Article: Your Credibility as an Authority Can Attract Investors When You Need to Raise Capital
by Andrea Reynolds, Copyright 2000 - 2012
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Here's my story...
On an email discussion list for publishers someone asked the question, "How do I secure venture capital for a book publishing project?" Another publisher replied, "Venture capitalists don't usually consider a project unless the financial need is greater than $100,000 or even $500,000." Well, I decided it was time to share my experience with investors who backed my book publishing project with the $25,000 I needed.
In 1986 I wanted to publish my book The Halo Factor: How to Get Attention and Recognition, but like many authors, I was discouraged by many rejections from traditional publishers. My friend, a lawyer, said simply, "Just find investors. How much money do you need?" "Twenty-five thousand." "Easy," he replied, "Sell 25 shares at $1,000 each."
OK! I set about to write the Investor's Background Information and the Offering Memorandum. What really helped me write a successful proposal was that I'd paid my dues over the years by having established myself as an authority. Here's how:
1. By publishing a directory, a few years before, which listed my competitors across the country, the business press and media began to quote me as the spokesperson of my profession.
2. Having generated national and international press coverage, I had clippings from Time Magazine, Success, USA Today, etc., to add to my portfolio.
3. As a result of the press coverage, I was invited to speak at various conferences and meetings and was hired to teach at an "open university" the course that allowed me to test the book's material.
4. The data collected from my students provided specific facts that became my market research, which proved there was a need for the proposed book, and gave me a clear picture of who would buy it.
5. The speaking engagements I was generating were added to my promotional plan. My investors would later love it because having audiences meant having back-of-the-room book sales.
6. Best of all, the press release I wrote for the book project was picked up by the largest talk radio station in the country. I talked about The Halo Factor; about how many of us feel invisible and wish we could have a formula for getting more respect, attention and recognition. And my book offered the formula.
The interview was lively and animated because I was passionate about the book's content. At the end of the 15 minute interview, the host offhandedly asked, "So, you're looking for investors?" Startled, I said simply, "Yes!" and she gave out my phone number on the air.
By the time I got back to my office, my answering machine was filled with messages. Ten of those people bought all 25 units, and friends and family bought five more. With my lawyer's help I put together the Limited Partnership.
I'm not saying it's always this easy, but being recognized as an expert made the difference to investors. Having credibility opened to the door to market research, testimonials from students, promotional opportunities provided by paid speaking, and poise and confidence from addressing groups which I could summon when making a presentation to each investor.
No matter how small, or large, your financial requirement, your investors will have more confidence in your ability to make your venture a success if you have established your credibility as the leading authority in your field or industry prior to making your proposal.
Read more about the three investor documents Andrea developed which actually raised $30,000. Obtain them to use as templates to raise capital for your own venture. Or obtain your copy of Andrea's report: 25 Creative Ways to Raise Capital for your venture ...without bank loans, credit cards, or selling a kidney.
Meeting Planners: Andrea Reynolds is a former marketing strategist for consultants and specialists and is available to conduct an "ATTRACT YOUR OWN "ANGEL INVESTORS" seminar to your members! (814) 520-5548.