Millionaire Moms Guide to Raising Money

“How can an entrepreneur starting out in business expect to raise capital in today’s down market when the banks aren’t lending?”  This was a question posed to me recently. First, expect is a passive and weak word. It’s important to choose our words wisely and train ourselves to be solution based rather than problem focused.

Here’s the down low from my experience raising $68 million dollars for my business ventures in three distinct industries.  The short answer is there is always money available for the right idea at the right time.

The trick is getting in front of the right people and not getting discouraged when you hear “no” a bunch of times.  Raising capital is a sales function which means it’s a numbers game.

It’s also easier to close deals with people who know your intelligence level, character and work ethic. By the way, make sure you have these before trying to convince others to invest in your company. You typically don’t get a second bite at the apple. If you lose someone’s money they might forgive but they definitely won’t forget!

Another tip is to share your milestones with those that can help you. If an investor sees you making progress over time the odds of investing in your company increase.  Remember, it’s the jockey people bet on not the horse.

I’ve always preferred talking with investors within the industry I am operating in. The battle is half won already. They get it. I just have to be convincing on the business plan, the management team and what’s in it for them.

I have always raised funds in a way that flows with the current economic cycle rather than against it. When IPO’s were hot I structured my business model from the start to take advantage of the trend. When I was active in real estate I leveraged OPM (other people’s money).  In today’s marketplace I  am experimenting with creative financing methods.

I believe in leading by example so I am showing my millionaire moms members that you use creativity, leverage and knowledge to raise funds. I once bought an investment house for $10.00 in earnest money and turned it into $10,000 in one month. This is just a small example.

Those who succeed are not always the smartest. For instance, school was the backdrop to my social career. Certainly many were smarter than me but few were as motivated or resourceful in accomplishing goals. To quote Cynthia Good from Pink Magazine, “The triumphant are those who don’t give up!”

My current venture www.millionairemoms.com is a wealth of information. I have asked dozens and dozens of ultra successful moms how they raised their funds? The answers have been fascinating. Women typically take a different approach towards raising money. They tend to want to self fund more then men and don’t typically consider venture capital funding at all.

Here are two examples of creative financing I’ve run across. One mom sent her business plan package to 30 CPA’s. She figured they’d know which of their clients would have an appetite for her type investment. She sent a letter asking they  review the plan and submit it to clients that might have an interest.  She followed up and got funded. A member of millionairemoms.com heard the idea and did the same thing. She got funded as well.

Another successful mom told me how she enlisted her local University to help her write her business plan. I thought this was a good idea. I tried it and it worked. The MBA students took on my project. I am now competing in business plan competitions with the school. The cash prizes range from $10k-$100k per competition. This will be seed money to grow my business. Venture capitalists will be in the audience. This will be a great networking opportunity. From this experience I will also be polished in pitching my plan should I ever seek outside funding.

Today, I read about how Tech billionaire Mark Cuban is offering “open source funding” for all entrepreneurs.  He details it on his blog www.blogmaverick.com. You post your business plan on his website and get comments and possibly funding. This isn’t for everyone but the point is, think outside the “have to get a bank loan” box. There is more than one way to skin a cat!

If you want additional insider secrets like how one of our millionaire moms invented over 100 products without spending money up front then sign up for my free weekly eZine at www.millionairemomssecrets.com for a free audio and written transcript detailing her journey.  She even landed a contract with K-mart for $1 million dollars without an appointment!

Always keep your ears open for opportunity and go with the trends, not against them. (Hint…I just offered you one!).

Carpe Diem!

Revolving Door Mentality

I have been very busy writing my book due out in Spring 2009.  Today as I typed away I added some thoughts from millionaire mom, Nancy Bogart from www.jordanessentials.com. She is an incredible mom and business woman.

At the beginning of her journey running her bath, body and spa business she found herself surprised whenever someone in her company left. She explained to me, “Not everyone will love your dream like you do. If you are the owner, you really do care more than anyone else.  It never occurred to me people who were with me in the beginning would ever leave.  I had to learn to get over how I felt when this happened. ”

She went on to say,  “There are seasons in life and ways of life.  A season of life is temporary and short term.  A way of life is confidence, strength, purpose and vision.  Seasons come and go, be sure to keep the main thing, the main thing, and that is Love.  Nothing is greater and strive to be loving to someone as they end a season with you. You never know what will happen in the future. A good friend once told me to have a revolving door on your business and life.  Let people come and go as long as it is healthy. Living life with this mentality will lead to an abundance of people in your life.”

I love the concept of a revolving door with relationships. Instead of burning bridges or passing judgement let’s  strive to understand everyone has different needs, wants and desires. This does not make them “wrong” for not seeing things your way. This is a beautiful metaphor. I hope you recall the next time you feel the sting of someone exiting your life whether in business or personally. Love abundantly and create rather than react. These are two things at the top of my to do list for 2009!

Sugar Lips and the Entrepreneur

For some reason the rhyme “What are little girls and boys made of” popped into my mind this morning.  You know “sugar and spice and everything nice”. If someone asked me what little entrepreneurial moms were made of? I would answer an equal spilt of flexibility and focus. Of course, sugar and spice are important traits to because we must be able to motivate people to see our points of view (sugar) and sometimes lay down the law (spice). Some may think the sugar comment is a manipulation but I disagree. One of the most successful, admirable women in politics is Elizabeth Dole. Do you know what her nickname is? Sugar Lips. Yes, that’s right, Sugar Lips. She is well known for complimenting all those see encounters. The result of making everyone feel good to be around her? She accomplishes her agenda and feels good in the process out. If we treat each other as the amazing miracles we are then life does in fact get better on every level. If the past President of the Red Cross thinks their is merit to it then maybe there is wisdom in this approach? She realizes to get people to work towards a common goal they must feel good about the organization and their role within it. This philosophy translates well to any area of life. Mary Kay Ash said we all have invisible signs around our necks saying, “Make me feel good about myself”. Today why don’t you go about your day with that thought in mind? Imagine each person you encounter as having that sign on. What you can do to help them achieve it? How did it make you feel as a result? Who knows maybe we will start calling you Sugar Lips!