It doesn’t matter if you’re first getting started or you’re trying to expand your business, raising capital to meet your goals is no easy feat. It includes raising money from multiple sources, and in the process, you’ll speak to plenty of people who won’t give you any money at all.
If you don’t want to waste a lot of time, you have to maximize the time you spend raising capital for your business. Here’s exactly how to do that.
Ask the Right People
If you ask just anyone to invest in your business, you’re going to get a lot of no’s, and you’re going to spend a lot of time getting them. You’ll quickly feel discouraged, and at some point, you may decide to throw in the towel and give up altogether.
No matter why you’re raising capital, you can’t ask just anyone. You have to be smart about who you ask.
For example, FINTRIX, a platform for family offices database that can provide you with invaluable information about private family offices that can help you determine whether or not you should reach out. Uncover their previous investment history, sources of wealth, and industries of interest before you give them a call. By choosing who you call wisely, you can increase your chances of an investment from the ones you contact.
Make a Personal Connection
No one likes receiving cold calls from complete strangers who know nothing about them. Even if they might normally be interested in your business venture, if they get a scammy vibe from you, they’re going to tell you no before they even give you a chance.
You can build a better business through personal connections, and you can increase your chances of raising capital when you make a personal connection with everyone you contact.
A few ideas include:
– Contacting people who attended the same college as you
– Sharing personal information about yourself
– Opting to meet in person instead of talking on the phone
– Engaging in small talk about children, pets, or the weather
Get Social with Donations
Don’t just take those donations and run. The money itself can do a lot for your business, but so can talking about the money you’re raising.
Social proof is used by many businesses to make people think they’re popular. You want investors to think that many people are interacting with your business because it will encourage them to invest when they otherwise wouldn’t, or they may be willing to invest more knowing their investment will pay off.
When you receive donations or investments, ask if you can mention the company that donated on social media, and encourage them to share their investment on their social media. It will make others think investing in your business is a popular thing to do, encouraging others to reach out and invest too.
Always Show Your Appreciation
Getting investment in the first place is a lot of work. You may be tempted to move on as soon as you get it, but that’s a bad idea. Just as gratitude can transform your workplace, so too can it transform your relationship with investors.
Send out thank you notes, host thank you dinners, and consider hosting investor events. If you show your appreciation for their investment, they’ll be more likely to invest more in the future, and they’ll be more likely to encourage their associates to contribute monetarily to your business as well. Not to mention, you’ll feel good knowing you showed your appreciation to those who make your business possible.
Don’t Be Afraid to Say No
When you’re raising capital for your business, you probably think you should accept money wherever it shows up. However, that’s the wrong approach. Just as you should learn to say no in your personal life, so too should you learn to say no in your professional life, even if it involves an investment opportunity.
Not only do you have to think about money, you have to think about what other resources an investor can bring to your business, and you have to think about whether this is a person you can work with for years to come. No matter what the reason, if you’re uncomfortable, you should say no.
Raising money is never easy, especially if you’re trying to raise capital for a business. With these tips, you can make it a little easier, so you can spend less time talking to potential investors and more time using their money to enhance your business.