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Most people who buy a business, and nearly all who buy more than 1 company, will need to raise capital.
There is a lot of advice available about how to effectively raise funds, how to set terms, etc., but the best capital raisers that I know do a few things really well:
There is a lot of advice available about how to effectively raise funds, how to set terms, etc., but the best capital raisers that I know do a few things really well:
- Practice their pitch outside of the spotlight (and ideally with trusted contacts who will provide real feedback) to make it tight
- Create a contact strategy, starting with the easiest people to approach (most likely to say yes or most forgiving in case you mess up)
- Create a contact strategy, starting with the easiest people to approach (most likely to say yes or most forgiving in case you mess up)
- Always ask for referrals to other potential investors and seek as many contact points as possible for high-value, high-potential investors. Keep expanding the network
Once the fundraising is in motion:
- They provide regular updates to everyone who has been contacted
Once the fundraising is in motion:
- They provide regular updates to everyone who has been contacted
- Initially, they create a sense of MOMENTUM. "I& #39;m now 30% subscribed and have 10 more meetings scheduled in the next week...". Also, "Person x, whom you may know, has committed" (If they say you can use their name)
