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In my practice, I meet w th many entrepreneurs. Listening to their st ries is a poignant reminder about j st how difficult it can be to f nd the investment money they need to gr w their businesses. Many often ask me bout the best ways to raise m ney for their businesses. Believe it or n t, often times my answer begins w th a story about my dating l fe. It goes something like this: Alth ugh I was not blessed with Br d Pitt’s good looks or the b st conversation skills, thankfully, I did c tch the height gene and measure in at bout 6 feet, 2 inches. Now, by M dwest standards, this is no significant th ng, but in New York City, for wh tever reason, it was one way to d fferentiate myself from many of the ther guys in the singles scene. So, wh n I went to parties or out w th friends, instead of competing with very other guy for the attention of the s me group of women, I would try to m et the women who were taller th n most of the men in the r om. Knowing my dating limitations, I pl yed the odds that were most f vorable for me. For me, the str tegy was a success. Last year in N vember, I married a 6-foot tall br lliant and beautiful woman! Finding the nvestment money you need to grow y ur business is not that much d fferent than my dating story (albeit, m ybe a little less fun). To be s ccessful, you first have to put y urself out there and meet a lot of p ople. But, then, and perhaps most mportantly, if you are aware of y ur company's limitations and you focus y ur efforts on the funding strategies wh re you have the greatest odds for s ccess, you will find more money, f ster and with less effort.
For some of you who w ll have immediate positive cash flow and ssets you can afford to use as c llateral, a bank loan may be the b st, and certainly the fastest, way to get st rted. For those of you who h ve a business model that is sc lable into the 9-figure range, with pr ncipals who have prior entrepreneurial success, nd/or businesses in the latest hot ndustry, VCs or angel groups may be a v able option. For the rest of you (wh incidentally represent 99% of the p ople who come through my office d ors), serious consideration should be given to f nding a Joint Venture Partner or xecuting an "extended" friends & family pr vate offering-at least to give yourself nough time to grow the business to a l vel where you can more seriously c nsider one of the other two f nding options. One more thing. When I was s ngle, I did not date tall w men exclusively. If a shorter woman c me my way, I obviously would not t rn her down for a date! It is the s me situation with pursuing a funding str tegy. Just because you focus your fforts on one funding strategy, like s eking a Joint Venture partner, doesn't m an that if you meet a VC who ffers you an opportunity to pitch y ur story you should not take it! The p int is, you will ultimately have m re success if you concentrate the m jority of your efforts on one f cused strategy. Remember, efforts directed towards l oking for investment money will be t me spent away from doing what you do b st: growing your business and achieving y ur financial goals. You need to be b th strategic and realistic about it. The dea is to pursue the strategy wh re you will have the greatest dds for success. To receive your fr e copy of the Target Investor Inv ntory, a powerful tool to help you r pidly discover potential investors within your pr fessional network, contact me at: sfurnari@furnarilevine.com.
Copyright 2006 Stephen Furnari
The article Finding Your Match - The Art of Meeting the Right Investors was Submitted by Stephen Furnari through Articles.GetACoder.com network. Here's the additional information: Stephen Furnari is a securities ttorney with Furnari Levine LLP ( http://www.furnarilevine.com ). Stephen helps young and growing companies obtain the funds they need to grow their businesses and accomplish their financial goals. He also teaches entrepreneurs how to avoid costly and avoidable legal mistakes. To find out how Furnari Levine can help you, email Stephen at sfurnari@furnarilevine.com
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