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Yeah, I think people tend to avoid rejection in general life, even with a dating, you know, dating could be anything, but especially, of course, within the partnership, if you can if you can avoid rejection. People would try to go for a job or try to work many of their people working remotely or freelancers. It’s some are, you know, entrepreneurial, but many others they just like the fact of, you know, the only media. And yeah, and people do take that that it will block them. In many cases, the rejection factor. And I think in this episode where I talk about a lot about rejection. Because we haven’t talked about fundraising later and so on. But, yeah, it’s important to learn from your mistakes. But I think it’s also important to learn from someone else’s mistakes so you don’t do the same mistakes. So which can be translated to do your research. Yeah. So. So you try to avoid you know, it takes some mistakes. Could be costly. Oh yeah. Money wise. Relationships wise or time wise. So. So yeah. It’s important to learn. But that’s why we always encourage people to go for the Lean Start-Up approach. Just learn by doing but also fail quickly and softly. So yeah, it’s.
That’s why I would say I’d recommend and also if you fail many times but not too much or not too deep, you will get used to it and you will see that’s a necessary tool for growth. Rather, Donna, as a satellite. Shamim thing. Because if you really learn out of that and then you, you wont have any shame compared to others, because ultimately it’s your confidence. You’re always benchmarking, you know, with the people you grew up with, the people you studied with your neighbours. Yeah. Always. You know, if you if you wanted to or not, you’re trying are comparing to to to your environment or to to your roots as well.
I think you should avoid that a saying it’s fine because being competitive race is a potential, you know, force of growth.
But you should really think on you how to get better at it. So it’s an entrepreneurial mindset or or lifestyle is many times very solitary. So so you shoot compared to yourself on how you can do better and therefore. Yeah. So don’t be ashamed and learn a skill.
Jessica. Yeah, I think one slightly related kind of topic to this sort of like idea of sort of failure and learning is I think you’re right in terms of like treating failure softly or looking for soft failures or soft mistakes or soft learning opportunities. Because you’re right, like the you so deep rooted psychological thing is like, you know, there’s fear and anger and all these other sort of like negative emotions that even if you also have very some rational person can still sort of like kick off and cause you a lot of mental anguish. So trying to find ways of like following this path, but not by making sure that the sort of mental side of it is a little bit better. One approach that I found in the past that has been quite useful for that is having. The way you measure your performance over time is quite important. And I like the way that you plan. So as an entrepreneur. You know, it’s on you. As to how you plan out what it is that you’re going to do and how you measure your performance and how you measure your business’s performance along the way. So there are really obvious things like, you know, monetary milestones and your PNL and things like that. But when it comes to light tasks and things like that, I found that a very good framework to looking at this thing is by having process related measurements and goals rather than outcome related measurements and goals. Meaning so an outcome related goal is, for example, I want to make one million dollars. Or this company’s gonna make one million dollars this year. That’s our goal for the year. And you either succeed or fail. Right. And one way in which that is kind of like can be so draining is the fact that until you hit that point, you are in a state of failure. Right. Until you reach a million dollars, you are failing. And if you don’t reach a million dollars and you reach nine hundred and ninety thousand dollars, then technically you still failed. Right. Whereas if you have process goals and process measurements, then you use the goal as a way of building your systems and tasks and then measure yourself against progress or measure yourself against your work on those tasks. For example, if it’s like, okay, we need to make a million dollars, so that needs to be 10 sales of one hundred thousand dollars. In order to get one sale, we need to do like 10 phone calls and two in-person meetings and et cetera, et cetera, et cetera, all the things that go into the sales process. And you then measure yourself on your efforts in the sales price. So it’s like, did we find enough to able to book 10 sales calls? Did we have enough conversations to convert two of them into an in-person thing? Did we have all of the marketing collateral in place ready to do the thing? And by measuring yourself on things which are directly under your control, i.e. you can, it’s up to you whether you make that phone call sale cycle. And, you know, just by pick up firing, you can succeed in that process that then that leads you into a far better sort of way of measuring things because it’s under your direct active control rather than being some eventual outcome of all the things that you do along the way. We got to run.
I think it’s very interesting and just it’s always useful to have a framework, you know, that it’s it’s more down to earth. And also you can measure progress in different stages. But I think that goal is important because he said Ultimate would do anything you want. And I disagree with. Maybe I’m wrong for sure. I mean, most likely Umbro. But I like saying silly things like I think looks like. But but then I think the goal is important. Many, many Silicon Valley gurus would say, oh, don’t worry about money. Just do what you love and money would follow. I disagree with that. I think you should set goals you want, even if they are economic. Those personal development goals should count currently. But with that said, I’m coming back to your structures and processes in place. So what I think is your goals.
But don’t let the goals ruin a company or a venture you’re doing or our relationship. So, for example, if your goal is to make one million dollars per year, let’s say your company or at the personal level doesn’t matter. But the point being, if the company is not hitting that target and you are actually optimising, you have the measurement from the processes to realise that actually you are doing pretty well. And it’s kind of very efficient and probably it will scale, but not that much. So then you should not push that company towards a goal that it cannot reach.
Maybe just leave that company, RCD and start another company or another venture that can either complemented or just tried to exit that business or try to delegate more. And then the business was to flourish. But maybe without you. So there are options always with a goal. The end game or the goal of the north, you hook up long term goals as well. For sure. So you should move in the other direction and not push, you know, companies or products to meet your goals. Because then you may fail big as well. So, yeah, I think that’s another piece of advice or personal advice on how I see those fly. They do at least come on line short long term dynamic strategies. Goals. Yeah. It’s important to measure with. And if you don’t get the goals because of any reason, start something else and you can definitely run things simultaneously, there are ever growing examples of that many entrepreneurs. I mean, many companies and many of those companies very successful. So, yeah, you need to be focussed, but you can also build teams and not be you know, they’re 70 percent donor or whatever. But you got have a lot of influence being 10 percent on. So but many businesses as well. And if those businesses can complement. That’s great. Or if you can liberate resources, then yes, I think you have more options as well. And what what when you have more options, you will also have more information, more resources. You would think differently. And you have a safety net as well. You’ve got more options. And if you fail, then it’s OK because you’ve got something else going on.
Yeah, you mentioned there the Silicon Valley mindset. The next topic that we wanted to talk about today is quite a thorny topic and people tend to have sort of fairly strong opinions on it. And that’s not to say that anyone is correct or incorrect. But that is the topic of bootstrapping your business vs. raising money for your business and going down the sort of venture capital route. And. I have experience both of those things in the past. And I think that I I don’t really have a strong opinion in terms of which one is better, but I do have a fairly strong opinion in terms of I think that the context matters a lot. And the context in this case is both you and your own personal kind of contact, where you are in your life, where you are in your family life. How you doing financially? All those kind of things. And also the context of the actual business of the thing is that you’re trying to stop because by its very nature, some business models lend themselves better to a big shopping model and some than themselves better to money raising model, you know. So the day we’re recording this eighth, October 2020, boom, aerospace just rolled out there, sort of first prototype supersonic airliner jet model thing. And that is the sort of business that you are going to struggle to bootstrap unless you are already Elon Musk or Jeff Bezos. So not that it’s not the sort of business where you could dip into your pocket and sort of keep the funds, the costs of building supersonic airliners. You know, even the extremely large companies will struggle to sort of finance that kind of thing. And so obviously, the context of the business model that is very much dependent upon these those kind of moonshot opportunities, as the name suggests, will require a lot of money, a lot of capital. And so that’s a money raising kind of raising money is gonna be important as part of the operation of that business. I think also the. It also comes down to your personal aspirations as an owner of the business, so exactly like you were just saying about, you know, how much of the business that you own and you know, how big that business is, how many other employees it has, the size, the team and things like that.
One important thing to bear in mind is, you know, Europe, see, you’re probably building a business because of it, because you’re interested in it, but also because of the monetary benefit that it will bring to you either now or in future. And there’s a difference between the asset value of the thing that you’re building. In other words, like if you were able to sell it, how much could you sell it for? And, you know, they may be so down the line, one big exit thing and you make all your money and one big chunk because this thing you built is really valuable and someone’s willing to pay millions and millions of dollars for it. And then you got the money in the bank in your set. And then the other one is a cash flow asset, which is, you know, something that you own and that you intend to keep owning and that it throws off free cash flow in other otherwise, you know, it’s a profitable enterprise. There’s money left over in the business. After all, the costs never have been paid or the bonuses have gone over, et cetera. And so that comes back to you and it’s up to you as to what you want to do that with you.
Reinvest it. We’ll do whatever. And again, certain business models lend themselves better to being asset style businesses versus being cash rest businesses and how that appeals to you. Now, it’s much better to shop a cash flow business because the more of that business that you can own and if you’ll be shopping, then you’ll tend to retain the majority ownership of that small business because you’re reinvesting the business’s money as you’re investing your own money in the first place. In other and then all of the cash flow will net to you because you can be the majority. Whereas when you raise money, then you’ll diluting at every stage. And what you’re doing is you’re sort of putting off the cash flow portion or business model or personal income model and putting it all into the asset bucket. And then the idea is, is that the more money you raise in the bay, you can grow it. Then the whole pie gets much bigger for everyone. So your slice is worth less. That significantly. Much more. I, I enjoy working on a number of projects a time. Which isn’t necessarily the best thing to do for certain classes of business. And so I think it lends itself slightly better for me personally and what I like doing to having more of a cash flow, bootstrap style business than it does for a sort of venture backed moonshots style business. But it just so happens to be my context at this point in my life. How about you? What what are your thoughts around bootstrapping this is raising money in the context of that?
Yes, I think you don’t unless very unique, you know, capital intensive industrial businesses, you don’t need money to get started. So, yeah, that even if you’re an entrepreneur and saying, you know, in your city there are no invest or saw in your country because of that, it’s hard to start companies. That’s most likely an excuse. And you should get away from it. So definitely you should sweat equity. Now, there are many ways to sweat equity. You can help sometimes with a very small investment. But you see that investment is not going to change is all that you pay for the founder’s salary.
So so you still need to sweat equity. So I think you will always need to sweat equity. So you have something to show that it becomes potentially investable. And you should also understand that investors usually want a pretty high return for an equity investment because it’s way more riskier than investing in many other options they have. So it’s not that they are shopping around where to put their money for moonshots.
It’s you really need to it’s it’s hard job to raise money. Probably a full time job. In many cases. The investor would like to make like a 10x at least on their investment. So that means that there the whole company would at least need to grow 10 times for Kim to be satisfied. So that’s. So you’re setting expectations are very high. You should have a scalable business. And you should in many cases, you will end up having a boss buy on board and investors. So so you should really think about that, about all those dynamics. Sometimes it’s better to bootstrap, as you said, and sell it as a way of getting cash. Maybe you are not be a millionaire, but but you’ve got to have some cash and start something else with that. And so a way of making your own incubation strategy. But, yeah, I think it’s important. Ellery’s, it’s always good to have experience in both cases. I certainly did. I found. But at least personally, harder to build unless you’re like an engineer. Prolly I would say yes ma’am. Or you found like a neat marketing niche which is coming in, becoming increasingly harder than is hard to automate businesses that provide some cash flow where you don’t need to be on top of it. So what tends to happen instead is if you own all leg with your majority supermajority, then it’s more like a service business or a family business or something like that, which does need you to be around full time. So then you are capped by it is more like slow growth, but probably more steady growth. So if if that business if you can build a family business or a personal business that God, you know, pay your bills on creates a good lifetime for you. Even if you need to work full time, then you are in control. You are fine. I think you are doing great, probably. And you can I’ll do my part to feed or dedicate some, you know, work part time that could be, you know, a very comfortable situation. So, yeah, some but not all businesses need to be like billion and there aren’t. And you should understand that that’s very, very minority of businesses. You enough fund funded businesses are like a fraction of the market out of them. The ones who end up being very successful are a fraction of those, which I mean, you shouldn’t do the maths when you are going to start a company because it’s always the all time against you, always like it’s contrarily.
But yeah, it’s more about the dynamics. You shoot what when you are. It’s like when getting married, you should try to make sure you are doing the right thing because this will be a long right.
But if you find a great investor sign and you need you can put that my also when you’re raising money, you should think why? Do you need the money for. How that will multiply your growth and your equity as well? So why what are you going to do that, you know, use of funds or use of proceeds? So what are you going to do with that money?
We’ll take you to at least two, three, four or five X growth. Yes. So lay out proper business plan properly. Think about all the consequences, not just monetary, but it will change your lifestyle. Decent savings for sure.
Yeah, absolutely. Although my preference is a light boot shop, cash, lifestyle, businesses. That’s not to say that I’m not interested in businesses where you also need to raise investment.
And, you know, we raise investment at the moment. So I would be a hypocrite if I was to say otherwise. And I think and also it’s a sliding scale. Right. So we’ve said bootstrapping best is raising money, as if, you know, one thing is you never raise any money. The other thing is you raise a billion dollars or nothing. This is a big continuum between that and. Yes, same as almost all topics. As you know, it’s not black or white. It’s very, very grey. And it’s it’s a fuzzy line.
But I think it’s important that you kind of understand what the trade-offs are with some of those things. And I think you’ve got to straighten some of those quite well. And like, where you sit on that spectrum can be, you know, you can choose where you want to that spectrum based upon your sort of, like, risk appetite. What is that you want out the business, whether you can forego sort of the market level income for four or five years until you actually get, you know, your exit or whatever it might be where the money comes in a lump sum or whether you actually need for whatever reason, for life reasons, you know, a better income earlier dependent upon family dependent bundle those kind of things. So our final topic, which is related is tips and ideas. So how about you actually go about raising money? So, yeah, I’ve been involved with businesses in the past where we’ve raised money.
I must admit, my kind of roles in those businesses have tended to be more on the technical side of things. And so although I’ve had some participation, I get wheeled out occasionally to sit in front of potential investors and say, hey, look, it’s the technical guy who can talk smart. I have had less of the experience of actually sort of going in and finding these potential investors upfront.
And I know that, you know, in the few times that I’ve been involved in the fundraising process, it can be very depending upon how desirable you are as a an investment date that can go either really easy and seemingly or it can be a really hard, long slog away. You’re kind of going grinding and grinding and grinding. We talk the other week about pilots who had to go through three thousand people to find their angel investor investors to start their business. So you have been involved far more on the sort of the business end of the money raising side of things. What what are your thoughts around so tip? So all things look out for when you actually sort of trying to raise money.
Yeah, well, there’s not like an on an order. Things usually are very, you know, different depending on the industry stage. But I would just throw stuff on you, pick what you want. So I would say you initially early stage, you should raise us as little as possible and sweat as much equity as possible. Certainly you don’t need as much initial delayed as much as possible. All the fun, all the rounds. DeLay, delay, delay. Tried to initial you raise equity, but down the road you may consider debt. So if you have a cash flow, cheap debt, maybe that’s good, but you should be a mind and be careful because usually debt holders can take control of your company. So you may have like, raised seven, ten millions or whatever on just one million that. And if you don’t paid, they can take control.
So yeah, but so it has more weight over usually their articles or shareholder agreements or just the companies act themself unstuff would be. Now of course there are very complicated structures that would dull conditions here and there. And if you start doing preferred shares, these are not so or senior loans. And so we are not going to get into that. But then also, as you said, it’s a dating game.
So if you want to raise money, you need. First of all, do our research on who is you should understand for sure. What’s your industry and how not only what’s your industry about? What’s your niche and how?
What’s their legacy? Let’s say the terminology that investors would like venture capitalists look for went and went when investing in that industry. You know, you shouldn’t be too specific about these. Should be like, you know, nowadays they take at the end of every single industry, they say like prop techs for property, tech or edtech for education to go fintech or or finance tech or. Biotech insert you no new, let me say so, like all aggro tag anything, but even if you’re not in a tech recess, you will be. It could be, you know, renewable energy or whatever. So ideally, if you want to increase your odds, you should. Definitely should. Now, your industry, the problem solving and your solution. OK. So you should have a differentiation buying site or competitive advantage. So that’s the very basic. You should also have our team. At least you should be too. Because they don’t they want to invest in just one guy is too risky for that key man raised. You know what? Something happened. So this guy will lose all or money. So that’s not going to work. So, yeah, you need to have a team. But it doesn’t matter which one you do first. But you should do these two before approach investors, which is do your research. So I understand the terminology and what they are. Look, once you understand your industry, your terminology, you should see what’s on trend within your industry. Then the problem, the solution, and then go search for the investors that are investing in that industry in your country because investors, like their founders to be in the same city, acted not sex and country. Better not. I mean, it’s important, but same cities better. So. So you look for investors in your country and your industry and at your stage. So it should be like seed is like very early stage or here’s a bee or that you will cheque their ticket sizes there. So you build at least you can approach them on LinkedIn, connect with them and send them like a few notes or just email or call those funds. You can start by Engin Investors, their networks, usually on any major city or venture capitalist. But then before reaching them out, you should help the poor teacher or a bank, a school pitch deck or whatever.
And if you’re the most mature company, you can have a so-called one pager says one page, will you guys show a ready traction, which is what they cap. But then if you’re very early and you should tell the story, it’s important you tell the stories that dating. Yeah. Process. So, yeah, you should.
Doesn’t need you. It should be anywhere between 10 and 20 pages. Maybe 10 on 30 pages.
Could be less. Doesn’t matter. But you should make sure you that these guys see if you just keep it short for sure. I should be more illustrative than like, you know, university work document that you hand into the yard. Professor should be more illustrative and variation to the point. Problem. Solution. Competitive advantage. RTM financial projections on the proposal. How much are racing for homework? For how much equity or if you’re a racing debt. So the terms of the investment and you should benchmark of course before as part of your research. You should cheque which other companies are doing that. And this is actually a very important point. So when you cheque if other companies are doing that. That doesn’t mean that you should not do it at all. And you can argue how you would do it better or to other countries. And most importantly, and this is counterintuitive for many entrepreneurs, if they investors don’t find anyone doing what you are suggesting to do. That’s a red flag for them because it means that they don’t know if there is a market or even if there is a market for that problem. They don’t know if your proposed solution is the right solution because there is no evidence anywhere in the world that someone is doing that. So then that’s a red flag for the I could be at an amazing opportunity. Now, it could be like a new category, but usually it’s not a new category. Sometimes it is. And it’s hard. Of course, for investors, yeah. They that’s when they get so red flag, which doesn’t mean they won’t invest, but it’s you will need them to provide way more supportive information. I mean, a team, she’s got experience. There needs to be some underlying, you know, proof of something or some MBP you need that groups some direction towards what you are proposing.
So they are finding someone or some some some companies doing what you plan to do, even if it’s not exactly the same. It could be beneficial for you, even if it’s not a country as well, especially if it’s in other countries sometimes because you’ve got you’ve got their point saying, look, it’s working this. We’re going to do it in our country.
We don’t have much competition or no competition. So the business model works. We’re going to do it here because of this and that. So, yeah, I think those are more of their essentials. Then prepare for a lot of rejection. Yeah, a lot. And yeah, your odds will be very, very, very tiny. Little less than one percent conversion rate. So then it’s a volume game. Also, they like innovative businesses, but you don’t need to be to know what you are. I especially avoid being too smart when you talk or when you present. I mean, you don’t use, like, overly complicated terminology or or keywords lie. No. SAS biotech. Yeah. No cloud base. Yeah. Nano carbon tubes. The developer like just combining all that. Don’t try to be like too smart because remember they, they need to understand it very quickly.
You will have like. They need to get it within 90 seconds properly. And if, if they, if you don’t get them to understand what you want to do in that order, the opportunity at least together, their solution, maybe they will struggle with more. But if they don’t see the opportunity in 90 seconds that they will just pass, pass, pass on your reply. Make it so you try to get feedback, I think, from mentors or other entrepreneurs. Share. We talk about this in previous podcasts. So, you know, protecting your idea that no one should know they were were it initially is not the case. The idea is not the most important thing. It’s about execution. So just share it with people that can provide an opinion, like a qualified opinion on just seek constructive criticism. Don’t just seek for validation.
Don’t ask your friends and family unless they’re qualified and take you may agree or not. But critics is what you need, especially at the beginning. So you may then take, you know, change things or not. Usually you end up doing that.
And then. Yeah, you are so, so. So do all this research validations, changes, preparation, say, before you reach out investors, because then there won’t be many and your odds are low. So you want to maximise them and then just keep trying. So it’s a long process as well. I would say securing investment, it will take months anywhere between I mean, depends a lot. But anywhere between three and nine months, three. Of course, he’s very optimistic. I bet maybe seed, you know, not much money. And and you did very well.
And then normally takes between six and 12. So that’s why. Between three and nine, you should expect at least to have within the first three months, though, since you start racing, you should have some leads like solid leads. And then you’re getting the due diligence data room and then close. So, you know, any other fault for four dystopic four entrepreneurs that I know you are consensual on that. So you are as you said, you are open minded and open and keen to grow rice investments and grow, but then not for the sake of racing money.
So maybe that’s important. Well, I think if I think that mindset is important for the investor as well. So if so, if you are, you know, cost conscious on cash flow driven or or you are seeking profits rather than their classic, I will capture market share and then then we’ll make money. That’s usually a red flag for.
Yeah. I think to two points that I would make, and this is more about the experience of raising money rather than, you know, specific tips for how to go about doing it. But it’s very. It feels like a high school social occasion, meaning? So one thing that I found really sort of frustrating, but interesting was that when you even when you get some interest and you get people lined up, actually getting the money in and over the line can also be quite painful, even with people who have agreed, in essence, to sort of give you money. And the reason being is because if there’s more than one person or group of people who are investing in your company, then no one really wants to be the first one to move. And those like old high school dances where all the boys are on one side and the girls on the other side and they just sort of stare at each other across.
No one wants to be the first one eight. So steps on the dance floor. And so it’s very much kind of part of your role is to just sort of try and. Cajoled people over the line.
And so I found it very much like, you know, feeling like you’re in a cell of a line of people, the start line and going, like, we’re going to go. No, no. You know. You know, you don’t know what is just so be prepared for just that crap just to happen. And you just got to sort of roll with it. And then, you know, usually it goes awry, someone to someone to pull the trigger.
And, you know, you can have phone calls and do that kind of stuff. And the other point is on opinions around like pitch dark and things like that, it is good to solicit opinions. And it’s also good to get feedback from people that you present the pitch that to light people that you pitch to and things like that. And, you know, getting those replies is important, but also be aware. I would say, like, as soon as you ask someone for an opinion, even if they didn’t have one before, they will magically come up with one. And, you know, because your boss then. Right. Says, Oh, I feel I should have an opinion. So, okay, I’m gonna.
Some stuff’s going to come out and you will get so much conflicting opinion, you will get the exact opposite from different people. So, you know, you can have one thing in your pitch dark and stuff. Plus are the stupid take out. Replace it. This is the next best thing, not a stupid. Replace it with that. And it’s the thing you just took out. And it’s just bear in mind that there is no right answer. And no, there is no defensive pitch deck that you can put in front of every single investor which will convince them to invest in your company. It’s just not a thing. It’s very personalised, you know.
Different investors have different likes and dislikes, appetites for stuff. A lot of it will be very a lot of what they say will won’t even be rational or be irrational kind of stuff. It’s like, oh, well, I don’t really like the pink views there. Well, the pink doesn’t matter. You know, they’re just coming up with stuff because you ask them. So a bit like when you do some research shows you don’t want to take everything that comes out because his mouth is gospel truth. You want to try to look for the patterns and the feedback they received. So definitely ask for the feedback and take it graciously. But sort of look for the larger things. If every single person you have asked has said, well, you’re missing this, then you should out that. Whereas if. Jeff v.C over there says, wow, you know, you need this if you’re for it, by saying that your paycheque makes be green. And then, Bob, have a say over there, guys all on its biosecure should be blue. And so, you know, just to be aware that these aren’t like this is not the gospel from on high a coming down upon you. These are just people with opinions and they’re not. You know, some of them are smart, spend a lot less money on it. It’s just horses for courses.
Yeah. Just to wrap it up, following what you’re saying, which is totally true. So also, don’t waste too much time on that design. I would say that the deck. So yeah, it should be it should look good. You know, unreadable. But I just don’t bother too much. I could if you do it too perfect. From the same point of view, you are saying the colour system that you’re that it already. Tell us, the investor, that you are not working as hard in the company. You should you should be giving it take so much time to raise money. You should be doing something for the company. So another tip would be keep investors updated. Many will tell you many, many will tell you, oh, it’s interesting, but you are not ready yet. So. So so you should not take that out then. This is not an I work for me. Just keep at least as important. Keep it a list of all your contacts on what they said. And when set, segregate them into who are which stage and who are open for you to keep them in the loop. And how our newsletter. Maybe once every three months or two months or whatever you think or any time you just hit the milestone, you know, send them to all this just to keep them posted. So it’s all about, again, if you’re dating, they need to trust you and know you somehow.
And the longer you have been, you know, contacting them, the more likely it is that those all these guys, you know, these guys have been around for a while. Yeah. And I have seen their progress. Let’s talk to them now or let’s. Yeah. I think now they’re ready. So you will be surprised how many times, you know, you hit some milestones that somehow you survived your service by one year or two and then then you’re ready made. So, yeah, just keep all doors open and keep all those lists saved.
And also touching on that point, you said that even if you have solid leads that you think your got, they’re gonna invest. Be prepared for, like, you know, unexpected shit going on. So there are investors who don’t have money and they like to, you know, be around. It kind of elevates their ego. Peter Barefoot today with many investors that big egos. Yes. So it’s so they like to be for some reason, you know, hanging around and they don’t have money or they think they will secure their money.
So B, b, be sure that they they do have it ready to invest and they are not closing their fund or or, you know, if there is a priority equity.
Many times they don’t have money on their balance sheet. They will just need to turn around and raise money for your project. So when they said we’re going invest, ask them. So you have money in your balance sheet, you have a fund. How much money do you have left or how many start? When is the deadline for your investments? So those kind of questions, you will manage better your expectations as well with them.
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