Are You Approaching Funding Your Project The Right Way?

With 37 years’ experience in raising capital through both traditional and non-traditional ways, I realize the value and importance of teaching, informing and educating my clients in various aspects of funding so that they are prepared to close a deal. No funding broker or agent can raise capital without the principal(s) participating in the process. I do not know of one investor that has ever placed money in a project without discussions with the primary or key individual in the project.

I approach funding differently than most individuals and firms I know that specialize in raising capital from investors. One of the differences and most likely the most important initially is I ask investors exactly what are they looking for when provided information about a particular project. Almost always it’s the same answer. “I want to know WHO is in charge, WHO is management, WHO am I investing my money in?” And if that isn’t answered in the initial written materials the investor reads, he is most certainly going to decline looking at the project further. If there’s one major mistake most entrepreneurs make is not telling the investor WHO they are, what achievements, accomplishments and successes they have. What’s their track record and experiences? Too many times the project over shadows management particularly is the project is full of hype and conjecture.

Another important approach I use is to build management in the eyes of the investor(s). Everything must be established and built on credibility, believability along with achievability. The attitude is almost promoted to the point that the investor begins to get the feeling that it’s a privilege to invest in this management team. I cringe when I see entrepreneurs practically begging investors to invest in their projects. And the investors tell me how that is such a turn off to them.

One of the most common statements made by investors is how the entrepreneurs aren’t prepared to raise capital. Whether it’s due to not knowing how to answer the investor’s questions to the materials not being adequate to read and understand the project. This is my main reason for the consultation and coaching I provide to my clients. Yes, it’s time consuming and costly but can pay off in the long run. One stutter, hesitation, pause or unanswered question can affect the outcome of you getting funded or not.

I want YOU to view raising capital like entering a contest with first place being YOUR funding achieved. If you are not prepared properly, others will take your investor and his money. There’s so much more in successfully raising capital than meets the eye. No wonder the vast majority never achieve their funding objects.

Author:.

– Ken M. Hollowell, founder of both Prfran Consultants, Inc. and Profran Capital Group, Inc. and is a leader in the field of franchise development and non traditional methods of raising capital since 1980. Ken Hollowell has lectured before many business organizations, Universities and Colleges on the subject of franchising and hosted a radio talk show of radio for years.

Ken Hollowell conducts numerous seminars annually on franchise development and investing in a franchise bus...

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