How to raise private money for your business.

Lets start with finding your potential investors and tell them about your new business venture.

Find a place were your potential investors would visit (The Country club, Auction houses, Millionaire clubs, Board of Realtors Associations)

Now that you have picked your place get permission to make your presentation.

In the presentation you want to tell them how every other investment vehicle is bad and how investing in your business venture is the only way to the huge returns they want. Tell them that possibly if they are qualified they could invest with you and your company. (The qualified part gets them chasing you instead of you chasing them)

Once your presentation is over give them a handout with three choices. (have your assistant pass this out)

First Choice
- Pass, I'm sorry but I just not interested in earning money on my money with your company.

Second Choice
- Tell me more, I am very interested but I don't know enough about your company.

Third Choice
- Lets Get Going!, I want to invest in you and your company as soon as possible.

Now once they have filled that out tell them to bring it to your assistant and let them leave. If they checked Choices 2 or 3 tell your assistant to give them your company's investment package giving them more info on you and your company and how you will be contacting them soon about potential investment opportunities in the future.

Your Company Investment package should include
- Potential Investment Opportunities
- The people on your team
- A corporate overview
- A little about you


There you go a short course on how to get private money to fund your business.

 

Is not the easiest thing in the world..you should have super unique offer for these guys

 

Nothing simple is usually easy. You just need to be persistent. There are 8 billion people in this world you can find one willing to give you money.

 

"Once your presentation is over give them a handout with three choices. (have your assistant pass this out)"

What? You want to have your potential investors fill out a questionnaire after you pitch to them? And if they're interested, you hand them another stack of documents? This is complete nonsense. If you can get a meeting with a potential investor, these should be one on one meetings -- and you should answer their questions after making your pitch.

 

Only if it were that easy? There is much more involved. MOST IMPORTANTLY Concept and Team involved into what it is you're offering. Plus board members. Selling your idea to one good investor who is good at picking out winners is much better then 10 who know absolutely nothing about investing.

 

The handout is silly....
Once you open up and Q&A at the end you will know how each stands. Option one will leave, Options two and three will present Qs. After that is over Option three people are apt to approach you, as well as some Option two that are close to becoming Option three.

No matter how much you prepare there will be questions, so being able to think on your feet and be flexible is a must.
This means being able to think of answers that work quickly. There will be some that you will have to tell them that you need to check it out, but very few. Too many "I'll get back to you later" answers and you will have people not wanting to back you as it does not instill confidence that you can handle situations that develop and may miss money making opportunities for the business.

 

In about 1500 companies that startup in a year only 3 - 6 gets investment from wealthy cooperate individuals and most of them have to run there business without funding or close down.

 

Very true, and literally nothing wrong with it to move forward bootstrapping. A fine example is the previous owner of Plenty of Fish, never needed a funder, had no idea what a VC was, however his site generated so much, he never needed it. I've personally never approached a VC until recently started doing some research on them. From form S-Corp or C-Corps to moving forward and raising capital. Rule of thumb is, if your product is good, it'll sell itself. Some are good at being a think tank, and bad at execution, or vice versa, however typical organizations follow a pattern, from founders to advisory team and board members who get a specific share of the organization for their valuable advice.