JEROME GENTOLIA

So, you have your product and a solid business plan all set to go. Now what? You need to get funding. This is not an easy task. Investors don’t want to waste time on poring over a deal that would eventually be rejected anyway. They will focus on ones that have merit and fit the investment criteria. Having a well organized plan will greatly increase your rate of success.

All investors put a lot of emphasis on the quality of source or origin of projects. They tend to favor projects that are from trusted sources; or someone they have a history with.

It would be in your best interest to find out how investors operate and how they think. This will help you understand what you will need and who you should contact. In order to get through investors, you will need to find out who’s who. Find out who the investors have a rapport with. Who do they trust and respect. You will need to do your research and network with the right people!

Networking is the most important thing you can do to help your business get funded. Along with networking, there are many other important things you should know about investors. My latest blog goes into great detail on why the quality of deal source is so important to investors.

The name of the game is “trust”. There is a lot at stake for investors and the hopeful entrepreneurs, so be patient and do your homework.

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Many entrepreneurs make the mistake of going to an investor’s website to submit an executive summary, proposal or business plan. What they don’t realize is that submitting proposals using this method has the worst hit rate.

Getting your proposal to the investor’s hand is all about networking, networking, and networking. Believe it or not, this antebellum method of building relationship through networking and referral is the best technique to propitiate investors.

Successful entrepreneurs are successful networkers. This is how they find customers and partners. Investors are looking for entrepreneurs who know how to network. Showing that you are sophisticated enough to network your way through is key.

Entrepreneurs have the propensity to cold call investors without knowing enough about them. This is like going to a job interview without knowing about the company. Doing research and building relationships through networking with people who are familiar with the investor is paramount.

Getting an introduction or referral from an investor’s trusted network gives the investor an impression that you know enough about them. Knowing enough about them leads to better conversation and having ease of conversation is important to the busy investor.

I am surprised as to how many entrepreneurs cold call investors, when with today’s technology, it is so easy to find out people who knows the investor.