16. A recommendation
Let me let you in on a secret. There is almost no decision in the world that a relevant recommendation cannot influence. And financing decisions are no different. A VC firm gets a hundred or more pitches a week. How are they supposed to objectively investigate each one of them? A relevant recommendation can short-circuit the process and give you a quick hearing, if not funding itself. The case with a banker is similar. The operative word, of course, is the “relevant” recommendation. A known industry (your industry) expert or someone close to the investor is a good choice.
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17. You on the Web and your Website
Let’s assume for the moment that you are a startup entrepreneur who is making a pitch to an investor. Where are they going to find information about you? A search engine is an obvious stop. So what does the search engine show up? Do you even show up? Is there anything negative that comes up? What about your Website? Does it give enough information about you, your team and your business? The same applies if you are pitching your case to a new bank or a new banker in the same bank
Recommended reading: my blog post at http://www.dare.co.in/blogs/if-you-are-not-on-google-search-you-dont-exist.htm
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18. Your CA/advisor/investment banker
This one is like the recommendation from an industry expert. Only, in this case, we are talking of financial industry experts! A good financial advisor who knows how a particular investor or bank works, what sort of projects they are interested in and what documentation they need, can make a huge difference to your case. How do you find the right one? Ask around those who have been there and done that before.
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| The ratings | ||
| Banker | Investor | |
| Business plan | High | High |
| Your brands | High | High |
| Infrastructure and land/buildings the company owns | High | Low |
| Your own house and property | High | Low |
| Patents and copyrights you own | High | High |
| Your balance sheet | Highest | Low |
| Big ticket clients | High | High |
| Your bio-data | High | High |
| Your team's bio-data | Low | High |
| Confirmed order in hand | High | Low |
| Great new idea | Low | High |
| Prototype of a great new idea | Low | High |
| First client for a great new idea | Low | High |
| Credit rating | High | Low |
| The way you dress | High | High |
| Recommendation | High | High |
| You on the Web + your Website | High | High |
| Your CA/advisor/investment banker | High | High |
| Big name on your board | Low | High |
| Business is scalable | Low | High |
19. Big name on your board
Having a famous name on your board is a huge plus, particularly if you are up for equity investments. And if the famous name can make that recommendation for you, nothing like it. The impact on a case for loans is much lesser, but is significant enough not to be ignored.
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20. Is your business scalable?
A banker may not be very concerned whether or how scalable your business will be in the future. An investor on the other hand is acutely concerned whether and by how much the business is scalable, since future valuations are at stake. Most investors will reject projects that are not scalable.
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written by R.GOWRI, February 12, 2011
written by Mortgage comparison, July 22, 2010
written by Manoj Singh Rawat, April 08, 2010
written by Pet insurance Australia, September 26, 2009
written by Anil, September 22, 2009
http://www.dexlconsulting.com/
We bridge the gap between aspiration and destiny.
Best wishes,
written by Santosh, April 11, 2009
Growth Business Development Praposal
Pl ... Reply
written by income protection, March 10, 2009
written by kartikeya, February 24, 2009
For "DARE & me" it's just a begining..
it would be better for starters if you can provide a in-depth information & some real examples.
if you ask me my feelings after reading this article...
"instead of getting nothing its better to get something " for me..
Looking for more valuables from your side.
Regds,
kartikeya
Airlinejobz
written by Gopal Shivapuja, November 10, 2008
Though quite informative on the macro perspective a little more in depth description would have been good. A few examples or case studies would have been highly appreciated.
Regards,
Gopal Shivapuja
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