In this Episode . . .
Stephanie shares that her parents owned a business while she was in high school, but when time came to sell their business and retire, they struggled to find buyers. She realized then that the business was sellable, but they didn’t know how to talk about their business as an investment.
For Stephanie, it is fun to see people get excited, but she tries to help when they are frustrated because they see a way to grow but don’t know how to find the money to do it. Most entrepreneurs are not finance people, so don’t always understand their financial health and what pieces to put in place. They need to know their numbers in order to look and ask for capital. The numbers are very revealing!
The world changed during the pandemic. Toward the end of the year, and people adapted, there was quite a bit of money raised. The changes, including the world of Zoom, made people transition to a different way of approaching the investor. But, she did see a lot of people panic, but most turned the panic into productivity.
The biggest misconception people have, is there is this huge pool of money just looking to be spent. That isn’t how it works. They generally won’t fund 100% of the round, and sometimes they simply aren’t interested because it isn’t big enough for them. Reality is this – there are different kinds of capital for companies at different stages.
Fundraising is just like sales and marketing – you need an ideal client, and you need a message that resonates with them. You can’t stand up and simply ask, “Hey I have this thing, do you want to buy it?” Building connections is key, even though the digital world continues to advance. It’s time to pull back automation and create genuine relationships. The touch and customer service are needed.
Philosophy needs to be aligned with whomever you work with. It isn’t always prudent to get involved, and there are always going to be other opportunities.
Finally, Stephanie shares this piece of advice, “money is not your problem.” Rethink things if you feel money will get you where you want to go.
Resources Mentioned in this episode
Sponsor for this episode...
Finance-Ability is a boutique consulting firm dedicated to helping business owners and startups find their best options for growth funding. Founded by financial strategist and transaction expert Stephanie Sims, Finance-Ability can help any business owner identify the right funding partners and get through fundraising as painlessly as possible.
Visit their website to take their online assessment test to help you find out which kind of funding is the best fit for your business right now. They also have a ton of resources to help you understand business processes and financial decision-making that can help you start and build your own empire so be sure to check them out.
Stephanie has over 20 years of experience having worked with companies like Goldman Sachs and CSFB. If there’s anyone with their heart in the right place when it comes to championing the dreams of small business owners and startup companies, Stephanie is that person. Let Finance-Ability help you get the funding you need and deserve to get your dreams soaring high towards your own brand of success.