I see it all over LinkedIn and a myriad of other web sites people looking for pre-seed, seed, angel, super angel, crowd sourcing and VC monies. But are they ready to receive it?
The point of investment money is to accelerate growth, which means they have to be ready to spend it "tomorrow" to start this growth. This is one of the mental check items an investor is looking for.
With this understanding, I ask again are they ready to receive money?
As you can imagine people always say to me "yes James, I'm so ready", but our experience is that they are not.
If you're looking for money, ask yourself if you're ready to receive it. The following checklist will help you answer this question:
- Can you complete a one page business hypothesis in less than an hour? (validated by someone who knows about investing)
- Marketing plan
- Sales plan
- Budget – detailed enough to give a clear understanding where the investment money is going
If you approach an investor with these artifacts, she likes your idea and the chemistry is right, then you're a million miles closer to the money.