7/6/2021 Tip: 3 Benefits of VCs (besides their money) | Growthink

7/6/2021 Tip: 3 Benefits of VCs (besides their money)

Today’s Quote

“Positive thinking will let you do everything better than negative thinking will.”
~ Zig Ziglar

 

Today’s Tip

Many years ago I was involved in a business targeting the shoe market. Through some connections I made, I was introduced to a potential investor. This investor was one of the original employees of L.A. Gear, a shoe company that at one point went public and was the third leading athletic shoe retailer behind Nike and Reebok.

Within 5 minutes of my conversation with him, one thing became extremely clear: this guy could give me a ton more value than just the dollars he could bring to the table.

He could tell me exactly how the industry worked. He could tell me what trade shows to attend and which to avoid. He could tell me which manufacturers to work with, and how to negotiate the best rates. He could introduce me to the best distributors to make sure my product reached as many retailers and customers as possible. And so on.

I tell you this because far too many entrepreneurs look at investors, particularly venture capitalists, solely as sources of cash. When in reality, many venture capitalists provide a ton more value than just the cash they offer. In fact, the right venture capitalist or VC is often the difference between your success or failure, or achieving minimal versus maximum success.

The three top areas where VCs often provide value include:

  1. Contacts they have in their networks (these contacts can be for partners, employees, customers, distributors, vendors, etc.)
  2. Advice in running your business, based on deep experience in your industry and in successfully growing and nurturing ventures
  3. Contacts to additional sources of capital

Importantly, when seeking venture capital for your venture, find the venture capitalists that have the most relevant experience and contacts in your niche, that can thus add the most value to you.

 

Today’s Resource

Forget Old School!

The “old-school” way of raising venture capital is DEAD! 

And that’s why I created this page for you… to show you how to do it right.

See the right way to raise venture capital <– 

There’s a common mistake almost every entrepreneur makes… and if you approach venture capitalists like most entrepreneurs, you’ll NEVER get funded. 

Here’s how to do it right <—

 

Trivia

Today’s Question:  What is the largest American corporation named after an owner’s daughter?

Previous Question: What do the initials S.O.S. stand for in the brand of steel-wool soap pads marketed under the same name?

Answer: S.O.S. stands for “Save Our Saucepans.” Being able to associate what you do with an existing expression can be helpful in getting people to remember you.

 

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