I was speaking with a gentleman after my last speaking session. He said he had an investment company but they always had a difficult time finding smaller companies worthy of investment. I have heard this time and time again from investment company representatives from all over the country. So just what could be the problem?

Imagine you are about to have one of the most important meetings in your life. You are sitting at the head of the table in a board room that you could only dream about in your past. But now you not only have the opportunity to be in this board room, but you have the opportunity to present your business venture to an investment group that is looking to invest $1 million in a company that has great potential. That investment could be exactly what you need to build the venture that once was only an idea in your head. Now it’s up to you. Will that investment group stay or walk away? How do you keep that $1 million from walking out of the door?

I have met with a few professionals from the investment community over the last year. My number one request of them has been to explain the best way for entrepreneurs and business leaders to gain and keep the interest of investors to capitalize their business ventures. Invariably, I have received practically the same response from each of them. The number one response has been as follows: “Most businesses and individuals who approach us don’t have their act together. Their business models and business plans are sketchy. Their financial statements or financial forecasts are either incomplete or clearly unattainable. It is very clear that they don’t understand what we expect as potential investors.”

Now, with that in mind, are you prepared to keep them in the room? The odds are that most of you are not.

Let me tell you secret that just might change your odds. The number one mistake an entrepreneur makes is trying to convince others to understand their business ideas from their own perspective. Always present your business venture ideas as opportunities. Not an opportunity for you, but an opportunity for them. If you are honest with yourself, you will soon realize that they don’t care about you, except to the extent you can bring them a sizable return on their investment. So stop trying to impress them with how great you think your ideas can become. Their main focus is on how great the return can be on their investment. Always present the idea from the perspective of the investor and not your own.

It’s all about the concept and the numbers. Therefore, your business model should clearly explain exactly how your product or service will make money. Your financial statements or forecasts should clearly state how much money is being made and the reasonable expectation of the amount of money that will be made through your business. Your business plan should clearly show that you have a focused mission, a stable team, a solid product or service with a niche or competitive advantage over others, and an identifiable demand in the market for the product or service. From the investor’s perspective, your business model proves the viability of the venture, your financial statements and forecasts prove the potential of the venture, and the business plan proves the stability and safety of the venture.

Don’t let that million dollar investor walk away. Focus through their lens and give them what they want. You are presenting an opportunity, not just an idea.

 

11 Responses to Why that Million Dollar Investor Just Walked Away…

  1. james says:

    This is a very insightful article.

  2. As a small business owner that is some good, solid advise. As we(small business owners) are playing on the field we need that play from the press box. Thanks coach.!!!!

  3. Rex Allen Jones II says:

    Thanks for your article. It’s good to know the perspective of an investor.

    LinkedIn = http://www.linkedin.com/pub/rex-jones-ii/6/759/852
    Twitter = https://twitter.com/RexJonesII

  4. Cynthia Mitchell says:

    Great information on seeing through the eyes of the investor.

  5. LOYCE BROOKS says:

    GREAT INFO. KEEP UP THE GREAT WORK COACH..

  6. Ademola A says:

    Mr Bruce, U are truly God-sent. I thk God i was able to meet with u and be at ur workshop @ this yrs Megafest. Yes! Its truly not hard as i might have thought. I can do this! Thk u for this article a great continuation of helping people.like myself to learn for we need great annointed and gifted teachers like.u filled with GodsWisdom to help those of.us that are called into the marketplace to move the Kingdom of God forward! God bless u and ur family sir

  7. Tucker Lott says:

    Back to the basics!!! That’s what I see in this article and that’s what I saw in your session at Megafest ..facing your giants. As a business owner, undercapitalized like many of my peers, your words are well received. We must always remember that it’s not about us, If we make it about them, the investors, we stand a chance of being the exception to the rule.

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