How to Make it in America? Lesson 3

Getting an Investor!

business man with a dollar symbol

Every time someone comes in to my office with a new business idea the first thing they ask is “How do I get an investor?” and my first response is why? Most people have this idea that when you start a business you immediately need an investor to front all the expenses so that you don’t have all the financial risks.  I think that is the wrong approach, instead I am a believer that you must first exhaust all of your personal finances & resources to start and grow your business before you go and ask for money.  If you aren’t willing to risk all of your own money on your business, why should anyone else? That is why it is so important to start your business when you are still young, so you can take on risks & more importantly you are not accustomed to a lifestyle that you are trying to maintain. 

I always tell people that when you are in your most dire straits in your business, a white knight will come in save the day, if and only if you have put in the work and displayed a level of passion that demonstrates you will go to any lengths to succeed. At the end of the day investors do not invest in ideas or businesses they invest in PEOPLE, because great people develop great businesses.  As important as a business plan is to an investor, I think that you can tell with an a minute if an entrepreneur is willing to go to war for his/her business and that for me would be why someone will invest in a small business.  We have had to raise money on several occasions, and I don’t think our business plan raised the money, rather it was our dedication to the business and the willingness to go that extra distance to make this business work.

Good luck!

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