"Is that it?"
Those aren't the words you want to hear after you've just made your private money "pitch." The words you want to hear are (in order)
* Can I write you a check right now?
* Is there any way you could take more money and invest it for me?
* Would it be Ok if I told some of my friends about you who are looking for this type thing and have money to invest?
If you want to hear those three questions (or similar ones) and not "is that it?" or "what else do you have?" then this will be an important message. You see, most people, for whatever reason, don't "leave it all on the field" in any aspect of their lives - let alone their businesses.
A long time ago, my football coach used to tell us that we had to "leave everything on the field." Before each game, he would get us pumped up. We were prepared. The game plan was in place...but he always took the time to tell us that we had only once chance to play this game because we had one life and that we must leave every ounce of energy, passion, enthusiasm and drop of willpower out on the field. In other words...
"Don't hold anything in reserve, boys"
At the time, this message didn't sink in much. I played as hard as I could. We won some games. Lost some games. It was fun. But it wasn't until years later that it sunk into my brain what the coaches were trying to teach us. It wasn't until I was sitting in front of a potential private investor one day and, at the end of my 'pitch', got a "is that all?" response.
Why did I get this response?
Again, I was a slow learner. At the time, I didn't know what I had done wrong. So, I stupidly told the potential investor that "yes, that's about it" and we then parted ways. Never to see each other again. A few months later, I was really in need of some private money. The banks had pretty much shut me out and my lines of credit were gone. I absolutely could not leave the meeting with this investor without a commitment to invest. Near the end of my presentation, I was again asked the question: "what else is there?"
This time I replied: "well, there are a few more details to go through, but I need to know your level of interest before we go further. Are you indeed interested in placing funds with me on this deal?"
To which they replied "yes."
I then continued the meeting. I got the investment. Maybe you think the difference is very subtle here - but it's not. It's substantial. Like the Grand Canyon. Here's why...
You can never assume that you'll have another shot with a private investor when you sit down with them (or present to a group of investors). Therefore you must treat the meeting like it may be the last one you'll get. Don't leave anything out. Throw all your preparation, knowledge and enthusiasm on the table. The first time I was asked "is that all?" I just figured that I wouldn't push it and just schedule another meeting. That "other meeting" never happened. Most of the time they never do.
You must make every attempt to close the deal with the investor the first time you have a formal meeting with them. Never assume you'll get another chance.
Don't leave out any facts, figures, and emotional appeals. Put everything into it. As I said before, most people lead lives where they always have a 'reserve' - they never empty their tank and go after something with an abandon. There's always a little hesitancy to not push all your chips into the pot. Believe me, when it comes to private money, this is a mistake.
Make your best argument. Put your best foot forward. Leave every ounce of your will on the table with the investor. Don't come across as desperate or needy, but enthusiastic, confident and thorough will win you far more deals than any other approach.
-Happy Investing
Those aren't the words you want to hear after you've just made your private money "pitch." The words you want to hear are (in order)
* Can I write you a check right now?
* Is there any way you could take more money and invest it for me?
* Would it be Ok if I told some of my friends about you who are looking for this type thing and have money to invest?
If you want to hear those three questions (or similar ones) and not "is that it?" or "what else do you have?" then this will be an important message. You see, most people, for whatever reason, don't "leave it all on the field" in any aspect of their lives - let alone their businesses.
A long time ago, my football coach used to tell us that we had to "leave everything on the field." Before each game, he would get us pumped up. We were prepared. The game plan was in place...but he always took the time to tell us that we had only once chance to play this game because we had one life and that we must leave every ounce of energy, passion, enthusiasm and drop of willpower out on the field. In other words...
"Don't hold anything in reserve, boys"
At the time, this message didn't sink in much. I played as hard as I could. We won some games. Lost some games. It was fun. But it wasn't until years later that it sunk into my brain what the coaches were trying to teach us. It wasn't until I was sitting in front of a potential private investor one day and, at the end of my 'pitch', got a "is that all?" response.
Why did I get this response?
Again, I was a slow learner. At the time, I didn't know what I had done wrong. So, I stupidly told the potential investor that "yes, that's about it" and we then parted ways. Never to see each other again. A few months later, I was really in need of some private money. The banks had pretty much shut me out and my lines of credit were gone. I absolutely could not leave the meeting with this investor without a commitment to invest. Near the end of my presentation, I was again asked the question: "what else is there?"
This time I replied: "well, there are a few more details to go through, but I need to know your level of interest before we go further. Are you indeed interested in placing funds with me on this deal?"
To which they replied "yes."
I then continued the meeting. I got the investment. Maybe you think the difference is very subtle here - but it's not. It's substantial. Like the Grand Canyon. Here's why...
You can never assume that you'll have another shot with a private investor when you sit down with them (or present to a group of investors). Therefore you must treat the meeting like it may be the last one you'll get. Don't leave anything out. Throw all your preparation, knowledge and enthusiasm on the table. The first time I was asked "is that all?" I just figured that I wouldn't push it and just schedule another meeting. That "other meeting" never happened. Most of the time they never do.
You must make every attempt to close the deal with the investor the first time you have a formal meeting with them. Never assume you'll get another chance.
Don't leave out any facts, figures, and emotional appeals. Put everything into it. As I said before, most people lead lives where they always have a 'reserve' - they never empty their tank and go after something with an abandon. There's always a little hesitancy to not push all your chips into the pot. Believe me, when it comes to private money, this is a mistake.
Make your best argument. Put your best foot forward. Leave every ounce of your will on the table with the investor. Don't come across as desperate or needy, but enthusiastic, confident and thorough will win you far more deals than any other approach.
-Happy Investing
SHARE
