicators that a new business will be successful.

Kirill started by explaining that they created the startup predictor after looking at rich data on approximately 3,000 companies. From this data, they determined patterns between initial conditions (particularly in terms of the team and what their intentions were) and the end result.

The results found really strong indicators that the following three factors are key indicators of a venture's future success:

1. The quality of the team in terms their experience and accomplishments, and how well the team members know each other.


2. The amount of commitment the team has in terms of their opportunity cost - specifically how much they are giving up to be in the venture (e.g., leaving a steady, high-paying job) and how much skin they have in the game (e.g., how much of their personal funds have they committed).


3. Having advisors. YouNoodle found that having the right advisors, even if they provide minimal amounts of time contributing to the business, strongly impact the future success of the business.

Kirill went on to discuss fundraising. He explained how allowing two advisors to take part in forming and modifying YouNoodle's business idea helped secure them as angel investors. He also gave a great case regarding why you should contact investors BEFORE you have a concrete business idea when raising funding.

Kirill also discussed why the quality of your business idea is over-rated, and provided a great answer to my question regarding the top 5 things entrepreneurs really need to know in order to be successful.

To listen to excerpts of this interview click the blue triangle on the player below.


To listen to the full interview and/or read the transcript, click here:  http://www.growthinkuniversity.com/members/326.cfm

To visit YouNoodle, click here.


New Capital Raising Articles on Growthink.com


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We just published a new series of capital-raising articles on the Growthink website, within our new "Capital Raising Resource Center." 

 

Angel Funding Articles



Bank & SBA Loan Articles



Creative & Alternative Financing Articles



Grant Articles



Venture Capital Articles

 

Stay tuned! In the coming weeks and months, we'll be adding new articles and videos.

 

Are there any specific capital-raising topics you'd like us to cover?  Let us know by leaving a comment below.

 

Are you an entrepreneur looking to find angel investors for your deal? Learn proven networking, presentation, and negotiation tactics from Growthink's Angel Investor Guide


The Creative Fundraising Strategy That Became a Successful Business


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I'll be the first to admit that this fundraising strategy isn't for me. But I have a wife and kids, so maybe, a few years back, I would have given this one a shot.

The strategy: renting out the extra space in my apartment or house to travelers on a budget.

For three entrepreneurs, this fundraising strategy took on a life of its own. The three entrepreneurs, Joe Gebbia, Brian Chesky, and Nathan Blecharczyk, used this creative fundraising strategy (renting out the extra space in their apartments) to generate revenue after they quit their jobs to become entrepreneurs.

But, interestingly, they found the strategy so successful, that that turned it into a business that is now thriving.

The business, Airbnb is essentially the "eBay of space." It works like this...People list their apartments and houses (if they aren't going to be home), and even spare guest rooms, futons, and couches on the site and set a price per night.  And then travelers who are looking for a place to stay search the listings for an accommodation that's right for them.

So, real estate owners and renters earn money, travelers get a discount, and Airbnb earns a 10% fee on all transactions. A true win-win-win. As you might imagine, Airbnb is doing very well, and is now in over 1150 cities in 82 countries.

My takeaways/lessons here are two-fold: first, if you have extra space or are traveling, you should consider listing your space on Airbnb to generate some revenues to invest in your business. Second, as this company illustrates, you can never be too creative in coming up with ideas to fund your business.

If you want to see a brief video of the Airbnb team, including their story of how Barry Manilow's drummer is one of their top users, here is a cool clip:

 

 

 


An Interview with Brette Simon, Partner at Jones Day


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The other day, I had the pleasure of interviewing Brette Simon.

Brette is a partner at Jones Day, a top tier law firm with offices in New York, Los Angeles, Silicon Valley, and several major international cities.

Brette advises companies and investors in private equity and venture capital financings, and is on the Venture Capital and Private Equity Committee of the American Bar Association.  She is also a member of the Los Angeles Venture Association.  And Brette was recently recognized by The Deal - a popular venture capital and private equity publication - as one of the top 13 dealmakers in the country. Very impressive.

So, naturally based on her background, I thought Brette would be the perfect person to interview about the legal aspects of raising capital.  I was right.

Brette started the interview by discussing the advantages and disadvantages of certain forms of incorporation, and noted that a C-Corporation is what most venture capitalists prefer. She did note, however, that there are many nuances with regards to the corporate structure with regards to tax treatment, so the choice of your type of entity could become more complex.

We then shifted topics and discussed how entrepreneurs can protect their business ideas and intellectual property. To this, Ms. Simon discussed non-disclosure and confidentiality agreements. She also made the key point that entrepreneurs must make sure to get their employees, consultants and vendors (and everybody else who may be working with them) to sign PIIAAs (Proprietary Information and Invention Assignment Agreements), in order to make sure that the company owns all the intellectual property that is being created.

Ms. Simon went on to discuss other items that can help protect one's intellectual property such as patents and staging diligence.

We then discussed several other key topics including:

* Some of the main laws and regulations that entrepreneurs need to know about and act in accordance with when raising capital
* The documentation needed to raise capital
* What you should be focusing on when you look at a VC's term sheet
* Misconceptions that entrepreneurs often have about the legal process
* The right time for the entrepreneur or management team to hire legal counsel during the process of raising capital

I really enjoyed conducting this interview. Brette Simon obviously knows the legal issues with regards to raising capital inside and out and is a wealth of knowledge!  This is definitely information that all entrepreneurs must know when raising funding, particularly venture capital.

To listen to excerpts of this interview click the blue triangle on the player below.


To listen to the full interview and/or read the transcript, click here.


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Jay Turo

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