Page 162 - Midas Touch

Listening is a sign of respect. Being interested rather than trying to be
interesting is also a sign of respect. Be respectful, and you will win, not
only in business, but in life.

Two Tips on Raising Money

Tip #1: Seek advice from accountants and attorneys when preparing
your pitch.

Not only is it good practice, it is fabulous education. If they are sharp
accountants and attorneys, you will be forming great relationships. They
can also introduce you to other great people.

If they are incompetent professionals, and there are many of them, you and
your business will suffer. So take your time and be picky when selecting
attorneys and accountants.

Tip #2: Begin asking for money before you need the money.

All you need to say is, “I’m starting a business in a few months.” Briefly
describe the business, and why you’re excited about it. This pitch should
take less than a minute. Again, if you keep talking, you lose. After a

minute, ask questions such as, “Are you interested? Would you like to hear
more?” If the answer is yes, then ask, “May I call you when we are ready
to start talking to potential investors?”

If they say yes, take their name and keep your promise to call them—in
the future, not the next day.

Remember the rule: “It is easier to ask for money when you don’t need the

money.” You don’t ever want to sound desperate and needy, even if you
are. Don’t give them sob stories or tales of woe. Avoid exaggeration and
promises of excessive returns. Investors are more likely to believe
someone who is conservative and cautious, rather than excessive and
cocky. So start early, practice, don’t over-promise, and obey these rules for
raising capital.

What Investors Are Afraid Of

Many people dream of quitting their job and starting their own business,
but they are afraid of failing. This is a legitimate concern.