“I do not believe a man can ever leave his business. He ought to think of it by day and dream of it by night.”
~ Henry Ford
Yesterday I told you the first three of six rules for raising money in 2021.
Today I will share the final three rules with you:
- Develop relationships now. Sure, you are most likely to raise funding if you have a quality product/service that has real growth potential. But, even more importantly, you will attract funding if the funding source likes you and your management team. Because investors and lenders bet on people; even a great product or service won’t make it unless it’s backed by a quality management team. So, start building relationships with funding sources now. For example, even if your company may not be ready for venture capital for another 12 months, start meeting with venture capitalists now. These relationships will not only make you much more likely to raise the funding later, but these contacts may be able to introduce you to other funding sources.
- Develop your business plan and keep it up-to-date. Your business and your business plan are always changing. You need to start now by documenting your vision in the plan. The process of developing your plan will force you to think through your business. It will identify new opportunities. And it will give you ideas on how much you might be able to accomplish via bootstrapping and/or smaller funding amounts (numbers 1 and 2 above). Keep adding and updating to your business plan so that when you meet an interested investor, you can quickly and easily get your plan to them. (get help with your business plan here)
- Keep your eyes and ears open and network. You never know who will ultimately fund your business. So the more people you meet the better. The more people you tell about your business the better. The more events you attend the better. The more Advisors you attract the better. And so on. You need to constantly get the word out about your venture to the right people to find the ones who will fund you. And when you meet someone who is not the right fit, don’t forget to ask for referrals. Since they might just know the perfect investor for you.
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 product was first introduced in 1906 as Blibber Blubber?
Previous Question: What was the name of the first major deodorant company in the United States?
Its magazine ad mentioning underarm odor in 1919 led hundreds of offended women to cancel their subscriptions to the “Ladies Home Journal.”
It also became a song title in “The Who Sell Out,” a bittersweet rock album with a commercialized theme.
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