“I am looking for a lot of men who have an infinite capacity to not know what can’t be done.”
~ Henry Ford
Yesterday I gave you three tactics billionaires use to raise funding. Below I’ll share with you the final two tactics they use and that you can too.
- Don’t Take Rejection Personally
Billionaires like Elon Musk have been rejected hundreds of times in their money-raising careers. The fact is that your investment is never right for everyone.
You must accept that you will get more “no’s” than “yes’s” when raising money. Importantly, don’t let the “no’s” get to you. Remember that you only need one “yes.” So, even after 10 “no’s” or 25 “no’s” or even 50 or 100 “no’s” you need to keep going and persevere.
If you truly believe you have a great company or opportunity, and that it can provide a solid return to your investors/lenders, then never back down.
- Strategically Incorporate Investor Feedback
When investors say “no,” use the opportunity to gain feedback. Specifically, ask them why they didn’t want to invest. Sometimes it has to do with your deal terms. Other times it has to do with concerns about your business or business model.
It is important for you to strategically assess this feedback. Don’t blindly follow the feedback or advice, as it may or may not be correct. But particularly if you hear the same feedback from multiple investors, you must strongly consider what they are saying. If multiple investors, for example, say your management team isn’t strong enough, then it’s generally time to agree with them and immediately start to bolster your team.
Similarly, when billionaires like Elon Musk have trouble raising funding, they modify their project and/or deal terms to better adhere to the needs of investors and/or lenders.
Raising capital is essentially a partnership between you the entrepreneur and the sources of funding you seek. The larger your network, the more potential funders or referrals to funders you have. After that, it’s about creating and selling an opportunity that funders can’t resist. Never give up, but also, don’t be stubborn — realize that feedback from those who say “no” can often be invaluable to your ultimate success!
The Funding Pyramid (TM)
I discovered and trademarked The Funding Pyramid (TM) formula a few years ago.
It’s the precise formula I discovered and have used to help entrepreneurs and business owners like you raise billions of dollars.
I lay out precisely how The Funding Pyramid (TM) works, and how to use it in your business today.
Today’s Question: What famous American, in a bid to show the commercial potential of the soybean, appeared at a convention in 1939 outfitted in clothes made entirely from that very versatile vegetable?
Previous Question: In economics, what type of commodity is a Giffen good which violates a cardinal law?
Answer: Something that people consume more of when its price increases, violating the law of demand.
Giffen goods are named after Scottish economist Sir Robert Giffen, who was attributed as the author of this idea by Alfred Marshall in his book Principles of Economics.
The classic example given by Marshall is of inferior quality staple foods, whose demand is driven by poverty that makes their purchasers unable to afford superior foodstuffs.
As the price of the cheap staple rises, they can no longer afford to supplement their diet with better foods, and must consume more of the staple food.
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