Today, more than ever, your own network is the key to successfully fund your business.
You may be reading that statement and think, “Well, what do I do when my network is not very big? I have friends and family, but not those kinds of friends and family.”
A New York Times article revealed that the average American person has at least 600 people in their network. That’s not a small number!
If you are reading this article, I would be willing to bet that you are among the average. You may have a network that is a lot bigger.
Earlier this year, I started working with two talented entrepreneurs who run a fantastic adult sleep-away camp called Soul Camp. Upon the start of our collaboration, they were contacted by Google to investigate in incubating their business. I was thrilled!
The cost to be incubated by Google comes with a high ad spend requirement. These founders needed some extra capital to cover these costs, but they did not think that they had a strong network to secure the funding.
I was not convinced. So, I immediately walked them through my Sx6 Finding Investors Formula and developed a sound strategy for them that made sense. We tapped straight into their network and got them funded in under 60 days.
Start The Discovery Process
First, create a spreadsheet of a list of all your family members, friends, former colleagues, and anyone else who knows you and likes you.
Stress creeping in at the thought of reaching out? Do not worry! The point is not to directly ask these folks to invest in your business. Instead, you are going to shift your mindset and enlist these people as your tribe of fundraisers. Think of it as an opportunity to reconnect and share the excitement of your venture. If you are embarrassed about it, then you may need to rethink it altogether.
Otherwise, engage that enthusiasm and make it your goal to have a phone conversation with everyone on your list. DO NOT DO THIS BY EMAIL! Email does not allow for two very important things:
- Enlisting your tribe means that you need to show them that you care first. A phone conversation allows for you to explore how you can help them with one specific thing. That thing could be as simple as an introduction, a link to an article, etc. This is a critical step in your fundraising process.
Yes! It requires effort on your part. You are running a business. Don’t have a lot of time? I get it!
Although, unless you have months or years to wait to get funded or have unlimited word-of-mouth advertising, you must take the time to have these conversations with your network.
This work will build the army of brand ambassadors who tell everyone they know about your business and connect you with people who are interested in funding you.
Alternatively, maybe someone in your network will seize the opportunity to immediately invest in you. Regardless of the outcome, this work will not cost anything, a call and a few acts of generosity. The ROI of your time is well worth it!
- During this phone conversation, you are going to ask one very important question. “Who do you know that might be interested in meeting with me to learn more about this opportunity?”
After asking the question, pause and wait for the response. Let them mention two or three people that they know and make it easy for them to help you.
Provide them with the exact email template to copy and paste to send to their recommended people.
By having a pre-crafted email and sending it either during the conversation or within minutes after, you are increasing the likelihood of the connection happening–because you’ve made the task almost effortless.
You may not have phone numbers for every person on your list. Although, get resourceful and use things like LinkedIn to figure out how to get them on the phone. If you are persistent, I promise that you will be amazed at the results.
Put Fear Aside
Fear gets in the way of you going big. It stunts curiosity. When you are afraid, you do not ask the important questions that will get you funded in a matter of weeks.
More importantly, fear keeps you from tapping into your connections of potential supporters.
As a result, you could be leaving your ideal investor ignorant of your need for funds. Since you are only six degrees of separation from your ideal investor, you could be missing out on connecting to an influential person. Maybe someone like Mark Cuban or Marcus Lemonis. You will never know.
Conversely, by reaching out to those connections, you are empowering yourself to do big things in the world.
Securing the right funding sources will enable your business to have the kind of impact that positively affects the lives of everyone in your network and beyond.
Believe In Possibilities
Making connections and growing your network is not a standalone action for success. It is part of a larger process that starts with believing that anything is possible. Confidently tapping into your network is key!
The authors of The Confidence Code say it well, “Confidence is life’s enabler. It is the quality that turns thoughts into action. Confidence does require a choice: less worrying about people-pleasing and perfection and more action, risk taking, and fast failure.”
Be your own hero. Take action. Both require preparation. Here is a list of ten questions that every savvy investor will ask you. Boost your confidence by preparing yourself to know the answers to each of them.
Remember, fear cannot live in inspired action. So, do what it takes to identify and tap into your connections. At that point, you will find yourself moving forward in a big way.
This article originally appeared on The Huffington Post.
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Photo credit: Pixabay