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	<title>newCFO &#187; CAPITAL</title>
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		<title>You NEVER raise money</title>
		<link>http://newcfo.com/cfo/you-never-raise-money.html</link>
		<comments>http://newcfo.com/cfo/you-never-raise-money.html#comments</comments>
		<pubDate>Sun, 27 Aug 2006 22:32:58 +0000</pubDate>
		<dc:creator>lorenzo</dc:creator>
				<category><![CDATA[ANGELS]]></category>
		<category><![CDATA[BUSINESS PLAN]]></category>
		<category><![CDATA[CAPITAL]]></category>
		<category><![CDATA[CEO]]></category>
		<category><![CDATA[CFO]]></category>
		<category><![CDATA[NEGOTIATION]]></category>
		<category><![CDATA[PLANNING]]></category>
		<category><![CDATA[SELLING]]></category>
		<category><![CDATA[STRATEGY]]></category>
		<category><![CDATA[VC]]></category>

		<guid isPermaLink="false">http://newcfo.com/?p=52</guid>
		<description><![CDATA[The question that EVERY entrepreneur wants to know is:  &#8220;How do I raise money?&#8221; or some other version of it.  The question is that you NEVER raise money.  WHAAAAAAAAAAAAT? You say (I am sure).


Plain and simply you NEVER raise money . . .
. . .  but you SELL something:

you sell shares in your company (e.g.: [...]]]></description>
			<content:encoded><![CDATA[<p class="date-header">The question that EVERY entrepreneur wants to know is:  &#8220;How do I raise money?&#8221; or some other version of it.  The question is that you NEVER raise money.  WHAAAAAAAAAAAAT? You say (I am sure).</p>
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<p>Plain and simply you NEVER raise money . . .</p>
<p>. . .  but you SELL something:</p>
<ol type="a">
<li>you sell shares in your company (e.g.: Angels, VCs);</li>
<li>you sell portion of your company&#8217;s future cash flow (e,g,: loans,    bank);</li>
<li>you sell seats on the board (usually an accessory top a.);</li>
<li>you sell control: in a VC deal, often the first 49% of a company is free,    it&#8217;s the additional 2% that&#8217;s very expensive.</li>
</ol>
<p>Therefore raising money is a selling activity, a selling process that encompasses institutional branding, institutional marketing its own collateral (e.g.: business plan), and its own selling experience.</p>
<p>Of course if you believe that things are no longer sold, but they are bought:  what are you doing today to stimulate the purchase of what you are selling, either your goods or services, your shares or both?</p>
<p>Try to approach the raising money process as a selling process, sell, sell, sell, sell in everything you do:  will interested investor call your support line?  Will they place an order with you?</p>
<p><strong>Q.:</strong> Where does the selling/branding stop and where does it  begin?<br />
<strong>A.:</strong> NEVER!  It never stops!  From the way you answer the phone, to whether you answer the phone (Amazon.com does not have a phone #, but you can have Amazon.com customer service call you), <a href="http://knitenabler.typepad.com/photos/uncategorized/zappos.JPG">Zappos  uses white boxes highly distinguishable if you see someone walking carrying  one</a>, in Rome (Italy) there&#8217;s a restaurant called <a href="http://it.search.yahoo.com/search?p=la+parolaccia+roma&amp;fr=FP-tab-web-t340&amp;ei=UTF-8&amp;meta=vl=lang_it" target="_blank">&#8220;LA PAROLACCIA&#8221;</a> where the wait staff is rude, and calls customers names ON PURPOSE, and customers do the same.  Do not go there alone or on a date!  Calling their customers dorks and a-holes is their brand!</p>
<p>Suggested reading:  <a href="http://www.amazon.com/gp/product/0471721115?ie=UTF8&amp;tag=2cl-20&amp;link_code=as3&amp;camp=211189&amp;creative=373489&amp;creativeASIN=0471721115" target="_blank">SELLING IS DEAD</a></p>
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<p><div id="attachment_54" class="wp-caption alignnone" style="width: 117px"><a href="http://newcfo.com/wp-content/uploads/2008/08/selling-is-dead.jpg"><img class="size-medium wp-image-54" title="Selling is dead" src="http://newcfo.com/wp-content/uploads/2008/08/selling-is-dead.jpg" alt="Selling is dead" width="107" height="160" /></a><p class="wp-caption-text"> </p></div></td>
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