Sometimes choosing the best investor is focused on chemistry.
Eager and enthusiastic entrepreneur with a dynamite concept seeks like-minded investor to supply funding for a mutually rewarding long-term working relationship.
You can laugh as of this "personal" ad, but let’s not pretend: Finding funding for your business could be a little like romance. You should put your very best face–ahem–ideas forward so that you can woo potential investors. Indeed, websites such as for example Go4Funding.com are online portals that work as global matchmakers for entrepreneurs, investors and business experts. Entrepreneurs and companies can post their company’s capital requirements in the Funding Needed section or scour the profiles beneath the "SEEKING TO Invest" section.
Other sites, such as for example RetireAt21.com give a forum for young entrepreneurs to ask questions, get critiques because of their websites and ideas, and make connections that can lead to a cope with potential investors.
Even seeking financing through social media is a bit like registering for online dating: replace your bio for your business goals and personal interests for your service or product focus. But experts say that, exactly like in dating, being your authentic self is crucial through the entire getting-acquainted phase. It’s about building the trust necessary to persuade an investor to enter a long-term relationship together with your company.
Show Your True Colors "In the current digital world, striking deals without meeting personally may be the norm," says Lolita Carrico, an internet entrepreneur and founder of ModernMom.com and MyGLOSS.com, who estimates that about 90 percent of the people she’s caused over the past couple of years are those she’s met online or through social media. "I’ve met hardly any of them personally, unless we are actually at a conference together," she says.
Carrico suggests being clear, professional and friendly, just as you’ll personally. "Social media tools like Twitter and Facebook also let those whom you use get yourself a glimpse of your personality. THEREFORE I continue to keep my Twitter and Facebook streams professional, but also friendly and helpful," she says.
To provide her followers and potential investors an excellent virtual image of herself, Carrico has it right down to a formula: "thirty percent private information, updates about my day, my children, fun stuff; 40 percent business updates; thirty percent sharing links to relevant news that I believe my followers will be thinking about that also suggest to them that I’m along with my industry’s news."
This is a process that’s brought Carrico through some lucrative deals and how she could launch MyGLOSS.com so quickly.
"We launched almost 8 weeks sooner than originally planned due to a partner who wished to execute a campaign with GLOSS." Carrico admits that she had never met anyone from that company face-to-face but was undeterred. Referring specifically to the area limits on micro-blogging site Twitter, Carrico observes, "I believe 140 characters are ideal for people to get a knowledge of me and my business. That it is quite efficient."
Taking the partnership to another Level–Offline Adrian Dayton, a lawyer and founder of Comrad Esq, is no stranger to striking a deal online. However, the writer of Social Media for Lawyers recommends continuing offline, by telephone if you cannot get together personally. "Only 8 percent of communication is in what; 37 percent is tone and inflection; and 55 percent may be the visual/body language," he says. "With a telephone call you do not quite get the entire effect, nonetheless it sure beats the 140-character limit imposed by Twitter."
Dayton says he’s frequently asked whether people make spending decisions through social media. "Of course not, but I’ve numerous types of individuals getting contact with well-connected individuals through social media that can move those conversations offline," he says. He added that he advises owners of large and smaller businesses to use social media to help make the connections and convert them as fast as possible into your normal sales process. "People you meet [virtually] remain just people."
Present a Well-Groomed Business Plan Sooner or later those individuals will want to see a lot more than only a status update. They’ll want to judge your business plan. Rhonda Abrams, writer of The Successful Business Plan and founder/CEO of THE LOOK Shop says that in the event that you haven’t met your potential investor face-to-face, your business plan is more important than ever before. "They are judging how well you’ve done your homework with what you are gaining paper or in a presentation," Abrams says.
She also likens the procedure to dating. To make sure your potential partner will dsicover your company in its best light, treat your plan with respect. Don’t just dump the whole lot into an e-mail and cross your fingers.
"You might want to send them an executive summary first," suggests Abrams. If you cannot meet personally, she adds, a free of charge web-based application such as for example ZoHo may be used to walk an investor through a follow-up presentation highlighting how big is your market, profitability and other tips.
Check out Them Just because you’re the main one looking for funds doesn’t mean your potential mate should remain shrouded in mystery. Abrams warns, "Invest the someone’s money you will be partners, so be sure you can live with them."
Lena West, founder and CEO of xynoMedia, believes the most effective way for entrepreneurs see if they are appropriate for potential investors is to dig. "Don’t just depend on references; visit their social profiles and see what they reveal. Ask questions in regards to a person or a business. Predicated on everything you find, determine if this person will mesh well with you or not, and make an informed and informed decision," West says.
Bottom Line West recently signed a book cope with a realtor and a publisher predicated on a recommendation from a reliable social media acquaintance. "That’s where we get into the true value of social media," she says. While "people will get away with just a little slickness" personally, virtual communications need "authenticity grease" to be able to thrive.
West highlights that although it helped to learn that both her agent and publisher are from large, well-known firms, she maintains that if companies mean what they state, say what they mean and so are who they state they are, they can not fail striking a deal online.
"The thing that may happen is that you and a potential investor or partner won’t go along and–guess what?–that could have happened personally, too. But through the use of social media, you saved everyone amount of time in the security line at the airport," West says.