Home Wealth Project
Extensive Research On How To Build Wealth From The Comfort Of Your Own Home.
A Peek Behind the Angel Curtain Reveals 3 Secrets to Attracting Money
Jan 6th
Finding startup capital has never been easy, and has become a more significant challenge over the past few years. Home equity, once the most popular form of startup and working capital, has almost disappeared with the collapse of housing prices. Bank lending has been almost nonexistent for small companies, and private investors (friends and family) have kept a tight grip on their funds. Even angel investors and private equity firms have become much more conservative regarding valuations, deal structure and investment amounts.
All of this has contributed to the slowing of our economy over the past two years, but is now finally showing signs of rejuvenation. With angel investing expected to pick up slightly in 2011, here is a “look behind the curtain” to see how one very successful angel investment group tracks and considers its investments.
This spreadsheet shows seven actual investment positions (PDF) of an angel investor friend of mine–and here are three critical insights that will help you be more effective at attracting angel investment in the coming year.
1) Pre Money Valuation
This is the value of your company before the addition of the funds you are seeking. For example, company number 4 is seeking $500,000 (current raise amount) at a $2 million valuation. This means the company will have a value of $2.5 million after the investment, and the new investors will own 20 percent of the company’s value ($2.0 million + $500,000 investment = $2.5 million/$500,000 invested).
It is worth considering the company’s 2009 and 2010 revenue numbers and customer/partners to form a basis of comparison for the value of your company. Many angels tell me they will not even consider a new company with an initial valuation above $2 million, because such companies just do not exist.
2) Liquidation Preference
I covered this in an earlier post but investor preference is 1) almost always required, 2) flexible to fit almost any situation and 3) helps attract investors.
3) Market Perspective
It is always difficult for an entrepreneur to have a proper perspective on the marketplace, investment landscape or client reactions. Keep in mind that any angel investor (or even family/friend investor) is comparing your opportunity to other alternatives.
This spreadsheet, which gives you a peek at other company investments this angel has made, should serve as a measuring stick and allow you to see how valuable all your small successes are when building a successful company.
If you are building a company worth an angel investment, it has to be worth selling for a significant profit for you and your investors. Be sure you have a clear vision of how you will accomplish your exit plan and become a successful portfolio company if you are hunting for angel investment in 2011.
A Peek Behind the Angel Curtain Reveals 3 Secrets to Attracting Money
View full post on Small Business News, Tips, Advice – Small Business Trends
5 Reasons Your Website Isn’t Attracting Leads
Jan 4th
So, what are your big Internet marketing plans for the New Year? Will you be investing more in social media? Will you start blogging? Will you take a more proactive stance with self-promotion? Whatever your online marketing plans, the end goal is likely to attract more people to your website in the hopes that the influx of new eyes will translate into new customers, new leads and new opportunities for your business. However, you won’t be able to do any of that if your Web site is turning people off, instead of turning them on.
Below are some very common reasons SMB Web sites fail to attract customers and how to avoid falling prey to them.
1. There’s no conversion path in place.
One criticism of many SMB sites is that they don’t include a clear conversion path for their customers. If you want customers to take a certain action, you need to create a funnel intended to guide them to do that. Simply stringing together a number of content pages won’t necessarily put someone on the path to buy. Your conversion path may be as simple as a solitary landing page paired with a call to action, or as complex as an entire microsite. Either way, you are in charge of designing the flow of your website. Creating a clear conversion path not only helps customers feel more comfortable on your site, it also gives you clear data to track so that you can see where people are abandoning, where they’re engaging, etc. The more data you have to act on, the better you can design your site to attract new customers.
2. There’s no sign of life.
Customers are discriminating. You can bet that when they land on your website they’re going to kick the tires a little to see if they can trust you. They’re going to check your copyright date to see if it lists 2011 or 2006. They’re going to look for old statistics or other signs you haven’t taken the time to update your content. They’re going to check your company blog to see how often it’s updated, if you reply to commenters, if people are talking back, etc. They’re going to look for signs that you’ve created a dynamic website, instead of one lying around in stagnant water. Before your customers get there, take a look around yourself. Would you hang out with you?
3. It’s all about you.
Customers don’t head to your site to hear how awesome you are. They’re there because they have a problem they need you to fix or a question they need you to answer. Your website should be designed to help them quickly achieve whatever it is they came for. Too many references to “I” in lieu of “you,” too much sales talk instead of helpful information, and too much of you not addressing their fears/wants/desires will turn people away from your brand, not on to it. Your customers don’t care about you–they care about how you can help them.
4. People can’t find you.
If you’re finding that customers aren’t interacting with your website at all, there are a few questions you need to ask yourself.
- Is it accessible? With more and more users searching via mobile devices and on the go – is your website mobile accessible? If it’s not, users trying to find you may hit a dead end. There’s nothing worse than trying to find your accountant’s website while on the road and finding out his site only renders in Flash and won’t load on your phone. Not that I’m talking from experience.
- Is it properly SEO’d? Have you made it easy for users and search engines to find your content? That means using the right keywords, linking properly, making your site super crawlable for spiders, and staying away from common SMB SEO mistakes.
Sometimes before you can see more traffic, you have to break through the obstacles preventing you from seeing any.
5. There’s no POD.
If you want to attract people, you have to give them more of you. You have to stand out from the crowd and show them something that they’ll want to align themselves with. Take a look at your own site – what are you showing potential customers? I don’t mean the graphics or the videos you choose to incorporate (don’t forget to SEO those, too!), I mean the experience that you’re creating. Are you using your site to set yourself apart, or do you come off like everyone else? Are you talking to customers in their own language or filling your pages up with buzzwords and jargon? The more powerful a POD (point of differentiation) you can create, the better you’ll attract the right customers to your brand.
If you’re finding it difficult to attract leads via your website, it may be time to ask yourself some hard questions. Before you can fix the problem, you first have to identify it. What are some struggles you’ve had attracting new leads? How have you fixed the problems?
5 Reasons Your Website Isn’t Attracting Leads
View full post on Small Business News, Tips, Advice – Small Business Trends
Are You Attracting Facebook Fans or Driving Them Away?
Nov 17th
You entered the world of Facebook with all the best intentions. You wanted to use the social network as a way to connect with current customers, attract potential new ones, and share a little bit of your brand with those listening. So every day you take to the site to post new content and engage, but is it working? Are you attracting Facebook fans–or are youdriving them away? How can you tell the difference?
Below are some activities known to either attract or repel customers. See which categories your behavior falls into. If it’s the latter, maybe it’s time for a revamp.
How To Keep Them
Offer discounts. Studies continue to show that the leading reason customers engage with brands on social networks is to take advantage of social media-based promotions or coupons. Customers are willing to “like” a page with the hopes that the brand will “thank them” by giving them a discount or special offer. When you’re creating these offers, worry less about the extravagance of what you’re giving out and more about making sure it’s something unique and an offer people will want to redeem. For example, a discount associated with breaking a certain number of fans is more memorable than a generic 10 percent off coupon they could get anywhere.
Solve their problems. Another reason customers will look to connect with you on social media is because they have a problem they need you to fix. Maybe their cable isn’t working, they got a bad burger or they can’t figure out how to get the battery out of their Blackberry. If you’re providing information to help them solve their problems or answering questions as they come in, then you’re providing value and enough reason for someone to want to stick around and remain a fan of your page.
Chat with them. Are you using your Facebook page to host conversations about community issues or are you simply using it as a datafeed, auto-posting your Twitter updates, blog posts, etc.? Users who join your Facebook page are doing it because they want that extra connection with you. If you’re seeing a lot of conversation and engagement between members, it’s a good sign you’re attracting them, not sending them away.
Get their feedback. Another good way to retain fans is to ask for their feedback about new releases, future products, etc. People like to feel like they have a say in the brands they love, and inviting them into the process makes them feel more connected and part of what you’re doing. The more invested you can make someone feel, the greater the chance you’re going to keep him or her on your side.
Entertain them. When I’m deciding which brands I want to engage with on Facebook, I look for brands that can not only keep me informed, but keep me entertained as well. Don’t go totally unprofessional, but don’t be afraid to have a little fun or post a link to something that made you smile. Showing the personal side of your brand is a good way to keep people interested in what you’re doing and make them feel more connected to you.
How to Drive Them Away
Disrespect other members. How do you treat the members in your Facebook community? Do you allow healthy debate to take place or do you hop in and criticize those who may share negative comments about your brand? Do you censor their messages because they’re not totally complimentary? Do you step in when other members are fighting amongst each other? It’s your job to create a healthy environment in your community. If you’re not, people aren’t going to want to hang out there.
Post too many messages. How many times a day do you post? Are you constantly flooding your wall with new updates, new blog posts, new links and new synced Twitter updates? If you are, you may be giving users more information than they can handle and driving them away from your page. Information overload can be quite intimidating!
Don’t post enough messages. On the flip side, maybe you never update, to the point where people wonder if you’re still there. While you don’t want to flood people with constant updates, you do want to give them a sign that you’re still part of the community and listening to what’s going on. No one wants to hang out in an empty house.
Ignore feedback. When you ask for feedback, do you acknowledge it in some way or do you let it fall on deaf ears? While asking for feedback is a great way to encourage people to become part of your community, if you continually ignore them, it may also backfire. You don’t have to act on everything that is suggested, but do give people a sign that you’re listening and appreciating their effort.
What signs do you look for that people are engaged in your Facebook community and aren’t secretly looking for the “unlike” button?
Are You Attracting Facebook Fans or Driving Them Away?
View full post on Small Business News, Tips, Advice – Small Business Trends
How Attracting VCs Online Can Attract Legal Headaches
Jul 11th
With Foursquare landing $20 million in a recent venture capital funding deal, entrepreneurs are starting to ask, “Why not me, too?” Increasingly, they’re turning to internet sites to attract investors who otherwise might never have heard of them. But is that a legally prudent way to go?
Using the internet to interest VCs in your business idea can gain you a lot of exposure. But it can also ensnare you in a legal net if you’re not careful. There’s the need to balance the increased “eyeballs” with concerns about confidentiality.
Plus, not phrasing the post carefully could run your company afoul of the many state and federal securities laws. Listen to this podcast below as we talk to Robert Bertsch, Esq., co-founder and CEO of RaiseCapital.com, on how to handle these thorny issues.
View full post on Entrepreneur.com – Daily Dose
The Awakening Course: Attracting Wealth, Health, Happiness And Love.
Feb 27th
Earn 50% On Affiliate Commissions! Dr. Joe Vitale, Star Of The Hit Movie ‘The Secret,’ Has Taken The Law Of Attraction Up To A Whole Other Level, Providing Practical Step By Step Applications To Help You Create The Life Of Your Dreams! Plus 2 Bonus Discs!
The Awakening Course: Attracting Wealth, Health, Happiness And Love.
The Law Of Attraction: The Science Of Attracting Extraordinary Wealth.
Feb 25th
Unleash The Wealth Secrets Of The Law Of Attraction By Following Some Simple Step-By-Step Instructions. Learn How To Attract Money, Love, And Happiness… Your Guide For Right Living. Inc Excellent Affilaite Program Paying 50%.
The Law Of Attraction: The Science Of Attracting Extraordinary Wealth.
