DUE DILIGENCE OF AN INVESTOR CANDIDATE – PART 5
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, July 22, Don Cohen Show, 9 a.m. MDT, LinkedIn Live
?Tuesday, July 23, Successful Funding, 8 a.m. MDT, LinkedIn Live, Facebook, YouTube
?Tuesday, July 30, Successful Funding, 8 a.m. MDT, TBD
?Thursday, August 1, Community Investment Funds, 8 a.m. MDT, Community Revitalization
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FUNDING POINT – DUE DILIGENCE OF AN INVESTOR CANDIDATE – PART 5
?So, you met someone and you think that they may be an investor candidate. You need to determine if they are a true candidate and, if they are, what needs to be done to get a check.
?Before asking for a check, which may lead to a rejection, consider how your investment offer may be improved to provide a greater benefit to the investor candidate. This information may be gathered by conducting a background investigation of the investor candidate to assess the benefit to them from the success of your business. This information may also be gained by asking the investor candidate directly.
?I recommend that any pitch to an investor candidate start with the candidate as the subject and centerpiece of the conversation. Any pitch that starts with ‘Give me money’ sets the wrong tone. It may convey a lack of concern or disrespect for the candidate, which may carry over to their view of how you will manage their money.
?I recommend starting a pitch with a statement that your business may be of help to the investor candidate. The statement is not a guarantee but rather a possibility. The investor candidate is invited to consider this possibility and verify that the statement is correct. With confirmation that the success of your business will benefit the investor candidate, the groundwork is laid for a conversation in which the need for funding may be raised.
?The need for funding is presented as a statement and not as a request. The investor candidate is asked for advice on how the investment offer may be changed so that if the candidate should invest, the value of the investment is enhanced. If the candidate is willing to engage in this discussion, the probability of an investment is almost certain. The discussion will represent a negotiation leading to funding.
?It is possible that the discussion will lead to changes that are unacceptable. The investor candidate may want a greater percentage of equity ownership, some control over the business as a director or manager, or restrictions upon how invested money is spent that will break the deal.
?It has been my experience that changes to an investment offer often are workable. Requests by the investor candidate may cost the business little or nothing while generating significant benefits to the candidate.
?By placing the investor candidate at the center of attention, a great deal may be learned about the candidate, their values and how they may align with your business. This knowledge of the investor candidate may cause you to walk away or it may lead to an investment.
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?SUCCESSFUL FUNDING
?NEXT TUESDAY, my guest on the Successful Fundin show will be Bill Huston with Crowd Max. Bill and I will discuss investment crowdfunding. We will explore when and why non-wealthy people may invest more than wealthy people.
You may register to be in the audience at:
LAST TUESDAY, my guest on the Successful Funding show will be Ron Yeager on Investors of Different Flavors. We talked about the different preferences of investor candidates and how this may affect a capital strategy, crafting investment offers, and campaign planning.
You may see a recording of this show at:
You can see all of my shows at the time of broadcast or recordings of past shows at my profile on LinkedIn.
?DON COHEN SHOW
NEXT MONDAY, ?I'll be speaking at the LinkedIn Live Event on 7/22! I will join hosts Ford Saeks and Don Cohen on July 22 as we discuss 'experts.' Looking forward to Ford's insights as a publisher who has empowered many to showcase their expertise through books. #LinkedIn #Experts #Speaker #Event #Publishing
You may register to be in the audience for this event at:
LAST WEDNESDAY, I was a guest again on Don Cohen’s LinkedIn Live show. We talked about ‘integrity.’ Don portrayed integrity as a combination of strength and trust – to be depended upon. I viewed integrity as part of a relationship which required respect for others. Several examples of integrity were reviewed and discussed.
You may see a recording of this show at:
LAST MONDAY, I was a guest on Don Cohen’s LinkedIn Live show. We talked about teams and teamwork. In my projects, I focus on building custom teams to drive business opportunities. It's crucial to identify the required skills, experiences, and contacts for each team member role and find individuals who are both capable and willing to take on these responsibilities.
You may see a recording of this show at:
Don is an expert on LinkedIn, particularly on the use of Live streaming to build brands and communities. We will discuss using LinkedIn as a social media platform for building communities that support raising funding.
All shows where I have been a guest can be viewed on Don Cohen's LinkedIn page under Posts.
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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
8 个月Have you ever asked an investor candidate what else you can add to your offer to make it better for them?