I say no to the vast majority of the pitches which come my way, however the few "yeses" really stick out.
Whenever its likely, I tell first-time entrepreneurs to bootstrap their own business ideas. If you would like to be a business owner, create something you can sell as quickly as possible and begin selling. That, or find a preexisting product to flip. In any event, there’s nothing that may replace the in-the-trenches connection with escaping . there and selling to the masses.
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Still, there are specific ideas that may only turn into a reality with investor funding. Or possibly you have something or service that’s humming along, but you’re hoping to accelerate your growth with the insight, mentorship or funding from a business expert.
I am pitched before on a number of different business ideas and said no to the vast majority of them, but some of these "yeses" that exercised have resulted in great opportunities both for the firms I’ve committed to and for me personally. Plus, I started my first few businesses by using my mentor-turned-investor Jim Franco, so I’ve certainly benefited from this type of partnerships myself.
That is why today I would like to offer you my best advice on how best to pitch your business, product, service or idea to skillfully developed, predicated on my experience sitting on both sides of the table.
For starters, recognize that partnerships of any sort certainly are a huge risk. If you are going to start almost any long-term partnership together with your investor, you should be superior on the roles and responsibilities of each party involved.
Actually, in nearly every case I can think about, I would suggest asking your investors/mentors/partners for a one-time loan that you promise to repay with interest. And if indeed they want equity, provide them with enough to get a solid payout, however, not enough where they are able to claim significant ownership.
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By the end of the day, you must protect your situation as the visionary for your business. You can accept help from others but still be the best decision-maker. That’s everything you must do a business owner, and the bigger status or greater available funds of your mentor/investor doesn’t change that.
Don’t allow worries of failure fool you into thinking they’ll be the "man on the white horse" who’ll save your valuable business when things get shaky. That’s your responsibility. Whatever adversities or failures arrive on the path to success are there to instruct you, and you’re robbing yourself of experience unless you charge in and face them yourself.
Have I given you enough of a warning yet? If you are still thinking about pursuing a business expert to be your investor or mentor, recognize that you’re playing the long game. It’s extremely rare for a starting entrepreneur to approach a specialist and win her over with just one single pitch meeting.
Actually, in the event that you do get the opportunity to speak with a specialist, you absolutely shouldn’t lead with a pitch! That may immediately set the tone for a transactional relationship. You do not want that, because there is no way you are able to get out the expert at this time.
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Instead, concentrate on creating a genuine relationship with experts first. Once you obtain attention, ask them ways to help them and do not expect anything in exchange. Better yet, research your facts ahead of time, discover what they want and present that to them before they are able to even require it. That may put you within an entirely different category compared to the a large number of clueless wannabes and beginners who bombard them with pitches each day.
For instance, I had one guy approach me out of nowhere and say, "Hey Bedros, I’m an Instagram growth hacker and I noticed your official Instagram take into account Fit Body TRAINING could use far more followers. In the event that you could give me usage of it, I’ll grow your following free of charge."
Affirmed, he brought us a huge amount of new followers on that account, and today he’s helping us from a number of different paid projects. Because he proved himself first and found me with a giving hand, I’m pleased to keep giving him bigger and better opportunities.
That is a true masterstroke in terms of pitching. When you can show your potential investor or mentor that you curently have an audience of qualified prospects who are wanting to buy, it becomes extremely difficult for them to let you know "no."
Just about the most amazing types of this I’ve ever seen originates from Jesse Itzler, who was simply kind enough to talk about this story on a recently available bout of my podcast. When he was initially creating his concept for Marquis Jet, he and his partners sat down and developed everything they might want from an exclusive jet service and put that right into a business plan. Then, given that they didn’t have any jets and didn’t have the funds to get their own jets, they looked around for who they could pitch this notion to.
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They settled on the "800-pound gorilla," that was Warren Buffet’s NetJets, which had the biggest fleet of private jets on the globe. At the first pitch meeting, the CEO told them "zero way," but his partner came running out after them and told them he’d have them another chance.
At the next pitch meeting, Itzler and his partners earned a focus band of eight customers for Marquis jet, including Run from Run DMC, a specialist athlete, and a robust female real-estate mogul. One at a time, all eight of these stood up and explained why they might never bother investing in a traditional fraction with NetJets, however they would absolutely buy a jet card through Marquis Jets. Itzler and his partners finished up closing the offer and doing several billion dollars running a business before selling the business.
By the end of your day, closing an investor or mentor on your own idea boils down to the same basic need you must answer when selling to a customer or customer: You must create certainty that everything you have to offer will continue to work. There is no better way to create certainty than to provide a dramatic demonstration of proof there before them. Seek out methods to create dramatic demonstrations such as this, and you may attract the people you must build your empire.