He Loves Me.. He Loves Me Not.

5 Secrets to Raising Capital in Today’s Market

Sorry to burst your bubble, but nobody really cares about your deal.

If you’re sending out a huge long-winded prospectus to people like me, you’re making a big mistake. All you’re doing is wasting your time and killing trees.

But I’ll let you in on a little secret. I used to do the exact same thing, until I realized nobody ever gave me any money.

Then it hit me … People don’t invest in you because you have the best product or service, they invest with you because they like you. Yes, you are more important than your product.

Sure, there may be trillions of dollars in cash sitting on the sidelines right now, but in this post-Bernie Madoff era, people are naturally suspicious. So they’re certainly not going to part with that cash to fund your deal or business unless they have confidence in you.

With that in mind, here are 5 tips for raising capital in today’s market.

42 comments

    • Shawnee Bigelow

      JT,

      What you say is important, but may I add a little notion that may spark your interest. Non profit organizations have been following those tips for years…in fact they wrote the book on it. Relationship building is key to raising capital, you are right. I have seen some interesting trends within the corporate world in the last few years and that is towards strategies that have long since been established by nonprofits. It is the idea of community, building strategic alliances, and developing long-term relationships for the benefit of the cause, rather than just the pocket. If corporations can latch on to this idea that if you really want to be successful, you must also want to see others be successful as well, then we will see many opportunities for jobs, investments, and even more capital increase dramatically. You may want to check out what nonprofits are doing to raise capital…your steps fall in line with what is already being done.

  1. Chuck Howard

    100% on the mark comments, make alot of sense. Its too bad that the school system won’t teach you this. Information coming from people that actually do this in the field every day, is priceless. Contrast that with the school system that doesn’t teach anything about money, written by professors that have credit card debt, are financing their cards & can’t conceptualize the difference between credit and debt.

  2. Rino Solberg

    You are SO right JT. People who has money to invest do not want to read huge prospects, they will much more buy in with people who they belive in. I have gotten sevaral businesses financed over 40 years and in EVERY CASE it was from poeple who believed in me and liked me, NOT the prospect or the product. But the most important is that you have to have INTEGRITY because that can be seen, smelled and thouched by investors after a very short time. And in business THAT is what makes it or breaks it.

  3. Debra New

    JT,
    What you have conveyed is so true and basic in the business world, except branding is never taught. I, myself have utilize the branding portion to turn heads to listen to what I have to say. You’re right on the piece of relational capital, especially in this down economy. People will need to trust you first, then invest.

  4. Rachael Mah

    Hi JT,
    Brilliant tips on the 5 points. Relational capital is working for me too :)
    Great foresight by tapping into the China market. I am doing so too.

    Fei chang gan xie ( thank you very much in Mandarin).

    Rachael

  5. Olga Lyons

    Great article, straight to the point. The only thing I have to add is that investors are looking for those who have that unstoppable passion, that excitement about achieving the promised goal. I believe that is what counts most in the end of the day, as JT likes to say, success is not a matter of chance, it’s the matter of choice. Full commitment is what the investors are looking for, and keeping that in mind, the 5 points JT makes in this article will definitely guarantee a success.

  6. Brad Riley

    Great info JT, thanks for always sharing your knowledge to us. Relationships are the basis of business but you must always remember that the deatails are of grave importance. Again, thanks for your amazing insight.

  7. Ralph Idema

    At 68, I appreciate the wisdom of a young man. I did “brand” my life project as “The Islands that want to join Canada.” I helped bring the Turks and Caicos from “the Ground Floor” to “the Penthouse.” My new “Ground Floor Challenge” is St.Kitts-Nevis, and my brand is your “Passport to Paradise.” I might recommend a “#6 – there is NO quick deal!” It took time, and did I build relationships over time? Forever! They will accompany me to St.Kitts. And for your “#7 – there must be a TAX ADVANTAGE to every deal.”

  8. Linda LeBlanc

    Relational Capital…it does all come down to that. If people don’t like and trust you, you can have all the knowledge and money in the world and investors will simply take their business to someone they do like and trust.

  9. James Hu

    JT, hi, thanks for sharing the tips – it’s a great 5-point system to use in any situation. I’ve learned that when you put yourself out there through integrity, adding value, and relationship building, unique opportunities presents itself in ways that you couldn’t imagine or rather in your case, probably so.

  10. Fee Gentry

    JT… Your timing couldn’t be better. I am flying out tomorrow to make a presentatation to potential investors to raise capital for our business venture! Thanks for reinforcing what my gut told me to do, but where “experts” advised me to focus on the financials. I remember you have always emphasized that I don’t take my advice from broke people. Thanks again for the deposit in my personal and business life. Stay Tuned!.

  11. Sieasa Coppedge

    I have always known that the relationships will take you further the finances. So, I am looking forward to being with all the family soon. Thanks JT for keeping me thinking with the points you have hit on. I know that getting back to the days when it was important to know that the value you can give some one else is a greater gift to yourself. Getting back to dressing for success will make the world look different and I am loving it.

  12. KHLee

    Excellent Subject, I have just return from Beijing a week ago and this is what I have found out that businessmen from the Northern side do biz are so difference compare to the Southern people, they believe in good relationship where biz deals are done by just a hand shake and the people in the Southern don’t practice this at all.

  13. Dr. Mamiko Odegard

    Thanks for the great information, JT. I’d add that it’s important for all of us to focus on helping the other person to succeed by really listening and tuning into their needs and projects first. Then we’ll have them be a loyal client or partner for life!

  14. Jim Bearing

    That was an amazing article. You have a way of just giving it to us. You are like the Simon Cowell of coaching and speaking. I love it. I will pass it on to my friends. Keep it coming. You truly a marketing genius

  15. Graciela Blackstone

    Thank you JT,

    As a grateful student, I have seen myself in some the the examples. I also have seen some of the right things I’m doing.
    You know my project and situation. I look forward to growing more at Mega VI. Thank you for your insight communication for those of us needing guidance on the proper ways to reach out to A players.

  16. Julia Van De Spiegle

    What’s so great about your advice, is that it covers all points……yes, someone will say “dress the part” but not much more and very seldom is branding mentioned; your emphasis on relationships, integrity and trust are great reminders. Great to know you had a successful and fascinating business trip to China…..(jetlag allowed!) Thanks again! Julia

  17. Kathy Valdez

    Thanks JT for a timely article on raising capital. As always, it’s right on target. I appreciate your insight and am grateful you are willing to share your knowledge with us. Thanks again.

  18. Orven Caster

    JT when you reach the top and find one who has everything money can buy, let that person know we have Certified Waste to energy technology that has the capacity to restore clean water and air while producing up to 90 mega watts of clean energy from a renewable resource called landfil waste, One of the greatest legacies we can leave our children is clean water and air, What,s in your water

  19. RON BOWEN

    J.T. I get it, it totally make sense, Amercia and the world is all about the inside track. It’s who you know, like the old saying says, “it’s not what you know, it’s who you know”. From knowing someone come favors, and a plus to that is if they like you. Now not to taking away from being prepared and great timing, because timing is always everything as well. Being at the right place at the right time, and being liked and prepared equals a winning combination. Thanks J.T. for the update and great info

  20. Aurora F. Rimando

    Welcome back JT. As always, great advice & you’re right — clients have to like you first before they buy whatever you’re selling/dealing. I’ve seen that first-hand when I did sales before/5 yrs.. 1 of my best clients was a lady who came back to buy from me (again) new furniture, even though she was already at another store with same exact furniture for the same price. She told me she preferred my service. She was really a repeat client ‘for life.’

    You also wrote that we can ask you for any topic. How about simple Q & A, please? Mine, if it’s not that stupid (we’re ‘newbies’). On Foreclosures from the banks — my sister thinks we can’t really specify our profit margins, since we’re at the mercy of the realtor selling it for the bank. That we have to take whatever the realtor gives us? That doesn’t sound right to me, but I don’t know the right answer. Hard to focus, I’m doing so many things at the same time (my non-profit, my divorce & looking for R E deals). Would appreciate a response please ASAP, when u get a chance. Thanks much!

  21. Kumar

    excellent tips. Thanks for writing article this important article. I am going to use it this week. I am sure I will get it done. Thanks again JT.

  22. Margaret Tom

    I appreciate how much time you spend PERSONALLY to reach out to us and give us the benefit of what you have learned about success. Thank you! I would like more details about branding. I am not sure I fully understand what it is, only some aspects. Would it be correct to say it is your public face, for instance?

  23. Mr. Ron G

    Your post was right on time, as a newbie what you said about branding makes me appreciate the necessity of being ready to take advantage of the next photo-op and makes me regret the ones I missed. Never again. Thanks much appreciated.

  24. Cassie Valendro

    All I can say, JT Foxx is that you are my HERO. You are such an outside the box thinker. You truly are an inspiration and I follow every work you teach because I know they work, because it has taken my life and business to the next level. See you at Mega Partnering

    Cassie, NJ

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