IDEAS FOR RAISING BUSINESS CAPITAL

It's true but nobody really cares about your deal ! Startling but true. Have you ever watched the Dragon's Den. If so you then you know that although the the group are interested in whether it's a viable project from a monetary point of view, contestants often blow it with their arrogance and attitude and the panel has no hesitation in telling them so.

You are wasting your time if you put together a long winded plan fluffed out to make it look good..... Keep your plan simple and easy to follow with all the essential information... and then the rest of the work is selling yourself as a credible and sincere person who can be trusted.

People Invest in you because they like you.... you as a person are more important to an investor than the project. There are literally billions of dollars out there waiting to be invested but in these dark economic times and when there have been some notorious scams out there investors are naturally suspicious. They are not going to send any money your way to finance your business unless they like you and have confidence that you can do what you say you are going to do.

Having said that here are some ideas that should help you to raise Capital.

1. Dressing the Part: As the saying goes you never get a chance to make a first impression.... As an entrepreneur and employer for over 35 years the first thing I do when hiring is to talk to people on the phone. The way they talk to me will determine whether I take it any farther. Then the thing next is how they dress when they turn up for the interview. It's amazing that people with amazing resumes will turn up for interviews like they just got out of bed.
Investors are going to notice how you dress and will determine then and there whether they will hear you out or eliminate you on the spot. Dress the part, wear a suit, polish your shoes, get a haircut or have your hair done. Don't wear t-shirts, jeans or runners. Remember in general investors are looking for reasons not to loan to you.

Have a presentation folder for your business plan, and if you know you are meeting with more than one person, then have additional copies, one for each person. As you are talking they can each then go over relevant parts in your plan. Have proper business cards printed.... it's a reasonable cost and it's easy to tell if you have printed them off yourself.

In other words look the part, act the part and have professional looking materials and you will be off to a good start.

2. Financials: It's important that you are as accurate as can be in your financial presentations. Investors know that you have to make projections and know that these are not always accurate, but you need to be able to back up your figures. You need to be able to tell them why and how your projections make good sense......and you need to be able to answer questions on unexpected expenses..... and know in advance how to answer the questions re any pitfalls and problems that might come up that would affect your expenses and revenues.

Be conservative but thorough with what you will need, including startup costs, and any research costs that may be required. Don't forget marketing costs and details on how you plan to generate the revenues.
Investors are looking for all the pitfalls and any misrepresentations and will drop you like a hot brick if you try to pull the wool over their eyes. Show them that you know your best and worst case scenarios, and if you present well and come across as honest and sincere they will look at your project more favorably.