“It is always the start that requires the greatest effort.”
~ James Cash Penney
Yesterday I started giving you fundraising advice gleaned from an FBI hostage negotiator.
Today I want to share 2 final lessons and parallels:
- Keep it Simple
Years ago, during an airplane hijacking, FBI agents were concerned about the fact that the hijacker was wearing a long coat. They guessed that a bomb was being hidden under it, and started thinking of complex solutions. Later the hijacker revealed “It was cold and it is the only coat I own.” (pretty funny, huh)
Likewise, when raising money, keep it simple. Investors can’t invest in what they don’t understand. Lay down the key facts about your venture — why it’s unique and why it will make investors money. You don’t need to get into all the tiny details unless they specifically ask about them.
- Listen to the Other Side’s Needs
In virtually all hostage situations, the ‘bad guys’ have specific needs. Maybe it’s money. Maybe it’s power. Maybe it’s the release of a prisoner. Etc.
Likewise, all investors have needs. Venture capitalists are typically driven by an ROI need, or a need to get a high return on their investment. Angel investors also have other needs like ego and interest in helping an entrepreneur. And strategic investors may invest out of fear that their competitor invests in your company before them. And so on.
So, take the time to understand the needs of your prospective investors, and sell into them.
I trust that these lessons will help you raise money for your business. But realize, they’ll only help you after you take the first steps….mainly getting in touch with potential investors and securing meetings.
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: In the United States, Keogh Plans are full-fledged pension plans for what type of people?
Previous Question: 19th century American businessman Aaron Montgomery Ward is credited with the invention of what type of business that would have made the postal service happy?
Answer: The mail-order business.
Although his idea was generally thought to border on lunacy, and his first inventory was destroyed by the Great Chicago Fire, Ward persevered. In August 1872, with two fellow employees and a total capital of $1600, he formed Montgomery Ward & Company.
He rented a small shipping room on North Clark Street and published the world’s first general merchandise mail-order catalog with 163 products listed.
Ward’s catalog soon was copied by other enterprising merchants, most notably Richard Warren Sears, who mailed his first general catalog in 1896.
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