312 CHAPTER 12 GETTING IT APPROVED
CHASING AGAIN
Generally, you do not have to chase good news. If all goes quiet and you do not hear
anything for a long time, it probably means that you are not going to get funding from
that source. Of course, this is not necessarily the case. You should certainly never assume
defeat. Always follow up positively. The agreement to telephone the most senior person
at your first meeting provides an opportunity to do so without appearing to pester.
Interestingly, investors are remarkably bad at saying no. As a group, they prefer to
let matters drift until the message sinks in, rather than helpfully saying ‘sorry, not for us’.
Bankers are better at this, having attended training courses dedicated to helping them
say no.
‘Most people give up just when they’re about to achieve success. They quit on the one-yard
line. They give up at the last minute of the game one foot from the winning touch.’
H. ROSS PEROT
Back to the drawing board
If you are rejected, the best consolation that you can have is knowing why you failed.
Always ask. At worst, you might learn something that will improve your business plan or
next presentation. Or better, there might be a simple gap that you can close. We like your
proposal but we have decided not to invest unless we have. …
If you are getting nowhere, you need to consider redrafting some or all of your busi-
ness plan, or maybe revisiting the strategy. I was once involved with a business plan for
a unique invention. I cannot tell you about it specifically because it is still under wraps.
The point is that there was absolutely no competition for this amazing item. But it soon
became clear that saying this was counter-productive. Recipients of the business plan had
to analyse the situation within their established framework – which includes competitive
analysis. Once I had documented some theoretical competition – other things that con-
sumers might spend their money on – the plan was much better received. It is partly this
collection of experiences that has shaped this book’s suggestions about ‘what you put in a
business plan’.
If you are looking for outside funding, use the first couple of meetings to build experi-
ence. Start opening up additional avenues as soon as possible. It can take three months
(or three days) for someone to appraise your plan. If you have to approach ten sources of
capital, you want them to be concurrent. Otherwise, if they were end-to-end you might
spend three years raising the cash.
..................Content has been hidden....................
You can't read the all page of ebook, please click here login for view all page.