Sunday, May 5, 2013
6 Tips to Attract Investors and Raise Capital
1. Get Noticed: Tell your story to every appropriate writer and producer, and if they bite, you will know that you have the makings of a winner. If your idea hasn't been covered by major media outlets, it isn't appealing and isn't worth investing in, no matter how great you think it is. What gets noticed? Big, bold ideas with big returns: if you can dream it, you can do it.
2. A picture is worth a thousand words and video has about 60 pictures per second. Do the math and get your message into video in a compelling, charismatic format that tells your story, and then get that video in front of anyone with eyes and an interest! Kickstarter.Com is a great outlet for this, with the added bonus of raising capital WITHOUT selling equity. Look toward Indiegogo.com if Kickstarter is too conservative for your project.
3. Only take money from people you TRUST! A greedy investor can ruin the party for everyone, and it happens every day in business. An investor once told me... "I'd rather see the company explode than sell any of my equity to anyone else." That is exactly what happened. Make SURE that your investors believe that you are the best person to control and run your company and that they back that up in writing within their agreements. Keep a vast majority of the votes if not all. If your idea and execution are solid, they will be more than happy to go along for the ride. If they aren't, you will lose bits and pieces of your company until you don't have enough left for your big payoff. A great negotiator is a greater investment, so stick to your guns.
4. Find partners and investors that COMPLEMENT your growth strategy. I am the founder & CEO of CapsulePen LLC (http://pillcontainers.com), a pill case manufacturing and design company. My investors include a medical device manufacturer, a pharmaceuticals advertising executive, a venture capitalist, a world famous attorney, a business consultant and an accountant. I call them my dream team!
5. Call people! Former bosses know how brilliant you are, even if you didn't always see eye to eye with them. Long-time friends do to! The fact is, if you are worth investing in, people are going to invest in you, you simply have to ASK them to. Enter contests like the NGLCC Roll the Dice Competition in Dallas this summer http://www.nglcc.org/events to reach a wider audience of supportive, successful people.
6. Get Help! You can't do this alone, no one can, and it isn't any fun that way anyway! Find a co-working space to force yourself to mingle, join every networking group that you find supportive to your dream. Invite people in to get hooked on the storyline of your life, it is an exciting one, and very few people in the world ever try it for themselves! If you would like to speak on this topic with me, feel free to email email@example.com or join me for my NGLCCNY Webinar Wednesday on June 12th!
Serial entrepreneur Joe Cote is Founder and Inventor at NGLCCNY Business Member Capsule Pen.