Can networking help with a Capital Raise?
Russell Cox can show you how

Since you're reading this article, I think it's safe to assume that you a) are an entrepreneur, 2) work with or know an entrepreneur, or 3) know how to spell "entrepreneur." If any of these are true, then you undoubtedly know what drives every single hour of an entrepreneur's life: capital.

Entrepreneurs are dreamers who are acting out their dreams. And no matter what their grand vision is, they need money to make it happen. Raising capital is always a huge part of what they do, think, eat, and sleep.

You might very well ask, Can networking help with a capital raise?

In a word: absolutely, no question, of course, you bet!

Okay, you got me. That's more than one word. But I wanted to bring home the fact that networking can be utilized very effectively to bring investors into the picture.

I had a talk recently with Russell Cox of The Select Investor. Russell is a capital strategist, and offers professional guidance in the field of bringing in investment capital to move companies forward. Learning how to network properly is a big part of Russell's coaching, and he passed on some tips to me.

The Pitch

Honing your pitch is the first step, of course. Russell's advice on doing so is simple and sweet:

Keep in mind that this description (he calls is a "thumbnail sketch") cannot contain any dollar amounts or specific terms about the money you're raising. That is construed as making a "public offering," and is considered illegal by the SEC. However, by keeping your pitch about the company itself and not the numbers, you're completely within legal grounds.

After presenting this thumbnail sketch, Russell suggests you close with this question:

Sounds simple, doesn't it? Russell has coached many people to success with this approach, and he maintains it can be used at any networking event, and with everyone you meet.

The Venue

So now that you have the pitch, where can you go to practice it?

Most any business or professional event is likely to be a good venue for meeting investor candidates. As some prime examples, Russell lists Rotaries, Chambers, and charity fund-raisers. (Those donating to the charity are lucky to be present at the fund-raisers, too.) Make it a habit of frequenting these types of events, and you're likely to learn where you can sniff out the best candidates for jumping on board with you.

To learn more about Russell and the capital language you need to communicate with investors, go to www.SelectInvestor.com, or write to success@SelectInvestor.com.

Thank you for taking the time out of your busy day to read me on The National Networker! Please let me know if an article that you've read here today has helped you in any way.

Contact Jan at JanA@TheNationalNetworker.com or via TNNW Blog.