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How To Find Investors To Finance Any Business Deal
How To Make Investors Line Up And Practically Beg You To Take their Money To Finance Your Business Or Project in 7 days! 100% GUARANTEED!
By Dr Godwin King
There may come a time that you need OPM (Other People's Money) to finance the business deals you do. You may need to find investors from time to time, so it's good to know how to find them if you need to.
Where Do You Find Investors?
You can find investors absolutely everywhere, except possibly prison and a few other not so nice places.
An investor can be a real estate broker, stockbroker, doctor, merchant, lawyer, manufacturer, family member, heir, etc. Finding an investor, though, can be done many ways. You've got something working for you that is very important. You have the fact that the investor is looking as hard (maybe harder) for you, as you are for him/her.
Time is money and the longer they wait for a deal to find them, the more money they're losing. The best place to find these investors and have your opportunity ad be seen is in the advertising/classified/business pages of financial and local newspapers.
There are two advantages to using newspaper ads.
1. Newspapers reach lots of interested risk capital investors AT ONCE!
2. Investors respond quickly to ads that peak their interest. A well-written ad placed properly in the right publication will put you in touch with risk capital investors very quickly.
DAY#1: Write The Ad To Get Investors To Contact You.
Here are some rules for creating your ad.
1. Describe the kind of business you are working with. Some investors are only looking for certain deals, no matter how much profit they make.
2. Specify the amount of money you need. Ask for a little more than you really need just in case unexpected things come up.
3. Describe what kind of return on investment they can expect.
By including these items in your ad, you will pre-screen the people responding. People that have no interest in your deal won't respond to your ad.
This is because your ad does two things:
1. The ad makes sure the inquiries you get are from people who are interested in the business you are dealing with, and they have the amount of money you need.
2. It lets the potential investors know what they are most interested in, which is what they can possibly get from this investment.
An ad written in this fashion is what you should run. It gives the full idea in just a few words. This way you waste little time in weeding out the looky-loos and tire kickers. (Every business opportunity ad will get some of those.)
IF YOU CANT WRITE YOUR AD, WHERE CAN YOU GET FREE AD SERVICE TO AID YOU?
If you ever need help writing an ad that 'd enable you to attract as many prospective investors as you 'd need, you can get a free advert review service at http://u-m-x.com
Place it in the business and/or financial sections.
CAUTION: When you write your ad keep in mind that you're not dealing with a bunch of idiots. These investors didn't get surplus investment capital by being stupid.
Whatever you do, avoid statements such as:
You'll get rich quick ... Fantastic returns ... World's greatest opportunity... Can't fail... Etc.
These statements simply turn investors off and make them go far away.
I suggest you first use classified ads to save money. The larger display ad will generally get a better quality of replies than those from classified ads. Also, use display ads if you need larger amounts of money. The problem is that a display ad can cost ten times more than a classified ad.
DAY#2: Run The Advert In Relevant Media
Where Do You Run The Ad?
Now we need to find out what newspapers are best to use.
Stay with local papers if you need the investor to give both capital and participation, then you stay with the nearest large newspaper. If you just need the money then you can go anywhere.
Try smaller papers if you don't need too much money (under $50,000).
If you just want capital investment from the investor(s), then Try any other regional financial newspapers. This way you'll reach a much larger potential investor market in other areas. You might have to go meet them or have them come to meet you.
If you need a very large amount of money$1,000,000 or morethen use nationwide financial newspapers and magazines. Start in your own area and spread out if you need more.
Here's a website that lists all the newspapers all around the world. It even lists them by category. NewsLink -http://www.newslink.org/
You Just Need ONE Investor.
Most of the time you only need to find one investor. You're looking for QUALITY inquiries. That's what counts. You don't care about the quantity of replies you get.
How often do you run the ad? Run the ad just once in the publication(s) you choose. Remember, you're looking for one investor in most cases. You'll be weeding through the initial replies before you'll need more.
Reply to the inquiries right away. Speed is the key. Capitalize on people's interest and curiosity while it's high before they find something else to invest in. When you've run out of prospects, and then run the ad again.
Just don't keep running the ad everyday. When potential investors continuously see the ad, they think something must be wrong with the deal since it's being advertised for such a long time.
NOTE: if your ad is written by a professional copywriter in a provocatively compelling fashion, I can assure you that running the advert once may get you more prospective investors literally lining up and begging you to take their money , more than you d ever need!
DAY#3: Handle The Inquires That Come In.
You're going to get inquiries to your ad. You might get things like:
1. A postcard with a couple of words written on it, SEND DETAILS, it might be barely understandable.
2. A desk memo from some small company that was a promotional gift.
3. A letter typed beautifully on company letterhead.
4. telephone calls etc
You are going to have the urge to only respond to the nicely typed letters and forget all the rest. PLEASE FIGHT THIS URGE!!
Business people often just write one word and two word letters. That's all that is really needed.
If you get phone numbers, then call them for an appointment. Just get the appointment, no selling on the phone.
If you get mailing addresses, then send a letter asking for an appointment.
You will give them the details when you meet.
Reply the same day they arrive. If you wait, who knows what you might miss out on?
Be very businesslike when contacting them. Say something like:
"Thank you for your interest. I am looking to establish an investor relationship for my business and I am in the process of interviewing several investors who have inquired. Rather than go into details over the phone (or letter), I'd like to set up a time to meet with you and talk personally. Would Tuesday at 9:00 AM be good or would Thursday at 2:00 PM be better?"
By asking the last question it gives them the feeling of having a choice, but to you it doesn't matter which they choose. It just means that you have an appointment.
If neither is good for them, they'll offer another time. If the time they want to meet with you isn't good for you, then say "no" and counter offer with another time. This way they realize that you're professional and can take them or leave them. You're someone worth seeing and you have a very good deal for the right person.
DAY#4: Meet With The Investors.
Be prepared to present your deal to the investor in simple language so they'll understand it. This will help to build their confidence in you and-in the deal. Practice what you're going to say; these investors are probably very sharp. You need to cover all the major points and be able to answer their questions.
Be prepared to present your deal to the investor in simple language so they'll understand it. This will help to build their confidence in you and-in the deal. Practice what you're going to say; these investors are probably very sharp. You need to cover all the major points and be able to answer their questions.
Set up the first meeting at a neutral location, some place where neither of you will be interrupted with phone calls or visitors. Make sure that you're presenting to the main decision maker(s). Why waste your time talking to the wrong person or only to some of the right people? You want the people who ULTIMATELY will decide. Be sure that you have enough time to fully explain the business project/proposal and to answer any questions. If it's lunch or dinner, be sure YOU pick up the first check. This Is Very Important.
DAY#4: Give Provocatively Compelling Presentation
The goals of your presentation are:
To get the investor's confidence in the business project/proposal and your ability to manage it.
To make the investment attractive to him.
To prove the possibilities of profit are above average.
After giving your presentation there should be definite visible signs of enthusiastic interest from the investor(s). If you don't sense that there is, then end the meeting right there. You have too many potential investors out there to waste much time trying to convince someone too hard.
If you feel there is enthusiasm, then it's your turn to ask questions.
1. Ask what is his/her/their background?
2. Can they show proof that they have the capital before you both go into serious negotiations?
3. What type of ventures do they like to invest in?
4. What was the last deal they didn't invest in and why?
5. What was the last deal that they did invest in and why?
6. Can they give examples of past deals they've done?
7. Is there any conflict with their present investments and this deal?
The investor(s) will respect you for asking these questions and will understand that you're a responsible business person, the kind they want to do business with and invest money on. If he/she gets annoyed or refuses to answer, end the meeting and go to your next prospect. Forget about people who are just wasting your time.
DAY#5: Keep Meeting, Interviewing And Assessing Prospects Until You Meet the Right Investor
It is just a matter of time before you get the right investor(s) that would buy into your project and be willing to provide all the investment capital you need to achieve you goal.
DAY#6: Sign Agreement with Investors That Buys Into Your Project
DAY#7: Execute contract, get money and start achieving your project or business goal.
If you enjoyed this report, you d like other reports by the author for more ideas to help you achieve your financial goals faster than you ever thought possible. You can download 10 different reports and ebooks written by Dr Godwin King free of charge at http://u-m-x.com
