The first way to get money to chase you to fund your venture, regardless of the stage of development, is to network, network and network.Proper networking is a rather organized and certainly long term practice. Networking is not a matter of attending a single networking event, spotting a venture capitalist and striking a deal over wine and cheese. Networking is about getting to know people, especially (but not exclusively) the "right" people.
Given that it can take years to develop relationships, the time to start networking is not today or yesterday--it's in high school. By the time you are in college, a good entrepreneur is good at networking. Graduate school is a good place to get a graduate education in networking.
If, however, you complete your formal education without proper networking skills, consider the following networking tips:
1. Join a trade association. In Utah, the local information technology association is the Utah Technology Council. Depending upon your field, there are a variety of similar organizations.
2. Be involved with your alma mater. Wherever you went to college, be sure you know the current faculty and administration. Whether that is the local business college or a distant liberal arts college, find a way to get involved.
Note: Just attending a football game doesn't count (though you should do that, too).
3. Join and be active in a networking organization focused on business development. Nationally, there are chapters of the Association for Corporate Growth in many cities. In Utah, the MountainWest Capital Network and Utah Valley Entrepreneur Forum also exist to help foster business growth.
4. Find a hip place nearby to have breakfast virtually everyday with someone new. The real deal makers I know, start the day with a little breakfast meeting. I like going to the same place regularly as I develop relationships with the management and the wait staff and frankly get better service as a result.
5. Without contacting them directly, find out who the VCs or Angel investors are in your community who just might fund your deal, then focus on getting an opportunity to meet them--not pitch them. Your goal should be to do this months or even years before you need the money. This way, when you are ready for funding, it will be natural for you to call up your VC contacts to give them an update on your progress. Then you can let them ask if their money could possibly help you accelerate your growth plans or how much it would take to get you to the "next level."
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6. Read and follow them on their blog (if one exists). You can learn alot about someone by following their blog and responding sporadically with an intelligent comment or two.
Posted by: Bconn | August 9, 2006 11:27 AM | Permalink to Comment