“The successful man is the one who finds out what is the matter with his business before his competitors do.” – Roy L. Smith
The Tempting Path of Finders: When embarking on the journey of raising capital, the allure of finders who promise to connect you with investors might seem appealing. However, it’s crucial to navigate this path with caution and a discerning eye.
“The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things.” – Ronald Reagan
Understanding the Finder Phenomenon: Finders are individuals who claim they can introduce you to potential investors. Yet, it’s essential to be aware that the credibility and influence of many finders may be questionable. The underlying principle is simple: if someone receives payment for an introduction, their credibility can become compromised due to a conflict of interest.
Deciphering Warm Referrals: Warm referrals, on the other hand, stem from authentic connections. They are recommendations that arise from genuine confidence in both you and your business idea. These referrals are often based on personal relationships, trust, and a belief in the potential success of your venture.
“Success is walking from failure to failure with no loss of enthusiasm.” – Winston Churchill
The Pitfalls of Monetary Gains: It’s important to consider the motivation behind a finder’s promise. When money enters the equation, the incentive for the finder to make a successful match might shift. Their primary focus may no longer be on aligning your venture with the right investor, but rather on securing their own financial gain.
“To succeed in business, you need to be connected.” – Richard Branson
The Importance of Genuine Connections: Building a network of genuine connections and warm referrals is a cornerstone of successful business endeavors. True connections are based on trust, mutual benefit, and shared interests. When seeking investors, tapping into your network and leveraging authentic relationships can yield more fruitful results.
“The secret of change is to focus all your energy not on fighting the old but on building the new.” – Socrates
The Value of Personal Relationships: Raising capital is a multifaceted endeavor that extends beyond financial transactions. Building personal relationships with potential investors often plays a pivotal role. A warm introduction from someone with a solid reputation can significantly enhance your credibility and increase the likelihood of investor interest.
Growth & Scaling Workshop Series for $1M+ Company CEOs – Learn How the Top 5% of Entrepreneurs Succeed at Influencing $10M, $50M and $100M+ When Only 1 in 400 Companies Reaches $10M in Sales, and 1 in 6,300 Reach $100M
Bob Norton is a long-time Serial Entrepreneur, CEO and investor who founded six companies with four exits that returned over $1 billion to investors for a 25X ROI. Two others are still in development. He has trained, consulted and advised thousands of Entrepreneurs, CEOs and boards since 2002. ™. Mr. Norton works with companies to 2X to 10X growth rates and valuation using AirTight Management™, the world’s most comprehensive Leadership Operating System™. He also helps companies raise capital to fund growth. He is also the Founder of The CEO Boot Camp™ and Entrepreneurship University for early-stage companies that have not reached product-market fit and $1M ARR.
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