Sunday, December 6, 2009

Know your Audience

I receive investment opportunities via email and especially through Linkedin everyday. I would say that 90% of the people asking me for money didn't take 5 minutes to read my profile or do any research on my firm at all before they asked me to help them.

The number one offense in asking for money is to approach someone about an opportunity they clearly have told you they do not want. All one has to do is usually google a firm or managing partner's name to find their profile on Linkedin or their own website.

If you are raising capital for renewable energy or films, and you approach a firm that exclusively funds high tech or real estate, you not only will most likely receive no response, but you will be mentally noted as someone who does not know what they are doing. Almost every investor I know has an elephantine memory for the names of those that approached them with bad ideas, wrong ideas, or inept presentations.

Never spam on business sites like Linkedin. You will be remembered by the few people on Earth who might have the money to fund your deal as someone they do not want to do business with. I've had fund managers remember me from 5 minute phone conversations or emails going back 7 years and they base their time and interest in me on that phone call or email.

My positive advice to you is to always research your prospect or company. The more homework you do, the more likely you will be successful today and the less likely you will close a door that could have been open in someone who could help you in the future.

To your Wealth!

Russell Roesner

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