| You've done everything that your coaches have told | | | | things going on in your life, or you are trying to be |
| you. You've written a convincing business plan. Your | | | | everything to everybody. Perhaps you are |
| financial projections outline a reasonable investment | | | | ultra-creative and have trouble getting down to |
| opportunity for someone. You have piles upon piles | | | | business without going off in tangents. Maybe it is |
| of legal documentation making you compliant with | | | | obvious that you have 'B.A.D.D.', or 'Business |
| securities laws. You have letters of intent, letters of | | | | Attention Deficit Disorder', and can't stay on one task |
| endorsement and some high-powered personal | | | | long enough to see it to fruition. No matter the |
| references. Your PowerPoint presentation is | | | | reason, remember that investors want you working |
| professional. You have your presentation down pat. | | | | full time to grow their investments. That means being |
| You're getting in front of people with money, but no | | | | single-minded in your purpose and in your actions. |
| one is writing checks. | | | | They expect you to put yourself on a reasonable |
| If this sounds like your frustrating situation, you're | | | | salary from their capital, and don't want you spending |
| definitely not alone! Raising capital is not an easy task. | | | | the time they have paid for to work on non-related |
| In the majority of cases, the first investors are by | | | | interests. |
| far the hardest to win. You may have all of the | | | | 8. Something you are doing or have done is out of |
| tangible requirements in place, and they may be in a | | | | sequence. Building or growing a business requires |
| first class presentation. But when you're approaching | | | | adhering to a proven formula. Experienced |
| friends, family and others to be angel investors, it | | | | businesspeople and investors know this. They know |
| often takes more than just numbers and a slick sales | | | | the formula as well. Changing some things in that |
| pitch to win them over. | | | | formula is like frosting a cake before you bake it. |
| Here are some less obvious observations that may | | | | The result can be a mess that is either difficult or |
| be causing you to have a challenge: | | | | impossible to clean up. Be sure that you are doing |
| 1. You're not passionate about your business. People | | | | everything in the right order so that you maximize |
| can tell when you're just going through the motions. | | | | your chances for success. |
| It doesn't matter if the numbers show a huge | | | | 9. You haven't taken enough of the risk out of the |
| financial windfall for potential investors. Many people | | | | venture, or at least shown how you plan to do that. |
| want to see the fire in your eyes before they open | | | | The primary job of an investor is to assess risk. If an |
| their checkbooks. | | | | investor sees that you've put safeguards in place to |
| 2. You're passionate about your business, but it is not | | | | protect their investment, such as protecting your |
| being conveyed strongly enough. This could happen | | | | intellectual property or building a strong executive |
| for several reasons. Maybe you've rehearsed your | | | | team, they will be more inclined to invest. At the |
| pitch so much that it sounds canned. Maybe you are | | | | very least, show how you plan on using their money |
| so anxious to get the money that you come across | | | | to minimize risks and protect their investments as |
| as desperate. It may be as simple as trying so hard | | | | much as possible. |
| to be professional that you hide your excitement | | | | 10. Your timing is off. You may be trying to enter an |
| about what you're doing. Let loose, have fun, and let | | | | industry that is about to undergo radical changes that |
| your excitement become contagious! | | | | will leave you in the dust. You may be approaching |
| 3. Your team is not as strong as it needs to be. Do | | | | real estate investors just as that market is hitting |
| you or someone else on your team have extensive | | | | rock bottom. You may come across as a fo0llower |
| experience in your industry? Do you have a Chief | | | | rather than an innovator because your plan is not |
| Financial Officer that knows how to protect your | | | | revolutionary enough for the investor prospects |
| investor's money? Are your legal documents drawn | | | | you're reaching. Do everything in your power to be |
| up by experts in their respective fields of law? Be | | | | sure that you are approaching the right people at the |
| sure that you have covered all of your bases and | | | | right time. |
| left nothing to chance. | | | | 11. You're relying too much on your own knowledge, |
| 4. Are you presenting your opportunity to the right | | | | skills and talents, and not enough on those of your |
| people? For example, people in your industry are not | | | | team. Your inexperience shows. Be sure to |
| always the best people to approach. This may be | | | | emphasize how teachable you are. Tout your desire |
| because they know the real risk involved in what | | | | and ability to surround yourself with people who are |
| you're planning, or perhaps because they are | | | | wiser, smarter or more experienced than you are. |
| constantly presented with safer, more secure | | | | 12. Your original ideas are either not protected, or not |
| investments. If there is a "mission" driving your | | | | protectable. Many investors won't put large amounts |
| company, such as saving the environment, it might | | | | of money into an invention that is not already |
| be best to look for people who buy into that mission, | | | | patented, though you can often get seed capital to |
| regardless of whatever industry they are in. On the | | | | pay for the patent application. There may be doubt |
| other hand, depending on your industry, people in it | | | | as to whether or not that your idea is unique enough |
| might be your most willing investors. This is especially | | | | to be protected. Be sure to consult with an |
| true if they have contacts or resources that can help | | | | intellectual property attorney and get their opinion |
| you be successful, or if your success will somehow | | | | about protecting your idea in writing. |
| improve their bottom line. | | | | 13. You have not done enough market research. |
| 5. Friends and family are often hard to sell. This might | | | | There may be questions about whether enough |
| be because they know all of the 'dirt' on you from | | | | people will want your product or service, whether |
| years past. They might be familiar with other risks | | | | your price point will be too high to be accepted by |
| you've taken that failed for one reason or another. | | | | consumers, whether your competition has the |
| They may have trouble seeing you as the CEO of a | | | | market locked up etc. Be sure that you have done a |
| multi-million-dollar company. Don't take it personally. It | | | | thorough market study, you have documented |
| is just human nature. Seek out people who will | | | | results, and you have developed a strong and |
| respect you for what you are doing now! | | | | feasible marketing plan. |
| 6. You're not convincing. This may be your lack of | | | | The bottom line is that there are many intangibles |
| confidence in your ability to take the company to | | | | that play vital roles in attracting capital. Be sure to do |
| great heights, or just your nervousness in making the | | | | some practice presentations in front of people who |
| presentation. You not only have to convince | | | | can give you a true assessment of it. Remember |
| prospective investors that the company and the plan | | | | that people have to buy into YOU before they will |
| are solid, but that you are also the right person to | | | | buy into your company. Master the delicate balance |
| lead it. If you are not the right person to fill the CEO | | | | between confident businessperson, passionate |
| position, find someone else who is. Just remember | | | | owner, capable leader and masterful presenter, and |
| that no one is going to have the same kind of | | | | you will greatly increase your odds of attracting |
| ownership mentality that you do. | | | | capital. |
| 7. You're not focused. Maybe you have too many | | | | |