© 2008 Vinny Ribas

You’ve done everything that your coaches have told you. You’ve written a convincing business plan. Your financial projections outline a reasonable investment opportunity for someone. You have piles upon piles of legal documentation making you compliant with securities laws. You have letters of intent, letters of endorsement and some high-powered personal references. Your PowerPoint presentation is professional. You have your presentation down pat. You’re getting in front of people with money, but no one is writing checks.

 If this sounds like your frustrating situation, you’re definitely not alone! Raising capital is not an easy task. In the majority of cases, the first investors are by far the hardest to win. You may have all of the tangible requirements in place, and they may be in a first class presentation. But when you’re approaching friends, family and others to be angel investors, it often takes more than just numbers and a slick sales pitch to win them over.

 Here are some less obvious observations that may be causing you to have a challenge:

• You’re not passionate about your business. People can tell when you’re just going through the motions. It doesn’t matter if the numbers show a huge financial windfall for potential investors. Many people want to see the fire in your eyes before they open their checkbooks.
• You’re passionate about your business, but it is not being conveyed strongly enough. This could happen for several reasons. Maybe you’ve rehearsed your pitch so much that it sounds canned. Maybe you are so anxious to get the money that you come across as desperate. It may be as simple as trying so hard to be professional that you hide your excitement about what you’re doing. Let loose, have fun, and let your excitement become contagious!
• Your team is not as strong as it needs to be. Do you or someone else on your team have extensive experience in your industry? Do you have a Chief Financial Officer that knows how to protect your investor’s money? Are your legal documents drawn up by experts in their respective fields of law? Be sure that you have covered all of your bases and left nothing to chance.
• Are you presenting your opportunity to the right people? For example, people in your industry are not always the best people to approach. This may be because they know the real risk involved in what you’re planning, or perhaps because they are constantly presented with safer, more secure investments. If there is a “mission” driving your company, such as saving the environment, it might be best to look for people who buy into that mission, regardless of whatever industry they are in. On the other hand, depending on your industry, people in it might be your most willing investors. This is especially true if they have contacts or resources that can help you be successful, or if your success will somehow improve their bottom line.
• Friends and family are often hard to sell. This might be because they know all of the ‘dirt’ on you from years past. They might be familiar with other risks you’ve taken that failed for one reason or another. They may have trouble seeing you as the CEO of a multi-million-dollar company. Don’t take it personally. It is just human nature. Seek out people who will respect you for what you are doing now!
• You’re not convincing. This may be your lack of confidence in your ability to take the company to great heights, or just your nervousness in making the presentation. You not only have to convince prospective investors that the company and the plan are solid, but that you are also the right person to lead it. If you are not the right person to fill the CEO position, find someone else who is. Just remember that no one is going to have the same kind of ownership mentality that you do.
• You’re not focused. Maybe you have too many things going on in your life, or you are trying to be everything to everybody. Perhaps you are ultra-creative and have trouble getting down to business without going off in tangents. Maybe it is obvious that you have ‘B.A.D.D.™’, or ‘Business Attention Deficit Disorder’™, and can’t stay on one task long enough to see it to fruition. No matter the reason, remember that investors want you working full time to grow their investments. That means being single-minded in your purpose and in your actions. They expect you to put yourself on a reasonable salary from their capital, and don’t want you spending the time they have paid for to work on non-related interests.
• Something you are doing or have done is out of sequence. Building or growing a business requires adhering to a proven formula. Experienced businesspeople and investors know this. They know the formula as well. Changing some things in that formula is like frosting a cake before you bake it. The result can be a mess that is either difficult or impossible to clean up. Be sure that you are doing everything in the right order so that you maximize your chances for success.
• You haven’t taken enough of the risk out of the venture, or at least shown how you plan to do that. The primary job of an investor is to assess risk. If an investor sees that you’ve put safeguards in place to protect their investment, such as protecting your intellectual property or building a strong executive team, they will be more inclined to invest. At the very least, show how you plan on using their money to minimize risks and protect their investments as much as possible.
• Your timing is off. You may be trying to enter an industry that is about to undergo radical changes that will leave you in the dust. You may be approaching real estate investors just as that market is hitting rock bottom. You may come across as a fo0llower rather than an innovator because your plan is not revolutionary enough for the investor prospects you’re reaching. Do everything in your power to be sure that you are approaching the right people at the right time.
• You’re relying too much on your own knowledge, skills and talents, and not enough on those of your team. Your inexperience shows. Be sure to emphasize how teachable you are. Tout your desire and ability to surround yourself with people who are wiser, smarter or more experienced than you are.
• Your original ideas are either not protected, or not protectable. Many investors won’t put large amounts of money into an invention that is not already patented, though you can often get seed capital to pay for the patent application. There may be doubt as to whether or not that your idea is unique enough to be protected. Be sure to consult with an intellectual property (patent) attorney and get their opinion about protecting your idea in writing.
• You have not done enough market research. There may be questions about whether enough people will want your product or service, whether your price point will be too high to be accepted by consumers, whether your competition has the market locked up etc. Be sure that you have done a thorough market study, you have documented results, and you have developed a strong and feasible marketing plan.

The bottom line is that there are many intangibles that play vital roles in attracting capital. Be sure to do some practice presentations in front of people who can give you a true assessment of it. Remember that people have to buy into YOU before they will buy into your company. Master the delicate balance between confident businessperson, passionate owner, capable leader and masterful presenter, and you will greatly increase your odds of attracting capital.

© 2009 Vinny Ribas

I have made a lot of bad decisions in my business life. Most of them came as a result of not having or seeking out someone to counsel with before making them. For a long time I didn’t have a solid roster of people from all walks of life, with a diversity of skills or with solid business knowledge and experience with whom I had built relationships with. Much of this time it was just Connie and I. I counted on our own abilities to do everything, handle every challenge, fix every problem and be the end-all to every customer and vendor. Needless to say, this resulted in several devastating failures.

The good news is that I learned my lesson. Starting my own company in the shaky music industry last year was not something that was done on a whim. Been there, done that, bought the tee shirt. It was a strategically thought out venture. I asked for a lot of input from my potential customers regarding their interest in what I was proposing to do. I received, and continue to receive coaching from financial, strategic planning, operational and industry experts. Much of the guesswork has been taken out of the equation. Everything is calculated now for maximum efficiency and ultimate profitability.

There are 5 important reasons why I was able to pull this kind of support team together, and have potential customers to survey in a very short amount of time:

• I have built a sizeable and diverse network of business contacts and industry contacts in the 6 years that I have been in Nashville.
• I also belong to an international CEO-to-CEO training and networking organization that expands my network around the globe.
• I don’t just collect business cards. I try to get to know people and explore how I can help them.
• I have learned how to successfully tap into the address books of the people in my personal network, extending my reach to hundreds of thousands of contacts.
• I keep in touch with much of my network on a regular basis via my email newsletter.

What happens when you have this kind of a personal network? In a nutshell, you have access to just about anyone (and anything) that you need! In my case, if I have a marketing question, I know marketing specialists ranging from local experts to the Director of Marketing for 3M who I can call. If I have a legal question I know several local attorneys as well as senior partners in some of the largest law firms in the country. I think you get the idea. A large network and solid relationships are the key!

Have you built and kept up with your own network? Do you follow up with people that you meet so that you begin to cultivate relationships with them? If not, it’s never too late to start. Plus, thanks to online social networks like LinkedIn, Facebook, Classmates.com etc., it is possible to not only find lost contacts, but also to generate, develop and manage many new ones very quickly.

Start today to organize those business cards that you have in boxes in the corner of your office. Send a quick email reintroducing yourself to the ones who you had longer conversations with, and ask if there is any way that you can help them. Use a software program like FreeCRM.com (yes, it’s free) to create a searchable database of your contacts. You’ll be amazed at how many people you know, and how many resources you suddenly have access to!

Preparing for today’s Indie Connect meetings. It’s going to be amazing!

Indie Connect: Change in evening venue beginning April 6. We’ll be at The Closing Bell on Demonbeun! Please spread the word! Thanks!

Psyched because I know we’ll have a great turnout for the Indie Connect meetings tomorrow!

Just wrapping up my last weekly newsletter!

Setting up Ping.FM – Now everyone will know how crazy I am!

© 2009 Vinny Ribas

For as many years as I can remember, I have chosen to play the role of supporting actor in many people’s lives. For example, I was the assistant director of a nonprofit for 4 years, and was greatly instrumental in moving that company from literally having no income at all to having a $1M annual budget. There, my job was to make the executive director look great! I have played drums and keyboards and been the bandleader for many amazingly talented singers. Of course, my job was to make them look and sound like superstars. I have been an advisor to numerous CEOs. My job has always been to help each one of them be successful in their own right. I took great pride in every one of these roles because I love making other people shine, and I’ve been pretty good at it!

Some people live their entire lives playing those support roles, and are very content in doing so. However, there comes a time for some people when they feel that they’ve proven themselves enough times to believe that they too can play the lead, with other people playing the supporting roles. That is exactly where I find myself right now. I am running as hard as I can with an idea that I believe I have the ability, the passion and the work ethic to grow into a transformational organization that will benefit musicians and music fans worldwide (see www.indieconnect.net)!

I know that to many, that sounds egotistical. Others also might think it’s an unattainable pipedream rather than a realistic vision. But not to me. And the reason I know that it is achievable is not because of my own self-confidence. It is because of all of the amazing ‘supporting actors’ who have seen and believe in my vision. It seems like every time I realize that I need to fill a specific role, someone with the exact qualifications, skills, talent or connections that I need shows up! I could never accomplish something of this magnitude alone. But together, I know we will be more successful than even I can imagine at this point.

I don’t know how to express my unending gratitude to everyone who is supporting me in so many ways right now. It is truly quite overwhelming. I know, and I believe that they know, that I will do everything in my power to bring them each a hundred-fold return on the time, mentorship, encouragement and resources that they have and continue to invest in me.

Every one of us has people around us whose job it is to make us shine. For them to do their work willingly and to the best of their ability, they simply need to feel appreciated. We also have people who voluntarily go out of their way to help us be successful. It is not their job or responsibility, but they do it anyway because they believe in us, care about us and want to see us reach the top. They don’t ask for anything – they just give. But one thing that I am certain of is that they will disappear into thin air the second they feel that they are just being taken for granted. It is OUR responsibility to make sure that they get their share of our spotlight. 

Look around. Who has been there holding you up when you fall? Who encourages you when life throws you curves? Who willingly works overtime to insure that you have everything you need to achieve your dreams? Who goes the extra mile to make you shine? Let them know that you know how much they have helped you. Acknowledge how big a role they’ve played in any success you’ve achieved or will achieve. And just as importantly, recognize that they too may someday feel the need to step into their own leading role. Let them know that you would be there to support them 110% should they ever make that decision, just as they have been there for you. None of us are self-made. It takes a large and dedicated team to make even just one person a star!

© 2009 Vinny Ribas

Last Sunday afternoon I spent 3 hours with from Tony Bodoh, a brilliant business consultant in his own right, who I have been coaching on launching his own businesses. One of the major things that I have helped him with is sequencing his steps. I have done this for hundreds of other businesses over the past 5 years. But this time, I went to HIM for sequencing help!

I have worked hard for months on the plans for my new business. I know where I am going, how I am going to get there, who and what I need to get me there, and what I am going to do once I’ve “arrived!” Still, it is amazing how beneficial, motivating and spirit-freeing it was to have someone else evaluate, sometimes constructively critique, sometimes honestly agree with and overall help me to perfect my plans!

The world’s greatest athletes look to their own coaches and trainers to watch and correct them all of the time. The greatest and most respected singers around the globe have vocal coaches that help them protect and continually improve their voices. The reason for this is that both the athletes and the singers need someone to see or listen to what they are doing from an outside perspective. Things always look, feel and/or sound differently from the outside than what they seem like from the inside! That is why it is also difficult for a physician to heal himself!

Why would it be any different for business owners? No matter how much you know about your  business or the field your business is in, you cannot possibly be completely objective with every move or decision you make. In fact, the more brilliant you are (or people tell you that you are), the more important it is to have someone (or more than one person) to bounce that brilliance off of.

Coaches, consultants and mastermind groups can all play valuable rolls in insuring the integrity of your decisions. They each have their own role in this process. Coaches help us keep things in perspective and keep our priorities straight. Consultants can help us with the operational details of the business, such as strategic, financial and/or marketing planning. A mastermind group is a group of 3 or more people who agree to brainstorm ways to solve each other’s challenges.

There are several reasons why having a coach , consultant, and/or a mastermind group to bounce your ideas and plans off of is important:

• When you are personally affected by the outcomes of your decisions, your personal feelings and emotions (e.g. pride, desire for approval, need to appear in control etc.) are all reflected in them. This can sometimes cause problems that you can’t see from your  internal perspective. A good coach can help you make decisions based on fact, not strictly emotions.
• Your personal needs (e.g. attaining or maintaining  a certain level of income, working at home etc.) can also color or cloud your decisions.  A coach can help you keep the proper perspective. 
• There is always someone smarter than you! You might be an expert in certain areas of your business. In other areas you may also be a very good generalist. But the devil is in the details, and sometimes it takes a number of experts (consultants) in various different areas to develop and perfect a plan.
• You never end up second-guessing yourself because you have someone else to do it for you! Third party confirmations instill confidence.
• Two heads are always better than one. When 2 or more minds feed off each other, the resulting ideas and plans can be amazingly creative and operationally impeccable.
• Sometimes it is just impossible to see the forest from the tree! Just because we like something doesn’t mean the masses will. An outside perspective can bring new, vitally important information and opinions to the picture.
• Sometimes you just need someone to help unclutter your brain so that you can think more clearly. A coach can help you sort through the masses of information that you have to prioritize and keep straight on a daily basis.

Personally, I feel much smarter every time I wrap up a session with one of my coaches, consultants or mastermind groups. We always come up with improved concrete plans, answers and solutions. Additionally, I watch how they process things, how they come up with the right questions to ask me, and how they teach me rather than do everything for me. That in itself is an education that was never not taught in any school that I ever attended!

© 2009 Vinny Ribas

Times change. Circumstances change. Feelings change. Priorities get re-arranged. Change is inevitable, and no force of nature, willpower or human endeavor can prevent it from happening. 

Sometimes it is easy to go with the flow when things change. The progression seems natural and logical, and the results are unobtrusive. Like the flow from one season to another, no one is surprised or taken back by the new surroundings. No one gets hurt or upset. The change just happens, and everyone and everything remains at peace with it.

Obviously, there are other times when change is radical, extreme and unexpected. It can be surprisingly good (e.g. winning the lottery) or devastatingly bad (e.g. losing your job). Good or bad, it can rock even the most stable and well-grounded individual.

Then there is the kind of change that we know in our hearts must occur, yet for some reason, we refuse to let go of it. There is certain kind of peace in what has been our comfort zone. And even if it is no longer ‘comfortable’, we often choose to hang on just a little bit longer than we probably should. One example of this is not quitting what we know is a dead-end job. Another is staying in a poor and/or unhealthy relationship. One more might be constantly complaining and comparing your new situation to your old situation instead of embracing the changes that have occurred and using the new opportunities to expand your horizons. I have to believe that we are all guilty of this kind of thinking or behavior at one time or another. 

Why do we have such a tendency to hold on tightly to the past? For some, it is simply the fear of change. For others it might be the unwillingness to start over. Others fear losing something they have or have had in the past. And still others just need to be in control of their lives all of the time, and having to change might mean relinquishing some of that control. Some people hold on to the past for dear life, swinging from the thinnest remaining thread if necessary. Others let things go very slowly and deliberately. Others are willing to draw the line and leave the past behind them, anxious to embark on new adventures. 

These are all common human reactions. The challenge comes when holding on too long to the past slows down our forward progress. Those constant comparisons to “how it used to be” can suck the life out of otherwise new and exciting situations. Those threads of the past that we hang on to so dearly could be tying up time, money and energy that should be spent on building our futures.

Take a quick inventory of your surroundings. Notice the keepsakes that you have. Most of them will be important and represent positive times in your past. Check to see if there are any that you should let go of once and for all. Are there people you still feel emotionally connected to who are no longer positive influences in your life? Make a mental checklist of the thoughts and emotions from the past that you still drag around behind you like oversized baggage. Are there any that it is time to break free from? Think about how making a clean break and a fresh start might help your current situation and your future. 

There is almost a ‘high’ that comes from letting go. It is an overwhelming feeling of relief. You can feel a huge weight being lifted off of your shoulders. Most importantly, you now have the capacity to embrace the future will all of that passion and emotion that was monopolized by the past and now has suddenly been freed up!