The other day, my wife came home from a meditation class with a sheet of paper. On it was a verse written by Mother Teresa. Supposedly, these same words were written on the wall of Mother Teresa’s home for children in Calcutta, India. They were as follows:
While I believe these words to be true for all people, I find them especially relevant for entrepreneurs.
As entrepreneurs, we have elected to take on a challenging life, and a business life that is clearly harder than that of the average worker. We must constantly take risks, and success is never guaranteed.
As a result, to succeed as an entrepreneur takes a special mindset and commitment. Thinking and acting like an ordinary individual will get you ordinary results. And ordinary results just don’t cut it as an entrepreneur. Unless you act extraordinary, you can’t possibly achieve the success you desire.
This being said, below are my entrepreneurial comments and thoughts to Mother Teresa’s writings.
People are often unreasonable, illogical, and self-centered.
Forgive them anyway.
These people may be your customers, your employees, your investors and/or your family (who I will hereafter call your “constituents”). Forgive such actions when you come across them. And try to surround yourself with people who don’t do them.
If you are kind, people may accuse you of selfish, ulterior motives.
Be kind anyway.
Be kind to your constituents. If not, they will not follow you.
If you are successful, you will win some false friends and some true enemies.
Some of your current constituents will not want to see you succeed. Succeed anyway. And create a new group of constituents as needed (perhaps a peer group or Board of Advisors) of successful people you want to emulate and who DO want you to succeed.
If you are honest and frank, people may cheat you.
Be honest and frank anyway.
Be honest in all your dealings with your constituents. Entrepreneurs who cheat never win; it always catches up with them. If someone does cheat you, learn from it and don’t let it happen again (yet still be frank and honest).
What you spend years building, someone could destroy overnight.
As an entrepreneur, your job is to build, build, build. Build a great company. But while building, think about ways that others will NOT be able to “destroy” you. For example, a business model in which you have customers on a subscription plan (think mobile phone service providers) is very hard to destroy. Always think about ways in which you can “lock up” customers, employees and other constituents. How can you make it so that they’ll never want to leave you?
If you find serenity and happiness, others may be jealous.
Be happy anyway.
Yes, when you achieve success as an entrepreneur, many others will be jealous. And many will call you “lucky.” Yes, you’re “lucky” because you have the right attitude and mindset that allowed you to work hard and persevere. And you’re “lucky” because you invested your time reading articles (like this one) and learning the skills you needed to become a successful entrepreneur.
The good you do today, people will often forget tomorrow.
Do good anyway.
Keep doing good to your constituents. Doing good once is not enough. Continue to astound your customers, employees and others so they follow you to the finish line.
Give the world the best you have, and it may never be enough.
Give the world the best you've got anyway.
To succeed as an entrepreneur, you need to give 100%, and keep giving it. Never surrender. Never back down. Rather, persevere and make it happen. And if the best you have isn’t enough, then get others (advisors, peers, employees) who can give alongside you so collectively you ARE able to give enough.
You see, in the final analysis, it is between you and God.
It was never between you and them anyway.
Succeeding as an entrepreneur is more about you succeeding within yourself and less about you beating out a competitor. If you are thinking and acting the right way, you will naturally surpass your competition and achieve great success.
Right now is the time for you to “do it anyway” and become the successful entrepreneur you’re capable of becoming!
In writing his book, "Rich Habits - The Daily Success Habits of Wealthy Individuals," author Thomas C. Corley studied the daily habits of hundreds of wealthy and poor people.
He defined wealthy people as those earning at least $160,000 annually and owning assets of at least $3.2 million. Conversely, he defined poor people as having an annual income below $30,000 and less than $5,000 in assets.
Read below to see the stark differences between the two groups.
1) Maintain a to-do list
Answer for successful entrepreneurs: Maintain a To Do List
2) Wake up 3+ hours before work
Answer for successful entrepreneurs: Most entrepreneurs pretty much work all the time, and clearly work more than the general 9-5 work day. I prefer highly organized work to a ton of work. But either way, you need to put in the hours to succeed as an entrepreneur.
3) Listen to audio books during commute
Answer for successful entrepreneurs: Educate yourself during your commute. EVERY single one of the video training products I offer has an audio download component so you can listen to them during your commute. Yes, I did this on purpose.
4) Network 5+ hours or more each month
Answer for successful entrepreneurs: Network more. Networking is a great way to meet great people who can become: investors, mentors, advisors, customers, employees, partners, etc. If you need more of any of these things, then network more.
5) Read 30+ minutes or more each day
Answer for successful entrepreneurs: Read at least 30 minutes each day. Here I’m probably preaching to the choir, since you’re reading this essay of mine - good job!
6) Live a healthy lifestyle
Eat less than 300 junk food calories per day
Exercise aerobically four days a week
Answer for successful entrepreneurs: Treat your body well. You need the physical and mental energy to succeed.
7) Use television smartly
Watch one hour or less of TV every day
Watch reality TV
Answer for successful entrepreneurs: Don’t watch too much television and when you do, don’t watch garbage.
The final, and most important habit for the world’s wealthiest entrepreneurs is that they have built and sold their companies. Of Americans with a net worth of $5 million or more, an overwhelming 80% of them are entrepreneurs who have sold their businesses.
So, in summary (and feel free to print this out):
1. Maintain a To Do list
2. Wake up early/work hard
3. Listen to audio books during your commute
4. Network more
5. Read 30+ minutes each day
6. Maintain a healthy lifestyle
7. Don’t watch too much (or garbage) television
8. Build a sellable business
When you think about it, none of this is really that hard. Yes, YOU can do it!
Great leaders delegate. They get other people to do the work for them. They focus on vision and strategy, and getting their people to perform at their highest possible level. And when their people perform, the company executes on the strategy and achieves its vision.
While much about leadership has been written over the years, much of it has changed. Because many of the old rules and strategies, such as the “it’s my way or the highway,” strategy no longer apply. People are different today than they were even a decade ago. We have different needs and thinking, and nurturing your team to get them to perform is more complex.
In fact, when it comes to outsourced employees, leadership is even more complex. Because when you can’t look your employee in the eye, it’s hard to tell if they’re bought into your strategies and goals, and if they will perform to your standards.
What makes this so more important is that any good HR strategy nowadays includes outsourcing. Because outsourcing certain roles allows your company to achieve great progress at a significantly lower expense, and without increasing your fixed costs which decreases flexibility.
This being said, the following are five things a great leader would never do when managing their outsourced employees.
1. Rely exclusively on email. Email is generally the easiest way to communicate with outsourced employees, particularly if they live in different time zones. However, email is rarely the most effective communications method, particularly when you want to motivate people. Rather, make sure that occasionally you also use telephone calls and video calls using services such as Skype. By seeing your employee, and having them see you, you can gauge and influence their levels of engagement and excitement.
2. Give vague directions. If someone’s seen you do something several times, and then you ask them to do it, they might do a good job. But if someone’s never seen you do something, particularly when they don’t work in your office, they’ll generally fail wildly. Unless, that is, you give them precise directions. When you outsource a task, be sure to document precisely what you want done and why. This will guide the employee and set expectations for them to meet.
3. Wait to see finished work. When you outsource a project to someone, don’t wait until the end to judge their work. Rather, check in periodically. Ideally, break the work into pieces. For example, if an outsourced employee is responsible for creating a video, natural pieces or project stages might include: 1) writing the video script, 2) sketching or finding the images to be included in the video, 3) creating a video draft, 4) finalizing the video. If you wait to see the final video, you inevitably will be disappointed. Rather, check in after each stage and provide feedback. The end result will be infinitely better.
4. Fail to set deadlines. Employees, particularly outsourced employees who don’t see you, need deadlines. If not, they’ll generally take way too long to complete a task. When employees work in your office, they should have deadlines too; but, because you see these employees, if there is a deadline, you’ll simply remember to tell them. You don’t have this luxury with virtual employees, so make sure they know the deadline for each of their projects.
5. Fail to give time expectations. Even when you set a deadline, you still must set time expectations, particularly if you are paying your outsourced employee on an hourly basis. While two people can both complete a project in a week, for example, you’re clearly paying a ton more if one worked ten hours per day and the other two. So, at the beginning of each project, have the employee give you an estimate of the work hours, and have them check in periodically to let you know if their estimate is on track or not.
When you outsource properly, you can dramatically grow your company at a fraction of the cost as your competitors. But, make sure you avoid these leadership mistakes; when you do, you can effectively manage your outsourced workforce to get the most benefit from this key HR strategy.
Your website is a critical component of your marketing strategy. If set up properly, your website can be the source of tons of new customer leads. And even if they hear of you elsewhere, in many cases, customers will still visit your website to learn more about you.
So here are 5 quick and easy ways to make your website more effective.
#1: Establish a blog
Setting up a blog is the easiest way for you to continually add new content to your website.
And each piece of content you add is another opportunity for someone to do a search (on Google.com, etc.) and find your company.
Also, your blog posts can be used to show your subject matter credibility, and further prove to prospective customers that you are the best provider in the market.
#2: Promote your blog posts
In addition to adding new blog posts (ideally once per week, and at a minimum twice per month), make sure to promote your posts.
You can promote your posts by posting them on Facebook, Twitter and other social media sites.
Your goal is to drive more traffic to your blog posts. Also, try to get visitors to comment and/or ask questions about your posts. And then, respond to their questions and comments.
Finally, remember that each question posed by your visitors may be a great topic for a future blog post.
#3: Create videos
Particularly if you don't like to write, create videos.
Videos that teach prospective customers how to do something are extremely valuable. And they can be used to "soft-sell" your product and/or services.
For example, let's say you offer carpet cleaning services. A short video teaching people how to tell if their carpet is in need of cleaning would be extremely valuable. And, people who watched it would be prone to purchase your service.
#4: Add sharing buttons
Particularly if the content on your blog is good, make sure it's easy for visitors to share it.
You can quickly and easily accomplish this by adding buttons that allow people to share your posts on Facebook, Twitter, LinkedIn, StumbleUpon, and other social media networks.
This is how blog posts go viral; by making it easy for others to share them.
#5: Make your website mobile and tablet friendly
More and more people are visiting websites from their mobile devices and tablets. But not all website look good on these sources.
Make sure your website does. If it doesn't, there are some inexpensive services that manage this for you. Such services can tell when a visitor is not coming from a desktop, and will automatically push them to a version of your website (which they create and host) that is more mobile/tablet friendly.
Each of these five tips can be implemented very quickly and easily. And they will result in more customers and sales. So make completing this a priority.
Suggested Resource: Want to learn my complete strategy for methodically maximizing your online traffic, leads, sales and profits? Then check out my Ultimate Internet Marketing System.
Both Crowdfunding and Peer-to-Peer Lending are great new ways to raise money for your business. Below I explain the differences, and some of the advantages and disadvantages of each. I end by determining which is better.
Peer-to-Peer (or P2P) Lending is one person lending money to another person at a pre-defined interest rate. It's basically debt capital without the bank or traditional "middle man."
The benefit of P2P Lending is that 1) the interest rates are typically lower, and 2) the likelihood of getting the loan is greater than the likelihood of getting a traditional bank loan.
There are several popular websites that connect borrowers and lenders directly. The biggest two are:
The downside of P2P lending is that you need to repay the loan and that there are limits to how much you can raise (generally only $25K at a time).
Crowdfunding is raising money from the "crowd" or general population. In Crowdfunding, you don't need to repay the amount raised. Rather, you give rewards (usually the product you want to develop) or equity to those who fund you.
The most established rewards-based Crowdfunding websites are:
On the equity side, Crowdfunding if still extremely new and still only limited to accredited investors (expect this to change shortly). Crowdfunder is one of the leaders in the equity based Crowdfunding market now. We will see how it grows and other sites pop-up as non-accredited investors enter the market in 2014.
So, Which is Better?
I prefer Crowdfunding over Peer to Peer Lending because of the potential to raise more money through a larger group of people, and not having to pay the money back. I also like that all the people who crowdfund you 1) are potential future customers, and 2) can spread the word about your business.
However, the two funding sources are NOT mutually exclusive, so definitely consider using BOTH Crowdfunding and Peer to Peer Lending, since both are great forms of funding.
Suggested Resource: Do you want Crowdfunding? If so, don't try to raise it from scratch -- the 14-step blueprint already exists. Get the Crowdfunding blueprint here.
"Knowledge is power." This is a well known saying commonly attributed to Sir Francis Bacon, who was an English philosopher, statesman, scientist and author.
In business, knowledge certainly is power. For example, if you knew where your market was heading, you would have a massive leg up on your competition.
So, how can you gain more knowledge to outsmart your competition? Here are 7 ways.
1. Learn from your customers. Marketing consultant Jay Abraham once said, "your customers are geniuses; they know exactly what they want."
Because your customers know what they want, speak to them. And don't just speak to your current customers, but speak to your competitors' customers too. Learn to listen deeply to your customers and to ask probing questions. And when you hear consistent feedback (and not just one customer saying something), take action.
2. Learn from your competitors. Watch your competitors closely and learn from them. What do they seem to be doing well, and how can you better emulate them in this respect? What are they doing poorly that you can capitalize on?
Importantly, don't just copy your competitors until you know that what they are doing works. For example, if a competitor starts offering a 25% off discount for new customers, don't copy them right away. Rather, wait and see what happens. If the competitor stops offering the discount quickly, then the promotion probably didn't work. Conversely, if the competitor is still offering the discount 6 months later, it probably did work. Only copy the competitor's "winners."
Also try to figure out what competitors are saying about you. And, if criticism from a competitor gets back to you, don't become defense or dismiss it casually. Rather, engage critically with it. The criticism may prove to be quite helpful. A competitor may be aware of your weaknesses in a way a friend or customer cannot be. So don't disregard negative feedback, but rather consider it carefully, and take corrective action as appropriate.
3. Learn from your employees. Oftentimes your employees have a lot more information than you do. They are the ones who are interacting with customers, and they are the ones that are building your products and providing your services.
Speak to your employees and get their feedback, ideas and suggestions. As an example, nearly all new innovation at Toyota comes from front-line employees. Encourage your employees to come up with ideas and give you feedback. They may also alert you to changes in the marketplace and customer behavior that you need to understand in order to adapt.
4. Learn from your community. This is particularly true for local businesses. Find out what is going on in your community. For example, if your community is heavily involved in recycling, or if the local high school football team just won a championship, then you need to know about it since these are things your community cares about. Importantly, leverage this information. In these two examples, you could offer a sale related to the football team's victory. Or post signs explaining how your business recycles. These actions would position you as part of the community and cause customers to flock to your business.
5. Learn from coaches and consultants. The right coach and/or consultant will have lots of knowledge that you don't. They will have worked with other business owners and "been there, done that" - that is, they will have seen challenges and overcome them already. Because you won't have to "reinvent the wheel," these paid experts can allow you to make the right decisions, avoid mistakes, and grow more quickly. Plus, paid experts can give your business a reality check and keep you focused and accountable.
6. Learn from mentors. The right mentor serves a similar function as a paid coach and/or consultant in that they have experience, expertise and connections that allow you to avoid mistakes and grow your business more quickly. The challenge is finding the right mentor, and setting up the appropriate structure to get ongoing feedback (this naturally happens when you pay a coach or consultant).
7. Learn from other business owners. In previous articles, I have mentioned the massive power of mastermind groups. Mastermind groups are groups of business owners who work together to grow everyone's business. Mastermind groups are incredibly powerful since other members of the group will have already overcome the challenges you face, and thus can give you the answers you need.
Likewise, in many cases, skills and knowledge that have taken other business owners months or years to learn can be transferred to you in minutes. So, you gain massive knowledge quickly, and gain a support group that all shares the common goal of building a great company.
Knowledge certainly is power. Leverage these seven ways to gain knowledge, and you will be able to outsmart and dominate your competition.
If you're looking for funding and/or to successfully grow your business, a little known secret is to find and leverage Advisors.
So, who or what are Advisors? Advisors are successful people that you respect and that agree to help your company. Advisors are generally successful and/or retired executives, business owners, service providers, professors, or others that could help your business.
Advisors generally will not cost you any money (you don't pay them), although I do recommend giving them stock options to incentivize them to contribute as much as possible.
Getting Advisors is not a requirement for raising money, but they have multiple benefits as follows:
1. Practice: if you can't successfully pitch an advisor to invest time in your business, then you're not going to successfully pitch anyone to invest money in your business. So, practice your pitch on prospective advisors first, and use that practice to perfect it.
2. Connections to capital: as successful individuals, advisors often have the ability to invest directly in your company; and/or they tend to have large, high quality networks of individuals they can introduce you to.
3. Credibility: having quality advisors gives your company instant credibility in the eyes of lenders and investors. For example, if you started a new hockey stick company, having Wayne Gretzky as an advisor would certainly give you great credibility (and connections). But even having much smaller names than Wayne Gretzky as advisors can build enormous credibility.
4. Operational success: In an interview I did with Dr. Basil Peters (a wonderfully successful entrepreneur, angel investor and VC), Dr. Peters said that mentors and advisors are an entrepreneur's "single most controllable success factor." Having Advisors with whom you can discuss key business matters as you grow your venture will help ensure you make the right decisions, particularly if they have encountered and dealt with the same challenges already in their careers.
I have seen these four benefits first-hand for my own companies and for companies that we've helped build their own boards. Click here if you'd like to see the list and bios of Growthink's Board of Advisors.
So, how do you build your Board of Advisors?
The steps are fairly simple:
1. Create a list of people you would like to be on your Board
2. Contact and meet with them
3. Secure the best Advisors you meet with
The final step is to hold formal and informal meetings with your Board members to leverage them -- to get them to fund your company or introduce you to other funding sources; to answer key challenges that you are facing, etc.
I must admit that years ago I wasn't thrilled about investing the time to go through the steps of creating a Board of Advisors. But I can assure you; those hours spent have yielded an enormous return on investment. In fact, I should have developed my Board much sooner than I did.
So, go out there and start building your Board of Advisors today. And start reaping the enormous benefits.
Suggested Resource: Want advisors? Want funding for your business? Then check out our Truth About Funding program to learn how you can gain advisors and access the 41 sources of funding available to entrepreneurs like you. Click here to learn more.
When most entrepreneurs start out and realized they need funding, they are typically presented with three options.
The first is debt financing, which is typically in the form of a loan from a bank.
The other two funding options are typically in the form of equity, and they are 1) equity from individual or "angel" investors and 2) equity from venture capitalists.
Importantly, when considering these two sources of funding it is important to understand that most venture capitalists will not invest in companies that have not achieved "proof of concept" (which generally means a working prototype and/or revenues). Also, venture capitalists generally only invest in companies that have the potential to be valued at over $100 million within five years.
These criteria make venture capital inaccessible to most entrepreneurs. Furthermore, angel funding is often a better option since it is much easier to attain.
Consider these statistics:
So while venture capitalists write much larger checks, 15 times more entrepreneurs raise funding from angels.
So why do angel investors fund entrepreneurs? The common answer is that they hope to get a solid return on their investment. Obviously, investing at the earliest stages for a company that eventually goes big can earn the investor 100X their money back or more.
However, there are three lesser known, but equally important reasons, why angel investors fund entrepreneurs:
1. They know, like and trust the entrepreneur. Like with friends and family investments, sometimes angels know and trust the entrepreneurs and want to help them succeed.
2. They feel they can add real value. Many angels have lots of relevant experience that can help the companies they fund, from experience hiring staff to connections with key potential customers or suppliers. If angels can see their involvement adding a lot of value to the company, they might be very interested in investing.
3. Sometimes the angel wants or likes the action. Simply put, angel investing is exciting. It is generally a higher risk/higher reward version of the public stock markets requiring a more entrepreneurial analysis which is highly intriguing. This is particularly the case when the angel investor is a retired entrepreneur or executive.
So, if you are an entrepreneur seeking funding, keep these motivations in mind when you identify, approach and speak with angels.
Because understanding them is often the difference between whether you will raise money or not. Finding angel investors is also easy if you know where to look.
There are three main benefits I typically derive from outsourcing:
1. Cost savings. I'm often able to pay less for jobs I outsource, particularly if I outsource them to people in lower cost-of-living states or countries.
2. Reduce overhead. Usually I outsource projects that are not full-time or that I am able to easily stop if they aren't working out as planned. This reduces my overhead (and allows me to scale down as needed) since unlike a full-time employee, the outsourced people are not a fixed expense.
3. Supplemental work at night-time hours. When you outsource overseas, it often provides great timing of workflow. For instance, in one company I ran, I would create tasks during the day, give them to my outsourced team in India, and they would be done by the time I arrived in the office the next morning.
However, for outsourcing to work, you need to find the most qualified people to which you outsource.
The key to this is to start by getting the largest pool of qualified outsourced providers to apply for the project you need accomplished. Because you want to have as many people as possible to choose from.
Even if you only hire one, you can go back and contact the same pool of talent for future projects. Consider applicants as being in your "rolodex" of people to call.
To help you do this well, here are some tips to consider when finding and judging outsourced people to complete your projects.
Choose Your Outsourcing Platform
There are many sites in which you can find outsourced providers for the tasks you need done. Among many others, these include Craigslist, ODesk.com, Guru.com, Elance.com and 99designs. Some of these sites focus on certain types of outsourced projects like technology and design, while others allow you to find people for all types of tasks.
The process of posting a project is very similar on each of these sites, but there are also minor differences to get acquainted with as you go -- worry about those later and follow these basic steps.
Create a Clear Project Title
Include the work to be done, on what, and in what industry. For example, "Help Making Ebook" could mean anything from research to writing to editing to cover design. Compare that to "Writing 10,000 Word Real Estate Ebook." The latter will be more likely to catch the eye of writers and providers with real estate knowledge.
Create a Clear Project Description
This sounds simple enough, but you should try to answer as many possible questions as you can, which means addressing certain areas, like:
Upload samples of what you need
You can write 5 paragraphs trying to explain the final product, or you can show them something similar you have done before (or someone else's to model yours after).
Most sites will allow you to upload files to show them what they'll be working with or making. You can also insert links in the project description to files, audios, or videos showing or explaining things more vividly.
Choose the time period for bidding
You might be given options like 3 days, 5 days, 7 days, 15 days, or 30 days to accept bids. I would lean towards giving a longer time period, unless the urgency of your project means that you don't have as much time to wait.
But basically, the more time that providers have to find and respond to your project, the more qualified applicants you'll have to choose from.
Also, some of the best providers are also the busiest, so by giving a longer time frame to respond you are more likely to catch them when they're available.
This is not an exhaustive list, but covers the most important elements of a good project posting-one that will put you in a position of strength and cut down your odds of a bad experience. Cover these bases and you'll have more people applying than you can sort through.
Which then leads to the final phase: judging your applicants. In judging which applicant(s) to choose for your project, consider:
1) How they responded to your project request: were they articulate? Did their comments and/or questions make sense?
2) Their portfolio: do they have a website which shows their portfolio of work that you can judge? If so, take a close look.
3) Their ratings. On most of the outsourcing sites listed above, past clients will rate the outsourced person's work. I never use someone who hasn't completed at least 20 projects and has a rating of 4 stars or above.
Follow this advice and you can find the right outsourcers to help you grow your business and profits.
Suggested Resource: If you don't outsource, you can't compete. The math is simple...if your competitors are outsourcing and only pay $X to complete a task, and you pay $3X, $5X or $10X, your competitors will eat your lunch. You simply must outsource to stay competitive. Outsource the right way using Growthink's Outsourcing Formula. Learn more by clicking here.
If you were raising funding 25 years ago, you probably called prospective investors on the phone and sent them your business plan via fax or overnight delivery.
As you can imagine, things are very different today. And email is the number one way to communicate with prospective investors, particularly professional investors like venture capitalist.
The challenge, as you can imagine, is getting their attention. As most venture capitalists receive tons and tons of unsolicited email each day. So, the key is having a great subject line on your email to get them to open it.
Before giving you some subject lines that do work, let me tell you ones that don't. Subject lines such as "Unique Investment Opportunity," "Please Invest in our company," and "Great Investment Opportunity" don't catch investors' attention and turn them off.
So, don't use these. Here are some you can use:
1. Your Involvement in XYZ Company
Where XYZ company is a company that the investor has funded and which is in your general space. You would start the email with something such as "based on your investment in XYZ company, I think you will be interested in what we are doing..."
2. New in the "XYZ Space"
Where XYZ is the "space" in which you are operating in (e.g., the financial software space). The first line would tie the subject line to what you are doing.
3. Referred by XYZ
Where XYZ is a referral source that knows both you and the investor. This works extremely well, but clearly you must first get the referral.
Because referrals are so powerful, go on LinkedIn and/or other networks to see if you already have someone in your network that can refer you to the investor.
4. Comment on Your Post About XYZ
Where XYZ is a blog post that the investor recently wrote about a subject. In your opening line you explain what you agree with in their post and then tie it to your company.
Importantly, after your subject line and introductory line that ties your company with the subject line, you should NOT tell the investor everything about your company.
Rather, this first email should be a "teaser" email. A "teaser" email is an email that "teases" the investor by giving them a bite-sized amount of compelling information about your company.
The goal of the email is to see if they are interested. If they are, you will follow up with more information (maybe your Executive Summary and/or full business plan) with the goal of getting a face-to-face meeting with the investor.
There are two reasons you shouldn't send your business plan in your initial email. First, you don't want to "over-shop" your deal. Over-shopping is letting too many investors know about your company. If too many investors know about you, the law of numbers states that many investors will pass on investing in you (remember, most investors passed on the opportunity to invest in Google years ago).
So, if an investor isn't even interested in your market space or teaser email, they certainly won't invest in your company. And here's what can happen -- an interested investor asks this investor (the one who isn't interested in your space) if they've heard of your company. That investor says "yes" (since you unwittingly sent them your plan) and that they weren't interested. And then their disinterest dissuades the once interest investor from investing in you.
The second reason you don't want to send out your business plan in your initial email is for confidentiality reasons. You just don't want your business plan out there for everyone to see. Rather, wait until the investor shows that they are at least somewhat interested in your venture before sending it.
So, now that you know that you should start by sending investors a "teaser" email, the question is what to include in the teaser.
Here's the answer: the teaser email should include 5 to 6 bullets about your company and should be very short (200 words or less). The goal, once again is simply to create a general interest in your venture so the investor commits time and energy to learning more about it (by requesting additional documents or setting up a meeting).
Your bullets should describe what space your company is in and credentials that make you uniquely qualified to succeed (e.g., credentials of management team, customers serving already or showing interest, etc.).
To summarize, send investors a teaser email instead of your business plan to start. And realizing that they receive hundreds of emails every day asking for funding, make sure your subject line stands out and seems like you're offering them value.