EndlessJourney
New Contributor
- Joined
- Jun 27, 2015
- Messages
- 8
Rep Bank
$25
$25
User Power: 100%
Hello Fastlane,
This is my second post, and if the responses that I get are anything like the responses that I received on my first Thread, then I will be very happy. So far this forum is the best resource on entrepreneurship advice that I have seen, and so far this is the only place where I can learn and ask questions, without the crowd of course getting antsy and start throwing insults all over the place.
The question that I will ask is in several points. The points are some information that I think may be accurate, and I wish to verify if it is, and the question itself is simple. Firstly, as the title mentions, what is the best, or what are the best methods in order to attract the coveted Investor to help make your business simply run on nitro. I wish to learn how to make investors drool after the pitch, love my idea so much that I can negotiate favorable equity terms (no 80 percent for 20,000 etc.), and hopefully make them drool so much that I can get an even better equity deal.
The idea that was floating in my head is to put myself in an investors shoes. What makes a rich person want to invest? Greed, and the motivation to amass more wealth, philanthropic goals, such as wanting to invest in a company that will help people, and networking, where investors invest into companies who could possibly provide some sort of benefit regarding their own enterprises (rich construction tycoon invests in a lumber/mining enterprise).
So with those 3 general points in mind, what is going to get people to want to fight for the chance to invest in my company? One was an idea that I had regarding the way the pitch is presented. Money and accounting is the language of business, and from looking on Shark Tank (not realistic but it's good pitch research,) and reading stories of entrepreneurs who pitched in front of investors. It seems that investors spend to much time pitching the idea, and how great it is, getting caught in the sweet emotion and love that you have for your idea, to the point the investors are simply falling asleep.
I wanted to be much more direct, and talk in the language that they understand. Firstly, I will mention that I'm not this normal entrepenur who talks about their idea like it's the next stage of human evolution, rather I simply talk numbers. Hello my name is ____, company name is this, and our market is _______
Typical entrepreneur pitch:
This is ToyWorld, and we make the best toys in the world! We make (talks a bunch about each product, every little detail, and makes the investor bored). We will revolutionize and change the lives of children forever (please note I'm NOT hating on the toy market, just wanna make things dramatic). So then the investor asks for the info he cares about, like market, sales so far, and all sorts of accounting information. Then of course, if interested, he makes offers of funding by share of equity.
My approach is slightly different.
Revolutionary? Pitch approach:
Hi my name is ___ and then I introduce the team. Then I surprise everyone and don't even talk about the product. Instead I go straight into the market, talk about how big the market is etc. Get those investors a little excited, as they see the money that is present in this market. Then I talk about numbers, exactly where each cent is going, how we will have extremely efficient accounting practices, have some random information regarding random customers being interviewed on the idea, and what they think about it. This shows that we did our homework, and we checked the idea with the customers in the market that we are hitting, which is BIG for impressing Investors in my eyes. If I was in their shoes, and a entrepreneur is talking all business, how this market shows promise of welcoming my invested company, then I will immediately put that coffee down and glue myself to the presenter. Of course many pitches talk about this, however I want to make sure that the investor knows we are serious. Also, this method of 'speaking the business language' will help wake up the rich investors who are looking to make money, and could care less what the product is as long as their getting those 20X returns on investment.
I will also show an entire plan of market entrance, growth, any planned additional investor stages, and an IPO. As soon as I mention the company goal of an IPO the investors will be even more fired up, because this entrepreneur is aiming for multi-billion Goldman Sachs IPO's, of course the entrepreneur cannot guarantee that this could take place, the plan and the seriousness of the pitch will make the investor more eager to latch on. Finally, the team will mention their goals for doing this, and I was thinking of being rather blunt.
Ladies and Gentlemen, I'm in this in order to make myself money. I am not going to sugarcoat this to you, for your capitalists, and capitalists want to use capital to make more money. It's as simple as that, sharks don't deny their love for meat, why should we deny our love for money. However don't be fooled into thinking I'm going to be a terrible person, no sir/ma’am. I am the servant of the customer, if the customer wants an Eco friendly business, the business will be Eco friendly. If the customer wants cheap, the customer gets cheap, if the customer wants world class quality, the customer get's world class quality. If the customer demands over 100 things, the customer get's those 100 things added to the brand. We will be the most efficient, with the worlds best quality products at the worlds lowest possible price. Innovation is what we do every day, we want the customer's life to be better, and for the customer's wallet to be fuller. Our goal in this organization is to have the customer wake up at 4 in the morning, almost tripping himself/herself on the drive way, and hopefully not getting ticketed as he arrives at our store. We will then introduce a online section, with everything that is available at our stores online, so our beloved customers don't get ticketed, don't get bruised knees and elbows, and because it makes the customer's life better. That's what this company is about. And then you distribute a fat document detailing EXACTLY, how you are going to make all of that ^ happen.
Now this is not poetry, and of course the pitch is going to be different, but the idea remains the same. Speak business, talk about how the investor is going to get rich, distribute a huge document where the investor can be told EXACTLY how he will get rich, and also have you to ask questions. The packet is there as a extra boom effect for credibility, the investor is not going to waste his or his assistants time reading that beautiful document until the entire pitch room is similar to a soccer riot, you want the sharks begging to let them invest in you.
What do you think?
This is my second post, and if the responses that I get are anything like the responses that I received on my first Thread, then I will be very happy. So far this forum is the best resource on entrepreneurship advice that I have seen, and so far this is the only place where I can learn and ask questions, without the crowd of course getting antsy and start throwing insults all over the place.
The question that I will ask is in several points. The points are some information that I think may be accurate, and I wish to verify if it is, and the question itself is simple. Firstly, as the title mentions, what is the best, or what are the best methods in order to attract the coveted Investor to help make your business simply run on nitro. I wish to learn how to make investors drool after the pitch, love my idea so much that I can negotiate favorable equity terms (no 80 percent for 20,000 etc.), and hopefully make them drool so much that I can get an even better equity deal.
The idea that was floating in my head is to put myself in an investors shoes. What makes a rich person want to invest? Greed, and the motivation to amass more wealth, philanthropic goals, such as wanting to invest in a company that will help people, and networking, where investors invest into companies who could possibly provide some sort of benefit regarding their own enterprises (rich construction tycoon invests in a lumber/mining enterprise).
So with those 3 general points in mind, what is going to get people to want to fight for the chance to invest in my company? One was an idea that I had regarding the way the pitch is presented. Money and accounting is the language of business, and from looking on Shark Tank (not realistic but it's good pitch research,) and reading stories of entrepreneurs who pitched in front of investors. It seems that investors spend to much time pitching the idea, and how great it is, getting caught in the sweet emotion and love that you have for your idea, to the point the investors are simply falling asleep.
I wanted to be much more direct, and talk in the language that they understand. Firstly, I will mention that I'm not this normal entrepenur who talks about their idea like it's the next stage of human evolution, rather I simply talk numbers. Hello my name is ____, company name is this, and our market is _______
Typical entrepreneur pitch:
This is ToyWorld, and we make the best toys in the world! We make (talks a bunch about each product, every little detail, and makes the investor bored). We will revolutionize and change the lives of children forever (please note I'm NOT hating on the toy market, just wanna make things dramatic). So then the investor asks for the info he cares about, like market, sales so far, and all sorts of accounting information. Then of course, if interested, he makes offers of funding by share of equity.
My approach is slightly different.
Revolutionary? Pitch approach:
Hi my name is ___ and then I introduce the team. Then I surprise everyone and don't even talk about the product. Instead I go straight into the market, talk about how big the market is etc. Get those investors a little excited, as they see the money that is present in this market. Then I talk about numbers, exactly where each cent is going, how we will have extremely efficient accounting practices, have some random information regarding random customers being interviewed on the idea, and what they think about it. This shows that we did our homework, and we checked the idea with the customers in the market that we are hitting, which is BIG for impressing Investors in my eyes. If I was in their shoes, and a entrepreneur is talking all business, how this market shows promise of welcoming my invested company, then I will immediately put that coffee down and glue myself to the presenter. Of course many pitches talk about this, however I want to make sure that the investor knows we are serious. Also, this method of 'speaking the business language' will help wake up the rich investors who are looking to make money, and could care less what the product is as long as their getting those 20X returns on investment.
I will also show an entire plan of market entrance, growth, any planned additional investor stages, and an IPO. As soon as I mention the company goal of an IPO the investors will be even more fired up, because this entrepreneur is aiming for multi-billion Goldman Sachs IPO's, of course the entrepreneur cannot guarantee that this could take place, the plan and the seriousness of the pitch will make the investor more eager to latch on. Finally, the team will mention their goals for doing this, and I was thinking of being rather blunt.
Ladies and Gentlemen, I'm in this in order to make myself money. I am not going to sugarcoat this to you, for your capitalists, and capitalists want to use capital to make more money. It's as simple as that, sharks don't deny their love for meat, why should we deny our love for money. However don't be fooled into thinking I'm going to be a terrible person, no sir/ma’am. I am the servant of the customer, if the customer wants an Eco friendly business, the business will be Eco friendly. If the customer wants cheap, the customer gets cheap, if the customer wants world class quality, the customer get's world class quality. If the customer demands over 100 things, the customer get's those 100 things added to the brand. We will be the most efficient, with the worlds best quality products at the worlds lowest possible price. Innovation is what we do every day, we want the customer's life to be better, and for the customer's wallet to be fuller. Our goal in this organization is to have the customer wake up at 4 in the morning, almost tripping himself/herself on the drive way, and hopefully not getting ticketed as he arrives at our store. We will then introduce a online section, with everything that is available at our stores online, so our beloved customers don't get ticketed, don't get bruised knees and elbows, and because it makes the customer's life better. That's what this company is about. And then you distribute a fat document detailing EXACTLY, how you are going to make all of that ^ happen.
Now this is not poetry, and of course the pitch is going to be different, but the idea remains the same. Speak business, talk about how the investor is going to get rich, distribute a huge document where the investor can be told EXACTLY how he will get rich, and also have you to ask questions. The packet is there as a extra boom effect for credibility, the investor is not going to waste his or his assistants time reading that beautiful document until the entire pitch room is similar to a soccer riot, you want the sharks begging to let them invest in you.
What do you think?
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
