If you listen to the podcast, you know I love to bring on entrepreneurs and founders. I do this for a few reasons:

• I think they often have a lot more interesting story to tell than someone who went to be a banker, for example.

• Interviews with people at big corporations require a lot of behind-the-scenes red tape and the juice is often not worth the squeeze to me.

• I want to show you all that you can do it.

At some point in the entrepreneurial journey, you may have to grapple with the question:

This will be a 3-part series where I will go over some key points to know when raising capital. Part I will go over the mindset needed. Part II will be about startups and Part III will detail how you can raise money to go buy a business.

If this already intrigues you then go ahead and check out this post I wrote: “19 Places To Find Investor Money For Veterans”

Don’t Get Scared By the Lights

Here is a really important framework when talking to a potential investor:

THEY WANT TO INVEST MONEY.

If you find someone who agreed to take a meeting about potentially investing, or you reach out to someone who self-identified as an investor it is because they are looking to write a check. It still has to be a good deal, but they want to invest in something.

Let’s say they are a professional investor, meaning they work for a fund. That means a bunch of other people gave them money and those people expect them to invest that money. That’s how their money grows. Those investors (called Limited Partners or LPs) did not pay that investor (called a General Partner or GP) to just sit on top of the money. That GP needs to go out and make deals.

That is where you as the entrepreneur come in. You have a deal. They need to invest in something.

So don’t get scared of asking them for money. They need you.

There Are LOTS Of Different Investors

Just because someone invests in real estate does not mean that they will invest in your startup. Similarly, a venture capitalist is likely not to invest in your deal to acquire a plumbing business in Kansas.

Before you go approach someone for money, first make sure the deal you have is the type they invest in. A few factors to consider:

• Is it the right asset? Meaning, are you a startup talking to a startup investor or a person raising a search fund talking to a search fund investor?

• Is it the right time? Some startup investors will not invest until much later in the maturity of the business. Others will invest when you only have an idea on a napkin. Know when they invest and ensure you are in their “sweet spot.”

• Is it the right size? Maybe an investor runs a fund and does not write checks under $2 million. Ok, well then don’t go to them when you are only looking to raise $500k. They are usually pretty transparent about this, so do your research.

• Is it the right industry? If they only invest in fintech, no need to waste their time asking for money for your healthcare software startup. Do your homework to see what they invest in and make sure it matches what you are asking for.

You Get To Choose Who You Make Rich

Investor money is not all equal.

Some investors may have terms that you do not like. They may also just be people you do not like.

Guess what? You do not have to take their money if you do not want to.

When you take an investor’s money, you may be signing up to partner with them 5+ years. That’s a lot of time to be wrapped up with someone. If you can’t imagine working with them in 5 years, don’t take their money.

And here is the last point I want to make: your reason can be you just don’t like them. I would advise against telling them that to their face, but if they are just giving you bad vibes, break contact.

Remember, your goal here is to make yourself and your investors rich. If you do not like them, why make them rich?

Be Ready to Sell YOU

For any investor, a big part of what they are investing in is YOU. That’s why investors really do like veterans. We are resilient, adaptive, and aren’t afraid of work.

Come ready to talk about why you care about this idea and why you are the person to make it happen.

Give them that sense of “This guy/gal knows WTF they are doing and is going to make me some money. I believe in them and am confident they are going to succeed.”

Think big.

Go crush it.