Using Systems to Grow Your Business


In many franchise businesses you can see the same hamburger or service turn out the same carefully-designed way, regardless of location or the employees doing the work.

The reason why these often big businesses are able to perform an operation consistently and at a massive scale is because they use and follow systems and work processes. This means that they do the right things, in the right way.

Why Small Companies Can't Handle Growth

Unfortunately, most small businesses and entrepreneurs do the opposite. That is, they fail to create systems and business processes that coordinate routine work in a standardized way. Their style of small business management pretty much boils down to just asking their employees to come on time, and then to watch them and hope their products and services are promoted and fulfilled correctly.

Well, what does "correctly" even mean?

This is a mistake that happens all the time; most entrepreneurs think they don't need to set systems and work processes, or that it has to be done all at once in some monumental undertaking to make an employee handbook as thick as McDonald's.

Because the average small business operates with less than a few dozen employees, their managers generally believe (incorrectly) that since the business only has few people, creating and applying business systems would be a waste of time and money.

It's like saying that you don't need a system to organize your CD collection because you only have a few CDs at present. This might work in the beginning, but the problem comes when it's time for the business to grow. Then you may have 10 times the work going on, and things get chaotic. Quality goes down, morale goes's a confusing mess!

Same goes for when your business has to change employees (even satisfied employees change jobs, move, or otherwise stop working for you). With no systems in place, the new employee will have a tough time doing the task correctly because "correctly" has not been defined for them or demonstrated.

The Process Determines the Results

Another reason why small businesses often lack proper processes is because their management only cares about results, rather than the processes that created them. They don't care how their employees get the job done, as long as the finished burger meets the standards.

Of course we should all be results-oriented. But sometimes having your team do something a specific way will lead to better results, higher quality, faster work, less waste, etc. In these cases, you definitely want to spell out the process for them.

When buying hamburgers from a franchise, for example, people expect it to be perfect or to at least be identical to the previous ones that the burger joint sold. If you didn't have a system or a process for making burgers (how long to freeze, how long to cook, what the toppings are and in what order to stack them, etc.) then keeping the quality up to your standards would be tough. One employee would do it one way; another employee would do it another. You would not get consistent results.

How a Systems-Run Business Looks

We've covered the disadvantages of not having small business management systems and processes, but now let's delve into what may actually happen when you do have them.

When talking about the advantages, we just have to reverse the scenarios we talked about earlier.

Imagine a business with only a handful of employees. But also imagine them following a system and doing what they were supposed to do, and doing it the right way. Costs would go down. Product and service quality would go up. Profits would soar. And your business would be simple to run. As a result, you would spend your time growing vs. simply operating your business. And tons of other businesses would want to purchase yours for a big premium.

Now imagine one employee quitting for whatever reason. The new employee wouldn't have a problem taking the old employee's place; because there would be a process to follow that everyone knows. It would have become the way you do it here.

Now that you know that systems and business processes are important, how do actually create them?

Make A Few Simple Systems Of Your Own

To create systems, it is best that you start looking at the business processes that take place in your business. Make a quick list of everything your business does, from accounting to sales.

Once you have a list, take one at a time (in order of impact to your business; the most potential impact first) and start writing down a simple checklist of actions that make it happen. Start with the beginning of the process (e.g., customer places order), then imagine the ideal outcome (customer receives perfect result), and then write down each step that should occur in between. Then write in who is responsible to do what, and estimate the costs of each step in hours and dollars. You should then have in one hand a brief write-up of how to perform the system and what it will take to do so.

Once you've designed your system, test it out once or twice before officially implementing it. Make sure your systems and processes do what they are supposed to do and nothing short of that. Perform the work yourself or watch someone closely, and pay attention to every step.

Whether it's from not knowing about systems or not making the time for it, most small business managers do not make and improve their business processes over time. But that's manager's main job -- to keep the right people running the right systems, so the company's desired results can be achieved.

If the system doesn't work...change it. If an employee will not or cannot work the system...change employees. Because once you systematize your business, it will run smoothly and it will run itself. You can then focus your efforts on growing the business, and reap the rewards of a fully systematized company.

If you want to learn more about systematizing your business, read below.


The Secret Formula to
Building a $10 Million Company

If you want to build a $10 million+ company, you must focus on building Value. And to build Value, you need to follow a specific formula.

In this video, I layout the precise formula for you.

As you watch the video, you’ll see the important schematic below:

Don’t be overwhelmed by its complexity, by the time you see it, it’ll make perfect sense. And you’ll be able to follow it to dramatically grow your business.

Click here to watch the video now



The Luckiest People On Earth


The Luckiest People On Earth

This two-and-a-half-minute video has had nearly 8 million views on YouTube so far.

My sister had to stop watching it half way; it made her anxious.

I looked at it VERY differently -- from the perspective of an entrepreneur.

Here it is:

As an entrepreneur, watching this video made me think of the great quote from Samuel Goldwyn: "The harder I work, the luckier I get."

You see, that's what frustrates me about the video. I'm not a big fan of luck that's not predicated by hard work.

Because it sends the wrong message. It sends the message that you can attain success via luck. Which is sometimes, but rarely, true.

To be a successful entrepreneur, you need to create your own luck like Goldwyn did (Goldwyn was born in Warsaw, Poland without a penny to his name). 

You need to work hard and try lots of things. Importantly, you must realize that MOST of the things you try will fail. But with persistence, success will come. Funny enough, a lot of people consider this "luck." 

Was Edison "lucky" when he created the light bulb? Sure he was. In each of his experiments, I'm sure he hoped that he would get "lucky" and invent one which worked. If his first try would have worked, it clearly would have been at least a little lucky. But what about his second, his tenth, or his hundredth tries? Clearly, when he experimented over 1,000 times, it was hard work and not luck that prevailed.

I think that a simple timeline is one of an entrepreneur's greatest tools, and one that helps ensure that you will get "lucky" from good planning and hard work.

This timeline should start with where your business is right now. And it should end with where you want your business to be in 5 years. In creating your timeline, you should provide much more detail for the next 12 months, as you have more control over this time period. What do you hope to accomplish? What dates should you set to accomplish each goal? And so on.

By going through this exercise, you start to realize the numerous steps you'll need to take to achieve your goals. You'll start to better understand the things that might go wrong, or that might be more challenging than you initially thought. And you will have a roadmap to follow. But importantly, remember that many of your attempts will fail or take longer than planned. So build this into your timeline.

And when time passes and you attain your goals at the end of the timeline, many people will call you lucky. But you and I will know that luck had nothing to do with it!

(To improve your "luck" dramatically, have a written plan. See our featured resource below to easily make this a reality for you.)


Do You Have A “Killer” Plan?

This simple tool gets your whole team pulling in the same direction, so you overcome your biggest business challenges.

The best part? You can get it done in 1 day.

Click here to create a "killer" plan today.



Entrepreneurs Don't Plan To Fail, They Fail To Plan


Entrepreneurs Don't Plan To Fail They Fail To Plan

I periodically read research reports about business failures. I always find them interesting, although often they are depressing.

Such as what I recently read. Which was research from Bradley University in Peoria, IL.  This research found that 70% to 80% of new businesses fail within their first year.

And while this was frustrating enough to read, the research further stated that half of those companies which do survive the first year will fail within the next four years.

Now, let's turn to the cause of this failure. According to Dun & Bradstreet, the number one cause of this failure is lack of business planning.

What this essentially means is this: entrepreneurs and business owners don't plan to fail; rather, they fail to plan (which causes them to fail).

In my view, there are two types of business plans. The first is the business plan you must create when you start your company. The purpose of this plan is to ensure you have fully thought through your venture.

Among other things, this plan includes significant market research. It assesses your market size to ensure the opportunity is big enough. It analyzes customer segments to confirm that customer needs match your company's proposed product and/or service offerings. And it analyzes the competition to determine how your company will position itself and how you will most effectively compete.

From a strategic standpoint, the business plan must document your marketing plan (how you will secure customers), your human resources plan (who you will hire) and your operations plan (what key milestones you will accomplish and when).

When you're done, your business plan will confirm your market opportunity and give you a roadmap to follow. It will also be required should you wish to gain funding from investors and lenders.

Now, once your business is up-and-running, you still need a business plan in order to succeed. I refer to this type of business plan as a "strategic plan." I term it as such because this type of plan requires much less research (since you already know who your customers are, the market fundamentals, and lots of information about your competitors). Rather, the focus of this plan is strategy.

Specifically, this plan needs to identify precisely:

1. Where you want your company to be in five years

2. What you need to accomplish within the next year to progress you to that point, and

3. What your strategy is to complete your key milestones in the next 12 months

In determining the optimal strategies, you need to consider your company's strengths, and opportunities that can best leverage them. If you don't take time to do this, you become too tactical. That is, you continue to use the same tactics that have gotten you to the point you are at. And oftentimes, the strategy and tactics that got you where you are today are NOT the strategy and tactics that will get you to the next level.

So, spend time figuring out the best strategies to follow. The good news is that you've already proven you can execute on strategies (which is what got you to where you are now).

After you figure out the big picture opportunities to go after (which often fall into the categories of further penetrating your existing market, going after a new market, or creating new products/services for existing and/or new markets), you need to revisit the three core strategies you developed in your initial business plan.

To start, you need to modify your marketing plan. Importantly, your marketing plan should always be adding new marketing channels (e.g., direct mail, print, radio, search engine optimization, etc.) as the more channels you have, the more customers you will get and the less risk you have of one channel losing effectiveness (think about businesses who used to get all their customers from the yellow pages).

Next, consider your human resources strategy. What new people will you need to hire to accomplish your key goals in the coming years? And finally, you need to develop your operations strategy. Figure out what key tasks and milestones you need to accomplish over the next year and break them down into smaller projects that you and your team must accomplish. And then create a master schedule showing who, how and when these projects will be completed (I like using a Gantt chart to do this).

To achieve maximum success in your business, create a business plan when you start your company, and annually create a strategic plan to grow your company.

The planning process will force you to focus on accomplishing the right things in your business. Since even if you execute flawlessly, if you are executing on the wrong strategies and opportunities, success will elude you.


Do You Have A “Killer” Plan?

This simple tool gets your whole team pulling in the same direction, so you overcome your biggest business challenges.

The best part? You can get it done in 1 day.

Click here to create a "killer" plan today.



7 Ways to Terrorize Your Competition


7 Ways to Terrorize Your Competition

One of my favorite movie lines, which I think about often, comes from the 1993 movie Rudy. In his pre-game inspirational talk in the film, Notre Dame football coach Dan Devine says, "No one, and I mean no one, comes into our house and pushes us around."

Yet, this happens all the time in our businesses.

We let competitors push us around. We let them steal our customers. We let them push our prices and margins down. And we let them dictate how we run our businesses.
So how do we stop this? How do we dictate how competitors need to act? And to go even further, how can we terrorize our competition so they don't even want to compete with us?

Here are 7 of my favorite ways:

1. Know More Than Them

By investing in the latest education, you will always have an edge on your competitors (assuming they don't also do this). Learning the best new techniques in sales, marketing, operations, finance, HR, etc. will allow you to outperform your competition on multiple fronts.

2. Create a Vision and Stick to It

Spend the time to create a solid vision of the company you want to create. For example, my vision at Growthink is to become the number one place where entrepreneurs go for assistance starting and growing their companies.

When you have a solid vision, you will not make knee-jerk reactions to your competitors' actions. Rather they will react to you. Also, while competitors' actions may cause you to shift your strategies, if you have a set vision, you will spend less time strategizing and more time executing.

3. Really Listen to Your Customers

One of my favorite quotes is from marketing expert Jay Abraham which goes, "Your customers are geniuses; they know exactly what they want."

By spending more time listening to the needs of your customers, you will create better products and services than your competitors.

4. Focus on Customer Retention

Focus more on retaining your customers than getting new ones. Studies have shown that it costs up to 7 times as much to acquire a new customer than it does to retain an existing customer. The profit is in retaining customers and selling them more things (that they need) over time.

Let your competitors fail to make profits, burn out, and go out of business by exclusively focusing on acquiring new customers.

5. Hire Right

As you grow your business, the less "doing" (e.g., building the product or providing the service to the customer) you will do and the more "managing" you will do. So your success will be put into the hands of those you hire. Spend the time to hire right and to train them well. And if you ever have the concern, "what happens if I train them and they leave?" then think the opposite, "What happens if you don't train them and they stay."

6. Create Systems

I heard the following acronym definition of "system" at a conference last week (yes, I am practicing what I preach and constantly invest in my own education).

The definition is:

Energy &

Yes, systems may take time to develop. But once you've developed them, you will save time, energy and money on an ongoing basis.

7. Do Something Your Competition Would Have a Hard Time Duplicating

I know of one business that has an extremely rigorous client development process. Among other things, it consists of 6 months of pre-written emails sent to prospects twice per week, and weekly letters and packages sent to them in the mail. The process works extremely well, and not only would it take competitors 6 months to learn their systems, but creating a similar program would be a significant undertaking.

Other companies create a host of niche products that make it harder for a new competitor to enter their market. For example, if someone wanted to compete against Growthink with a capital raising product, it would be hard for them as we offer a product for raising angel capital, a product for raising venture capital, a product to get loans, a product to get grants, etc.

So, think about how you could create a company that your competitors can't replicate. In doing so, your competitors will be at a huge disadvantage. Also in doing so, you will become a great acquisition candidate for larger companies who realize it's easier to buy what you've developed than try to recreate it themselves.

8. (Bonus) Document Your Strategy in a Written Plan

There is countless research showing that those with written plans achieve significantly more success than those who don't.

See the featured resource below for help in quickly and easily creating a killer plan.


Do You Have A “Killer” Plan?

This simple tool gets your whole team pulling in the same direction, so you overcome your biggest business challenges.

The best part? You can get it done in 1 day.

Click here to create a "killer" plan today.



Boost Accountability & Boost Results


Boost Accountability & Boost Results

Accountability has been a buzzword in the business world for some time. Unfortunately, most of us have a negative association with the word. We often use it as if it means blame and punishment, as in "Who is accountable for this mistake?" So we unconsciously try to avoid it.

The truth is that accountability is unavoidable. In the workplace, everyone is accountable to someone. As an entrepreneur or business owner, you are accountable to your business' success, and to your customers, investors, and employees.

Now, what if being accountable was empowering for you and your employees? Research indicates that rather than a negative force, holding people accountable for their actions and results has very positive effects on morale and performance.

For your employees, an environment of accountability produces vigilant problem-solving, better decision-making, and greater job satisfaction. With an environment of accountability, employees can develop their skills and be their best. It means a higher likelihood of reaching goals, which we all want.

For yourself, accountability is also key. Most of us worked for someone else in the past to whom we were accountable. But when we struck out on our own, and became the boss, we lost that. While many entrepreneurs and business owners are able to be accountable to themselves, it's often challenging. And for tasks that take a lot of discipline (e.g., calling 25 prospective investors every day), sometimes more accountability is needed to make sure they get done.

Here are some ways to boost accountability in your company:

  • Create accountability standards for yourself. What happens if you don't complete a task? Do you force yourself to stay late to do it? Or are there no immediate consequences? Figure out how to reward yourself for being fully accountable, and likewise give yourself some sort of penalty when you are not.

  • Ambiguity is the enemy of accountability; so your first step as the manager of your employees is to make sure they have very clearly defined roles, job descriptions, and duties.

  • Accountability is an attitude, so look at yourself as the role model. Are you being accountable to your employees, clients, and yourself? You as the leader will want to model this attitude, so focus on being accountable in addition to holding others accountable.

  • Do you have written expectations of your employees? Starting at the time of hire, if possible, create written expectations and standards of performance for each employee. You cannot expect something from someone who has not had the opportunity to buy into the expectation.

  • Do your employees have a working plan - a project timeline, an economic model etc? This will help keep them accountable.

  • Do your employees have training? You cannot hold someone accountable to something they are not been trained to do!

  • Have you created a learning based environment? Is it okay to make a mistake or say, "I don't know?" Creating a safe environment for mistakes encourages accountability. Employees will be less afraid to share mistakes and other negative feedback with you that can be used to correct the root of the problem. The opposite of this would be a culture of "yes men" (which you clearly don't want).

  • Are there real consequences for lack of accountability in your organization? Consequences work best when spelled out before actually needed, in expectations for example.

  • Do your employees have the talent and ability needed for the task? Some people will not have the ability to do the job you are asking them to do regardless of having a well-defined role, a great manager and excellent training. Try to find this out when hiring, but keep an eye on employees throughout their working time with you to confirm it.

Without accountability, no one knows the goal or who is supposed to do what. There's no way of knowing what's going on, so things don't get done (surprise, surprise). Without the right accountability, you will create an environment of low productivity and high turnover.

Conversely, setting up the right accountability structures, as discussed above, will create a culture in which goals are constantly attained. So make a plan today to implement the tips above. After all, if you don't emphasize and demonstrate the important of reaching the goals you set, who will?


My #1 Tip for Super Fast Business Growth

What’s my best secret for accelerating your business growth?

It’s simple, actually: Get other people to build your business for you.

In other words, Build Your Dream Team <-- Click Here

Most entrepreneurs are making a big mistake: they’re trying to do everything themselves.

But that’s not a recipe for business success -- it’s a recipe for burnout, frustration and failure.

To build a truly successful business, you need a “Dream Team” to help you turn your vision into reality.

And I created this training to show you how to do it right.



How Reverse Logic Doubled Profits


How Reverse Logic Doubled Profits

I find it amazing how many entrepreneurs and business owners get burned by thinking about things incorrectly.
Here’s an example from a recent conversation I had with an entrepreneur who sells professional services. His sales were strong, but his profits were weak. In trying to figure out a solution, he started by suggesting he layoff part of his staff. If he cut his staff, costs would go down and profits would go up.
However, he then realized that if he had less staff members, he couldn’t close as many sales nor complete as many projects. So, sales would go down about the same as costs, and profits would remain flat.
The solution I gave him was to cut costs by reducing his staff (either through layoffs or natural attrition) and to boost employee productivity. Because if he were able to serve the same number of clients with a smaller staff, then profits would rise. In fact, if the staff were pared down enough, he could even afford to pay each staff member more than they currently make.

There are several great example of this “reverse logic” of paying employees more to increase profits.
One example is The Container Store. The Container Store has just one employee for every three their competitors have. But, they pay their employees double the industry average and spend 160 hours training them.
What is the result of this strategy? The Container Store employees are better trained and happier, and thus provide superior service. All this at a 33% lower cost than competitors.

Interestingly, when The Container Store opened in New York City, it had 100 times more applications than available positions. With numbers like that, they can hire the best of the best each time.

Similarly, Harry Seifert, CEO of Winter Garden Salads gives employees bonuses just before Memorial Day, when demand for its products peak. The bonuses boost morale and cause the company's productivity to jump 50% during the busy period.

Paying employees more to improve performance and boost company-wide profits is a historically proven tactic. In fact, back in 1913, Henry Ford doubled employee wages from $2.50 to $5.00 per day. The move boosted employee morale and productivity and caused thousands of potential new workers to move to Detroit.

Your employees can and should be a source of your competitive advantage. Recruit them slowly and wisely. Train them well. Give them a voice in your company and respect them. And pay them well. When you do this, you’ll have employees that perform at three times the level of your competition. And even if you pay them double the industry average, you’ll still have huge profits and outperform your competitors.


My #1 Tip for Super Fast Business Growth

What’s my best secret for accelerating your business growth?

It’s simple, actually: Get other people to build your business for you.

In other words, Build Your Dream Team <-- Click Here

Most entrepreneurs are making a big mistake: they’re trying to do everything themselves.

But that’s not a recipe for business success -- it’s a recipe for burnout, frustration and failure.

To build a truly successful business, you need a “Dream Team” to help you turn your vision into reality.

And I created this training to show you how to do it right.



Are You a Stealth Manager?


Are You a Stealth Manager

My first job, 25 years ago, was at a market research firm.

About six months into the job, I had an idea for a new product.

My idea -- rather than giving clients access to a large database of information, I took the database and created pre-defined reports that allowed them to access key pieces of data quickly and easily.

Instead of asking approval to launch the new product, I used my spare time to actually create it. I then showed it to the VP of my division.

And the result?

I got yelled at.

Seriously, the VP was angry at me. He questioned my immediate boss as to what I was doing and why I had invested time in creating something new.

Obviously this was not a very entrepreneurial company.

But what I found most interesting about the event was how much face time I got with the VP.

You see, that VP was what I consider to be a "stealth manager." That is, he pretty much sat in his office, door closed, day after day after day.

So he really had no idea what everyone was doing. So he didn't know that I created the new product after hours, and that between 9 and 5, I was accomplishing all the regular tasks assigned to me.

In fact, he didn't know much about anything that was going on.

And the result -- the employees were not inspired. We were not motivated. We lacked a clear vision of what the organization was trying to achieve.

And all this resulted in lackluster performance.

We didn't go out of business. But we certainly weren't growing like gangbusters like we should have been.

Think about your days. Are you a stealth manager? Are there others at your organization who are stealth managers?

Stealth management doesn't work. Effective leaders and managers walk around and speak to their employees. They listen to them. They inspire them. Because effective leaders know that it's the employees who make or break their companies. They (the leaders) are the conductors of the orchestra -- without the players (the employees), there is no music.

Here are 5 things you can do TODAY to quickly break out of the "stealth manager" mode (and make your team more productive).

1. Walk around the office

Simply walk around to see what everyone is up to. Don't make it seem like you're Big Brother checking up on them. But rather, be very casual about it (the next points will give you some talking points to help with this).

2. Ask people what they are working on

Ask people what they are working on, and then really listen to their answers. Ask them why they are completing a task a certain way, and as appropriate, suggest another way they may accomplish it. Not only will they appreciate this mentorship, but you could improve their performance.

3. Tell someone/several people they're doing a good job

Tell at least one person that they're doing a good job. Let them know you found real value in something they accomplished recently.

4. Buy cookies

I don't know many people who don't like cookies. Come back from lunch with cookies, and either hand them out or put them in a main area. In either case, let everyone know that you bought them "just because." Even those on a diet who refrain from eating them will appreciate the gesture.

5. Picture each of your team members as they looked when they were toddlers

This will force you to smile when you see them. And that smile alone will brighten their day.

Great companies are not built by one entrepreneur. They are built by entrepreneurs who inspire their employees to accomplish great things. Make sure you keep this top-of-mind, since if your employees don't succeed, neither can you.


My #1 Tip for Super Fast Business Growth

What’s my best secret for accelerating your business growth?

It’s simple, actually: Get other people to build your business for you.

In other words, Build Your Dream Team <-- Click Here

Most entrepreneurs are making a big mistake: they’re trying to do everything themselves.

But that’s not a recipe for business success -- it’s a recipe for burnout, frustration and failure.

To build a truly successful business, you need a “Dream Team” to help you turn your vision into reality.

And I created this training to show you how to do it right.



How to Find a Venture Capitalist: The 5 Best Places


How to Find a Venture Capitalists The 5 Best Places

Do you have a great business or business idea?

That, with an infusion of millions of dollars could become a huge success story?

If so, you should be talking with venture capitalists or VCs. As you probably know, VCs are the folks with the big checkbooks. Who have funded numerous successful companies like Google, Yahoo, Ebay, Twitter, Federal Express, and more.

So, how can you meet a venture capitalist?

Well, the best way to meet a VC is to be introduced to them. Perhaps you have a consultant that knows a VC. Or a lawyer that knows a VC. Or a Board Member that knows one. Etc.

But, even if you are extremely well connected, it's virtually impossible to have a connection to every VC you want to meet.

So, below I've included the six best places to meet VCs.

1. Meet Them on Their Blog

Most of the top venture capitalists maintain their own blogs. For example, VC Brad Feld's blog is located at, while VC Fred Wilson's blog is located at

Once you find the blog of the VC you would like to fund your company, read their blog posts. And then comment on them. Your comments should add valuable insights to the posts; showing that you're smart and someone the VC would want to know. After a few comments, the VC will start to recognize you. And when they respond to one of your comments directly, you'll have the chance to respond asking them if they'd like to meet in person.

2. Meet Them on Twitter

Many VCs are active on Twitter.  So find them on Twitter and then follow them. See what they're posting about and use that to start a dialogue with them (via direct messaging, replying to a tweet, etc.).

3. Meet Them on LinkedIn

LinkedIn makes it very easy to find and get connected with VCs. As you grow your LinkedIn network, you'll gain more and more connections to VCs.

Once the targeted VC is in your network, send them a LinkedIn message.

4. Meet them at Industry Events

All industries have events. And at these events venture capitalists who are interested in funding companies in that sector will come.

For example, next month I will be attending the AdTech conference in NYC to learn about the newest online advertising technologies. One of the speakers at the event will be Tim Chang, the Managing Director of Mayfield Fund.  In addition to Tim, I'm sure lots of other venture capitalists will be there.

5. Meet them at Local Events

Every major city has local technology and other events that attract venture capitalists.

One of the best ways to find out about these events is at

I just searched on "venture capital" within New York City and found tons of local events that VCs will be at. Most smaller cities have less, but still plenty of events for you to attend to meet the right VCs for your business.

6. Meet them via Email

The final way to meet venture capitalists is via email.

Many VCs still list their email addresses on their websites. If not, subscribe to a database that offers them, or simply call the VC firm and ask for the email address.

VCs get tons of emails, so just send them a teaser email with no attachments (teaser emails give just a few exciting points about your company to get the VC interested).

So, there you have it. Even if you don't have any connections to VCs, you now have six places you can go to find them and contact them. And once you do, you could be on your way to a multi-million dollar funding check which allows you to build a phenomenally successful business.


How to Raise $1 Million or More

If you need millions of dollars in funding to build your business, you should raise venture capital.

Click here to discover the proven formula for raising venture capital funding.

When you click, you'll learn why the "old fashioned" way of raising venture capital is dead.

You'll learn why mastering the "T-Factor" is key to raising venture capital.

And you'll learn much more when you click here.



The One Thing Every Venture Capitalist Wants


The One Thing Every Venture Capitalist Wants

A venture capital firm is a financial institution that focuses on providing capital, in the form of equity, to companies who offer them the prospects of significant growth. 

The partners and associates at venture capital firms are known as venture capitalists. The term "VC" or "VCs" applies to both venture capital firms and venture capitalists. 

Unlike angel investors, who invest their own money, VCs are professional institutions that invest other people's money. VC firms raise capital for their own funds from sources which primarily include pension funds, financial and insurance companies, endowments and foundations, individuals and families, and corporations.

The VCs are then charged with providing a solid return on investment on this money. This is the one thing that every VC wants. By providing a solid ROI to their investors, VCs earn bonuses and raise more funds so they can stay in business.

VCs earn returns for their investors by finding high growth companies, making investments in them at favorable terms, guiding and nurturing them, and enacting a liquidity event (e.g., selling the company or having it complete an initial public offering).

Because they are utilizing other people's money, and are judged and compensated by the performance of their investments, venture capitalists are extremely rigorous in their investment decision-making process.

Importantly, VCs tend to only invest in companies with significant market potential of $50 million, $100 million or more. This is because even with all their relevant experience, the average venture capital firm will lose money on half the companies they invest in and only break even on a third.

Where VCs make their money is on the approximately 20% of companies they invest in that see explosive growth and provide remarkable returns of 10 times to 100 times or more on their investment.

Industry insiders sometimes refer to the 2:6:2 rule. This rule is that an average portfolio of ten VC investments will include two losses (e.g., companies go bankrupt), six moderately performing companies (may break-even on the investment or lose a little) and two very successful returns.

In fact, an analysis by Bygrave and Timmons of VC funding found that just 6.8% of investments returned ten times or more on the invested capital (these "home runs" are what give VCs high overall returns). Conversely over 60% of investments lost money or failed to exceed the amount of money earned if the capital had been put in an interest-bearing bank account.

The result of this analysis is that typically a venture capitalist will want to see the ability to get 10X their money back or more from investing in your company (they are seeking "home run" investments which compensate for the 60% of their investments that don't pan out) . As such, for every $1 million you are seeking from VCs, you must show them a realistic scenario where you can turn it into $10 million.

So, importantly, when approaching venture capitalists, remember 1) their primary goal is to make significant money from investing in you; and 2) you need to show them how they can earn a 10X return.

Now, if your company can potentially give VCs a 10X return, then seeking venture capital might be right for you. However, raising it is virtually impossible if you don't know what you're doing and haven't done it before. So follow this plan:

1. Develop a list of VC firms.

Start by creating a list of venture capital firms.

2. Narrow your list.

Each venture capital firm invests based on particular characteristics (e.g., some only invest in software firms), so you need to make sure your list only includes VCs that are interested in your type of venture.

3. Make sure the VC is active.

Many VC firms that have websites aren't active. That is, they aren't making new investments. You don't want to waste your time contacting and talking with these firms.

4. Find the appropriate person to contact.

This is critical. Venture capital firms are comprised of individual partners and associates. If you contact the wrong one, you'll be dead in the water.

5. Send the VC partner or associate a "teaser" email.

You don't want to send the VC a full business plan or executive summary initially. Rather, you need to send them a "teaser" email to see if they are interested. You don't want to "over shop" your deal.

Once the VC "bites" on your teaser email, the next step is generally to send them your business plan. Following that you'll do an in-person presentation(s), receive and negotiate a term sheet, and then sign a formal agreement and receive your funding check.

The process is a lot of work, but once you receive their multi-million check with which you can dramatically grow your company, you'll agree it's worth the effort.


How to Raise $1 Million or More

If you need millions of dollars in funding to build your business, you should raise venture capital.

Click here to discover the proven formula for raising venture capital funding.

When you click, you'll learn why the "old fashioned" way of raising venture capital is dead.

You'll learn why mastering the "T-Factor" is key to raising venture capital.

And you'll learn much more when you click here.



The Big Secret to Raising Venture Capital


The Big Secret to Raising Venture Capital

Years ago I served on a funding panel with Tom Clancy. At the time, Tom was a partner at Enterprise Partners Venture Capital in San Diego.

At the time, many venture capital firms were licking their wounds. They had funded a ton of companies during the tech bubble phase, and most of them had failed.
This led Clancy to make an important decision. He said that going forward, Enterprise Partners would wait at least six months before funding any new company they met.

The rationale was solid. During the six months, he would see what the entrepreneur was able to accomplish. If the entrepreneur accomplished the milestones set forth in their business plan, than they were deemed worthy and would receive funding. If not, they would not.

So what is the entrepreneur to do during the six months in order to get the investor to write them a check?

Obviously they need to achieve milestones... But what else?

Before I give you an answer, I want you to know how crucially important this is, not only in raising capital, but in securing key partnership and gaining key customers.

Let me give you an example of an entrepreneur who successfully used this technique in order to get a key partner. This entrepreneur’s name was Chet Holmes. And one of the key reasons that Mr. Holmes achieved success was through his partnership with marketing guru Jay Abraham.

How did Holmes get the partnership with Abraham? Like many people, he tried to reach him by phone, fax and mail. But Holmes did it every other week...


Then, he finally got a call from Abraham's business manager for a lunch appointment, flew to Los Angeles for lunch, and established a very profitable partnership.

So, what's the answer to the question of how to woo investors, customers, partners, advisors, key hires, and more over six months?

Effective and persistent communications. In other words...


You must consistently, over a period of time, hammer home your message to investors, key customers and others.

What exactly does this mean? For investors, once you meet them, you should follow-up with them at least twice per month to update them on your progress. For prospective customers, you should contact them on an ongoing basis to continually give them value and convince them of the benefits of working with you. And of course, don't forget to follow-up with your existing customers.

And a key here is that this follow-up should NEVER END unless or until the costs of the follow-up clearly outweigh the benefits.

Remember that people invest in, buy from, and partner with other people. So, who would you rather work with? Someone who has been contacting you for two years with quality messages regarding why you should partner with them, buy their product or invest in them? Or someone who you just met yesterday and tells you how great they are?

The answer is clear.

Don't stop at the first contact. Choose the appropriate frequency (i.e., you don't want to be perceived as too obnoxious or pushy to potential investors), craft quality messages, achieve your milestones, and convince investors and others to work with you over time.


How to Raise $1 Million or More

If you need millions of dollars in funding to build your business, you should raise venture capital.

Click here to discover the proven formula for raising venture capital funding.

When you click, you'll learn why the "old fashioned" way of raising venture capital is dead.

You'll learn why mastering the "T-Factor" is key to raising venture capital.

And you'll learn much more when you click here.


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