Don't Ask for Me to connect You with my Investors. Do This Instead...

I get over a dozen requests per week from individuals who are looking for funding.

And - most of those requests are completely unrealistic.

Yes, LinkedIn is definitely a professional connection and networking platform, however - the rules of engagement do not change, especially when it comes to raising money.

More often than not - I get asked "if I have any investors that would be interested" in this type of business or that type of opportunity.

This is a completely wrong approach. At Global Consulting Inc, I've made it a rule that when someone asks me to connect them directly with an investor or are asking for me to find an investor for someone - it will be ignored - especially if it's on the first contact.

Here's why:

On the first contact - you should always aim to get "interest" instead of a straight out pitch asking for money. The likelihood of this request getting ignored is very very high.

If I don't know about your company and have not heard of it before - there's no way anyone is going to just hand out money to you. This is true for most sophisticated and well-versed investors.

On average - an investor needs to do at least 30+ hours of due diligence before writing a check. And, it's important to understand that when it comes to conducting due diligence, a series of documents, intellectual property among other assets will be required.

This is the single and biggest reason why you absolutely need to come prepared. Don't wait for me to ask you for these documents, have them ready and ask me if I would be interested to learn about the deal first prior to pitching me on how much you need.

Aside from being "just another deal" - what other elements does your deal comprise of that makes it interesting and different?

Essentially - Why should anyone invest with you?

Convince me that it's even worth introducing to my investors.

You need to understand that the networks and affiliations that I bring transactions to have a very "reputable and reliable" means of generating deal flow. Thus, when I present them with something, it has to stand out and make it worth their while.

If someone is constantly presenting me with unrealistic deals that make no financial sense or have no sense of credibility behind it, I am most probably going to ignore any deal flow that originates from that source.

Credibility is something that is crucial during a deal origination stage.

Do your research before approaching funding sources. Make sure that you have reliable data and statistics that help you stand out.

Be authentic! The market is filled with thousands of deals. Yours needs to stand out! Do something different and be authentic while at it.

This is true for all industries and different types of businesses. Authenticity makes the deal that much more attractive.

Also - you need to be well informed and be able to educate via different modes of content. It doesn't matter if it's an article, a white paper, a course or even a series of videos. I need to know that you know what you're talking about.

Even upon following all the 3 first rules, there's no guarantee that you will still get the money.

You need to set realistic and measurable expectations. For most, this is the hard part.

I know that a lot of business owners and opportunists get so tied up in the "dream" that they forget to open their eyes and wake up to the reality of things.

An example of this is to expect a closing in 30 days. Some think that asking for millions of dollars and providing a deadline with it will help the cause. This, in fact, is probably one of the biggest turn-offs in the industry.

Don't EVER ask for money and give a deadline with it. You are shooting yourself in the foot.

No investor wants to be part of any problems. When you ask for money and provide deadlines, it puts a tremendous amount of pressure on our side and makes us think twice about funding your deal.

On average, it may take from 3, 4, 6, or even 12 months to get the money you want. If you're anticipating anything less, you're being unrealistic.

Most business owners are so into the term of "using other people's money" that they think it's ok to do so on a potential transaction or deal.

You need to understand that investors will ask you on how much money you've invested. You better have a good answer.

If you're looking to get funding, you need to prove your own financial capability by demonstrating that you have "skin in the game." I've mentioned this many times throughout my other articles and cannot emphasize enough on how important this is.

For the most part, asking for a few hundred thousand dollars already gives us an indication that you have a team. And - it is expected that those who are the principals in a deal have some skin in the game themselves. This will always be verified.

This is by no means intended to offend any brokers or consultants for that matter.

Stirring clear simply means letting us do our due diligence, letting us speak to the principals directly and letting us handle the validity of the deal.

If you need to be compensated, it is with the reasonable expectation that you have something in writing with the principals. If we have to draft something for you, it looks as though you are inexperienced and have not necessarily strengthened nor confirmed your position in writing.

Being in business as a consultant or broker means that you have set up a series of protocols and processes to protect yourself. If you're looking to represent someone, have it in writing and initiate any capital raising activities thereafter. This should be a basic first step.

Building bankable relationships means that you have to put a great amount of effort in "nurturing" those relationships.

Capital raising is a marathon and not a sprint. Take your time and do it right. For the most part, you will automatically be in a position to attract capital if you're doing things right.

Create a great company and build your legacy properly. And remember, set yourself apart!