|Many entrepreneurs or real estate investors new to the game of raising private capital think that the quality of their deal or business is the key to getting private money. The private investors who read this are smiling, because this attitude is so typical and so far from the truth.|
The truth is that success in raising money from private investors has a lot more to do with you, your team and the relationships you build. It is a process that I incorporate into my GRAD formula (Get Ready, Attract, Deliver).
I want to discuss the “Attract” part of the formula, because unless you are talking to the right people, the best preparation, and best pitch are going to fall on “deaf” ears. And the world of private capital is all about relationships.
Think about it. If someone came to you asking for a $100,000 investment, would you even give them a minute of your time if you didn’t know them and, neither did your colleagues or friends? Not likely.
And most “networking” meetings don’t even deserve that name. Contrary to common practice, the successful networker is Not the one who collects the most business cards. How many people do you think will remember you (or even want to remember you) after a 60 sec interaction which consisted mostly of you pitching your deal or your business to them?
Real networking is about building successful and "mutually beneficial" relationships with people. The questions the successful networker asks when he or she meets someone is
· Who are you?
· How can I serve you?
“Serve” is the operative word. No matter how much you think you know about a person, or his business, or the organizations she belongs to, the only one who can answer the question “how can I serve you?” is the person themselves.
Don’t make assumptions. Don’t try to figure out what you have to gain. Most people want to have personal and business relationships with “givers” not “takers”. Don’t you?
And now, I’d like to ask:
“What networking techniques have been successful for you?”
“How may I serve you?”
Richard Odessey, Ph.D.
For those of you who are interested in raising capital for real estate, I have a useful and free gift for you at http://www.InvestorWealth.com.
If you are an entrepreneur needing to raise capital for your business, I have a useful and free gift for you at http://www.RaisePrivateCapital.com