Nothing Beats a Day of Education – Part 4 How to Raise Money Now for your Business

This was a very interesting class. It has always mystified me how some people can just get financing for their business before they even start and some can’t even get financing after they have been in business for many years. Asheesh Advani, Owner/CEO at Addwin Holdings, helped to make sense of it all in his hour long seminar.

This presentation was not really a how-to seminar, but more of a why are you doing it, and what to expect when you do borrow money.  

Take Away Points:

·    Raising money at heart is making promises we feel good about and dealing with the consequences.

The gentleman behind me in the seminar learned this the hard way. He borrowed over $3million from friends and family and lost it all. He was upset that there was emotional impact from borrowing, in that many of those same people are no longer speaking with him.

·    Look to family and friends first if you need to raise less than $100K

·     Try to get smaller increments from a lot of people rather than1 person for the total amount.

·     When borrowing less than $25K, investors are more patient about getting paid back than those with more than $25K invested

·     When trying to borrow from family and friends: EDUCATE them on your product or service, don’t try to sell them. Sit down and explain it to them, show them a sample get them excited with you.

·     Structure a repayment plan for small investors rather than giving them a piece of your company.

·     Don’t look for venture capital unless you need to raise more than $500K

·     Never cold call an Angel Investor or VC – get an introduction first

·     Don’t present to either type of investor unless you have spoken to at least 3 other firms who have presented to them first so you can get a feel for what they are expecting from you in a presentation.

Overall, the entire Growth 2.0 conference was an incredible experience and I am looking forward to next year’s event.