Pros And Cons Of Crowdfunding
some documents you need to succeed. We've started to touch on some of this for angel investment clubs. Um, and just outreached angels Go to the 50 questions first. You will need an executive summary to get into most clubs, but I say have the business plan ready to go. There is nothing that kills deal momentum faster than an awesome idea. An awesome entrepreneur who just presents an awe inspiring presentation, makes me hungry to learn more. I've got your executive summary, which may be 1-5 pages, maybe 2-5 pages. And then I say, hey, can I see your projections? Can I see your business plan? No, no, no, no. I haven't had time to do that yet. Okay. You mean you haven't done projections and how do you know how much to raise for me? How do you know the dollar amount that you need? Hello? Uh, this is why I say sometimes, even though a club may say all we need is an executive summary. Do a little bit more be ready. So if we're engaged and asking you questions, you can say here here here and s...
how off how prepared you are, Minimum two Year projections. Tell me what, know how you're going to spend money and work through the details that your use of proceeds will get you to a point of value. Do some research on your competition. Even if you don't build out a full blown business plan, do a little bit more than that one page on your slide deck. Know your competitors know where they stand. They may be collaborative partners or strategic partners for you. No, I'm, I'm gonna be asking about it audience. I want to know What is the number one reason why entrepreneurs fail to raise money from angels? My view. Number one reason why you end up with nothing Wall Mount, pardon? Ask for the wrong amount. Yeah. That's usually how you lose money and investors lose money. You're not even at the table yet. Where you don't even get the cash, You don't walk in prepared. Good reason not my answer. Anyone else? Here's my answer. You stop, you stop asking. Here's Howard Schultz. Terrific guy in his book. Uh, he described what it took to raise money from angels around the pacific northwest. He solicited and sat down for coffee With 242 different people And he got knows from he heard no one's gonna pay that for that. What do you mean this? I don't think you can do that. And he wasn't even looking to become the Starbucks that it is today A great innovator. He had a much smaller idea of what he thought his coffee concept would become, but he got 25 yeses. People don't raise cash when they stop asking for cash, they stop at the first no. So when people complain to me and say I can't raise cash for my business, I asked, how many people did you pitch? Well, No, wow. Maybe 10. We're not coming to you. You have to come to us. If you can do this, I know you can sell your products and services. I know you will find those customers. So when somebody says Susan, when should I say uncle, when should I give up? Do you want to know my pat answer 243. That's what I say. You can stop after you hit 243, but I want you to beat Howard. I want you to raise that first round of capital and fewer than 240 to beat Howard, let that be your milestone benchmark if he did that, can you person you know, you are entering into a landscape Where Angel investing is so more popular than it was years ago. Now there is crowdfunding. Now, there are incubators, club, state agencies that want this to happen. Your road should be easier than Howard's Road, But he didn't stop. He didn't let 217 naysayers say, I can't do this, wow nose can create new opportunities. Every no, now knows what you're out to do. 25 people said Yes, don't stop until you reach that right dollar amount. Why give up on your dreams so easily? Gosh, you're giving up too easily by one or two nose and maybe it's a little better targeting that you need. I say, don't stop until you get the esses. You're all too smart, your dreams, you have great ideas here and out there. I know it. Don't give up on yourself.