A Blueprint for Successful Capital Raising - Yes There Is! (Behind the Scenes)
By now - you're probably wondering why I keep talking about capital raising so much and so frequently...
Evidently, this week alone, I've had over 21 requests on raising funds for companies that are located all over the world. 80% of my requests come from the United States.
With that said, I want to give you behind the scenes of what is required to start raising funds for your business or possibly for someone that you know.
Let's be frank, the business of capital raising is not an easy job. However, it does require a certain degree of commitment from your end and for you to assign dedicated resources towards it - if you desire a positive outcome.
With that said, are you walking on a thread?
If you're strapped for resources or commitment, then I strongly suggest that you avoid going to market at all costs.
This is true for almost any kind of business that you're in. Whether you're starting a hedge fund, a private equity fund, or simply a company that you want to grow. Resources need to be allocated to ensure a steady and consistent message is being broadcasted.
Why?
Because you want to demonstrate to potential investors or your future financial partners that you are capable of keeping your brand afloat and that you're communications are not exhausted due to lack of resources.
Yes, believe me, communications matter.
More importantly - How you communicate matters most of all
You decide what kind of messages you broadcast and you definitely decide who gets to see that.
By today's standards, targetting is very crucial. Yes - that goes for capital raising too.
Yet, you still need to know how to communicate to those specific targetted individuals and investors. You still need to create messaging that connects them to your brand and business.
It's important to understand this critical point. It's no longer about you and how you need the money. It's about what you can do for them (the investors and/or financial partners) and how strongly they feel about doing business with you.
Which leads us to figure out exactly what will make your offer compelling while still being able to deliver great value. Yes - value. It's been emphasized throughout LinkedIn on many occasions by financial professionals and well-connected individuals.
Yet - what is value to an investor? How can you figure that out and integrate it into your messaging so that you immediately stand out?
The answer is simple. To know what you can contribute, identify what they need. Figure out a way in which you can solve a problem quickly, efficiently and cost-effectively for them. Perhaps it can simply be putting two pieces together to make one jumbo solution that solves a lot of problems all at once.
Knowing the answer requires you to dig deeper into their world and that means, making an effort to show up in front of them. A great part of this is to build meaningful relationships with those who are catalysts and are generally connected to such investors. (Yes, that includes me too)
With a diverse array of resources at your disposal - including specialists who are in a position to put deals together for funding, you should explore all the options that make sense for your business.
And - to expand further, the question still remains. Is there a blueprint for Capital Raising that can be adopted by businesses?
Yes there is - and I'm going to show you exactly what it is:
But, before we begin, you need to understand something...
For the most part, business owners are busy with their schedule. They need to run their business after all. No investor wants to see a "part-timer" trying to raise capital, especially if you're seeking a large investment commitment.
Which leads us to our initial statement:
What dedicated resources have you allocated to ensure that your communications are consistent and so that you have someone or an organization that is representing your company's strategic positioning to investors/financial partners?
Yes, I'm serious. It doesn't matter if that person is an individual within your own organization. It has to be someone.
Or - at least a third-party who can iterate your unique value statement and position to get appointments with investors so that a streamlined communication process is established.
Even at that, you will still be required to set up a few tools to get the job done and will need to focus on building a solid platform to make this work successfully.
To master capital raising, you will need:
- A well-designed website
- Copy that converts (you need to sell your message and make sure that it is compelling. Boring copy does not do anything for you. You may as well not have a website if your copy is not compelling enough)
- Significant and Unique Content - to make sure that potential investors/financial partners can review your business, your expertise and get familiar with your brand and ultimately with "who you are" and "what you know"
- A strategic well-designed and functional marketing and conversion funnel. This is critical since your business needs to integrate automation tools wherever it can. In this case, the funnel needs to be designed in such that it communicates uniquely with your potential investors
- Well-documented business system. Yes, I mean every area of your business, from the most basic task to complex execution plans, your business needs to be well documented. To establish credibility, you need to demonstrate that you're able to consistently provide results. To do this, documenting your procedures and processes can play in that favor
- Dedicated Project Manager (committed to capital matchmaking). Yes, you read right. A project manager will be someone or a third-party that handles all the aspects from point 1 to 5 and more. This includes setting up capital roadshows and presenting your brand to the vast scope of investors that are out there. This, of course, requires you to be active and present when such events and get-togethers take place
Aside from the list stated above, there are obviously other factors that go into setting up your perfect capital raising system. For now, I want you to really grasp what has been shared here and I want you to take your time and identify what you need to do next so that you're well positioned to move ahead.