CRAFTING AN OFFER – WHAT ELSE?
Karl Dakin
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
QUICK CALENDAR
Monday, August 5, Don Cohen show – 9 am MDT, LinkedIn Live
Tuesday, August 6, Successful Funding, 8 am MDT, LinkedIn Live (TBA)
Thursday, August 8, Community Revitalization, 8 am MDT, LinkedIn Live – Bill Huston – Investment Crowdfunding
?FUNDING POINT – CRAFTING AN OFFER – WHAT ELSE?
?The crafting of the investment offering may be the most important activity that will lead to a successful funding campaign.
?Over the past several days, I have discussed several distinct types of offers, including combining offers in a hybrid or in a capital stack. As discussed in this series, the basic questions of an investor are:
·?????? How much and how little can I invest?
·?????? How much money can I make?
·?????? How long do I have to wait to get my money back?
·?????? How likely is this a sound investment?
?Once you have identified your most motivated investor candidates and crafted an offer that matches the needs and preferences of these candidates, you should stop and ask the question, “What else can I add to my offer that will make it even more attractive?”
?There are few investor offers that I have viewed as could not be improved. Where a small business has invested in assessing the best possible investors, it is possible to tailor the offer to provide a greater incentive to invest. These additions, extensions or clarification may not be needed, but why fall short of receiving an investment for failure to go the extra mile?
?Is it possible to change the term of the investment? Can the entirety of the investment with a return of principal and a return be accomplished in a shorter time? Can the investment be staged so that the investor receives their investment back earlier while the return may be stretched out over a longer term? Can a combination of revenue share or interest coupled with a share of profits in the form of equity ownership give the investor some money early and some money later? Can changing the term of the investment from 5 years to 59 months achieve a favorable reaction?
?Is it possible to increase the return to the investor? Can the profit distributions to the investors be augmented with bonus distributions or revenue share if the company achieves defined milestones? Can the term of the loan be extended with additional interest payments? Can the investor be offered warrants to invest more in the small business?
?Is it possible to make precise commitments on payback of the investment? Can a loan with fixed principal and interest payments replace an equity investment? Is there a way to engage in follow on funding that can be used to buy out the initial investors?
?Can the risk of the investment be reduced? Can investors be offered a preferred position where they are paid first before the founders on profits distributions or liquidation of business assets? Can the business provide security or collateral as a hedge against failure to succeed or possible failure? Can guarantees or other promises be obtained that may guarantee a portion of the investment?
?Knowing the mission and goals of the investor and how they stand to benefit from the success of a business outside of a return on their investment, is it possible to amplify these benefits?
?This is a perfect time for creativity. Everything you can do to make your offer personalized and to stand out from all the other offers that an investor candidate may consider competition for their money should be assessed. This may be a suitable time to invite the board of directors, advisors, and consultants to weigh in on other addons to the offer. Better yet, ask your test group of investor candidates what would trigger their investment.
?
SUCCESSFUL FUNDING
TUESDAY on the Successful Funding show, Ron Yeager was my guest again as we discussed the mindset of investors. Ron’s career, which includes being an investor, an opportunity scout, entrepreneur, and problem solver gives him a big perspective on what investor candidates think when they see an opportunity.
You can view a recording of this show at:
?
You may view recordings of all past Successful Funding shows at my LinkedIn profile under Events:
?
领英推荐
RCI COMMUNITY FUNDS
As a member of this new company, I am working with a team of professionals to craft a new funding mechanism for revitalizing underserved communities.
TODAY, we presented our inaugural LinkedIn Live show of Community Revitalization. Four members of our team, which also includes Stephen Shaff , Bill Huston and Jeff Dangremond , joined with me in introducing the company, its mission to create sustainable communities and our business model.
You may view a recording of the show at:
THURSDAY, AUGUST 8, at 10 am EDT / 8 am MDT, the next Community Revitalization show will be hosted by Karl Dakin and Stephen Shaff with guest Bill Huston. The conversation will focus on the use of investment crowdfunding as a means of gathering funds needed to invest in a community in support of rebuilding efforts.
You may register to be in the audience for the show at:
?
DON COHEN SHOW
I will be a guest next week on Monday, August 5 at 9 am MDT on the Don Cohen Show. I will be joined as a guest by Erwin Jack and Bill Barkhouse . We will be discussing ‘Empathy”- the ability to see and feel things from the perspective of the other person. Is this a skill, natural talent or a little of both? Join us in the audience to participate in this conversation.
You may register to be in the audience at:
Don is my mentor and guru on using LinkedIn as a social media platform to build my brand and build my community of individuals and organizations who work like me to help small businesses and communities raise funding.
?
??
SUBSCRIBE
You may subscribe to this Weekly edition of my Instant Funding Newsletter, or you may subscribe to my Daily edition.
?
Karl Dakin, the Capital Coach
Dakin Capital LLC
?
Capital Coach | Stakeholder Investor Campaigns | Design, Stage, and Manage or Support | Reduce Time, Money, and Risk of Raising Funding | Increase Probability of Success! | Opportunity Management
7 个月What's in your offer?