Forums: Discussions for entrepreneurs and small business.

OK  Robert all go change the detail but it involve a good question about having more information on the subject .

Have a good days.

Ok Robert I just change couple thing in and if you find other good advise  we are here to learn how thank you

have a good days

Hi Cole,

Investors, whether VC or Angel, invest in people not ideas or plans. My suggestion is for you to start networking around your community so that you can meet those who have money to invest, or those who are willing (not a broker) to make an introduction to those who have money. Go to your banker and ask them for references. See if there is an investment group who meets to talk about the stock market and go talk to them. Regarding the broadcasting of your Business Plan - not a good idea. If you want to whet appetites, send along a two to three page executive summary that does not disclose your secrets.

I agree in concept with Mabeline because our experience (with clients) shows that a big majority of investments in early stage companies comes from those directly in the entrepreneurs "network" or within "one" degree of separation.

While, it`s nice to talk to a banker - unless you have a contact fairly high up in the structure, most don`t have any real idea or experience with acquiring equity capital.

I would also add that just because someone has a large net worth - does not make them a potential investor for you!

Acquiring capital for a "fledging" enterprise - while not rocket science - is a skill set.

Robert Johnson 

 

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Have a good days Robert

I am learning a lot about detail that dont look important but they are good info.

frome Stephane

Stephanie,

 

You’ve asked a great question – why do people want to be paid in advance rather than get a larger amount from the results. There are many possible reasons. Here are a few:

 

1. Quite frankly, there are unsavory folks out there who prey on inventors and entrepreneurs.
2. There are laws and regulations covering “commissions” on the sale of securities. Any entity that receives them must be a licensed securities broker-dealer or an investment bank. While some states tacitly allow for paying “finders fees” to unlicensed individuals – none explicitly permit it.  So anyone who is actively in business to collect fees from matching an investor to a company – should be licensed by the SEC.
3. As I mentioned in an earlier post, getting investors into an early-stage business is very dependent on the entrepreneur/founder/inventor team. Therefore, it is very difficult for a third-party to assume success or “guarantee” an investor. I have many stories about entrepreneurs who got a meeting with the “right” investor with the right materials including the right offer and still managed to “blow” the deal. That’s why we spend a lot of time coaching our clients on the language of capital.
4. We rapidly hear from prospective clients that “all I need is an introduction to an investor”. In reality less 5% these entrepreneurs are truly “investor ready”. The fact is – capital won’t come until you are ready.  So be clear as to whether you are engaging someone to provide introductions or whether there will be more services provided. If you need services, then hire a professional – attorney, accountant, business advisor, etc.
5. Paying for services with “futures” can be very expensive! You will also gain a long-term “partner” and that can be annoying.
6. In my opinion, as a very early-stage company paying someone for an introduction to a “potential” investor is likely to be a disappointment.

 

I don’t mean for my comments to be negative or to suggest that there is no solution to your specific situation and needs. I do want to imply that “getting someone to introduce you to an angel” may not be the best one. A key to successfully acquiring funding in an early-stage venture is to choose an approach where the funding source  “matches” the circumstances/objectives of the business.

 

All the best,

 

Robert Johnson

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Business Growth Masters, LLC -
Capital Catalysts for Entrepreneurs
Home of the Scalable Business Plan and QuikStart Capital Programs
http://www.bizgrowthmasters.com
info@bizgrowthmasters.com

Thank you very mutch and I appreciate the comment because the emotion that a inventor have to artchive the next step can play again the right decision.

Thank you again