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Ego, the Pitch, Estimates, Purpose and You – General Tips for Capital Raising Summarized Into 5 Paragraphs

March 12, 2020

Put Ego Aside
Most successful entrepreneurs have reached out to friends and family in the beginning. I’ve come across too many who let their pride get in the way of fundraising and believe that they can do it all themselves i.e. getting investors from cold calls. Reach out to those who believe in you and don’t try to do too much yourself. Get help!

Pitch the Opportunity
When asking for money, always treat it as though you are truly giving the investor an opportunity and imagine how upset they would be when the business succeeds, and you didn’t give them the opportunity. This will change your mindset during the pitch and give you the confidence you need to succeed.

Double Estimates
When you’ve estimated how much money you will need to execute your business plan, multiply it by two. It always costs more than you expected, and things always go wrong.

Investing in Business or You
Remember that investors are first and foremost investing in you, not the business. They know that things will go wrong. In fact, I’ve even heard a VC say that the only thing they know for sure will not happen is what is written in the business plan. When you need to pivot, either big or small, they want to know that you’ll be there to see it through.

Passion and Purpose
Passion is often talked about and investors definitely look for this. But even more so they are looking for someone with a purpose. Someone who is building a business because they want to accomplish something, to make a difference, and nothing will get in the way of that.

For more information on raising capital and handling the other unique challenges of running a small business, visit our site at https://www.riskebiz.com. Register to receive a free copy of our upcoming “Small Business Survival Guide” book and connect with accredited investors to potentially fund your startup.

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