Here’s where I’d love for you to share with me whatever documents or processes you use and then I’ll simplify them into steps for a 1500 word article.

[This is only the outline for the article. Please check again for the full content. We intend to publish 1 article every month.]

Resources:

HBR – What’s It Worth?: A General Manager’s Guide to Valuation
Inc.com – Common Approaches for Determining Business Value
Inc.com – How to Find Out What Your Business Is Really Worth
Inc.com – The Ultimate Valuation Guide
Inc.com – Business Valuation Guide

Competitors:

CPA – Understanding Business Valuation: A Practical Guide to Valuing Small to Medium Sized Businesses, Fourth Edition
Exit Adviser – How to Value a Business – a Step-by-Step Valuation Guide

The post What Is Your Business Worth? A Nonsense Guide to Valuation appeared first on Stern Ventures.

This means, if you’re raising capital to expand your business, your number one job is to make sure the demand for what you supply is high … incredibly high. And one of the most powerful tools to raise demand in the eyes of your prospective investors is scarcity.

As persuasion expert Robert Cialdini explains …

According to the scarcity principle, people assign more value to opportunities [and objects] when they are less available.

The scarcity principle holds true … because things that are difficult to attain are typically more valuable, the availability of an item or experience can serve as a shortcut cue to its quality.

In other words, the less available and more in demand you are … the more prospective investors will want your business.

On the opposite end of the scarcity spectrum is desperation.

And that’s most business owners fundamental problem.

So, how do you get real-world decision makers fighting over your business, instead of being forced to fight with them for theirs?

Four keys …

Identify your ideal investor.
Target not one, but an entire network of decision makers.
Pitch directly to each prospective partner.
Herd your investors … be a cowboy.

[Is there a “secret” fourth step that you could reveal? Something that drive competition and puts the client in the driver seat? Something related to urgency and scarcity?] YES! BE A COWBOY => Herd the investors. If some investors are moving faster than the rest, throttle them while hurrying the rest of the pack. When multiple investors are trying to squeeze through a gate designed only for one of them, the competition is ON.

[This is only the outline for the article. Please check again for the full content. We intend to publish 1 article every month.]

The post Competitive Bidding: How to Get Decision Makers Fighting Over Your Business appeared first on Stern Ventures.

And nowhere is this more true than when it comes to raising capital for your business.

Capital costs.

This means, whatever your growth goals are, it’s vital that you understand exactly what raising capital will cost you: in the short term … and the long.

To help you determine the cost of your capital, here are five questions to ask and answer before you accept a dollar.

1. What is your investment objective and time horizon?
2. What value add do you provide aside from capital?
3. What type of board representation do you expect?
4. Why should we choose you as an investment partner?
5. Why have you chosen us?

Importantly: who are three executives I can call to learn more about your partnership with them.

[This is only the outline for the article. Please check again for the full content. We intend to publish 1 article every month.]

Resources:

HBR – Do You Know Your Cost of Capital?
HBR – A Refresher on Cost of Capital

The post The “Cost” of Capital: What You Need to Know about Financing Your Growth appeared first on Stern Ventures.

Data on too much.

Data on too little.

The only way to be sure you’ve set your ideal capital-raising goal is to have a clear set of objectives, a realistic timeline, a robust network of investment partners, and a systematic approach to targeting the right decision makers.

1. Your Objectives
2. Your Capital Requirements
3. Your Timeline
4. Your Network of Partners
5. Your Targets

[This is only the outline for the article. Please check again for the full content. We intend to publish 1 article every month.]

Resources:

HBR – Focusing Capital on the Long Term
CCM – How and Why to Set a Breathtaking Capital Campaign Goal
Inc.com – Answering the Tough Questions

The post How Much is Enough? Setting Your Ideal Capital-Raising Goal appeared first on Stern Ventures.

There’s nothing more painful than being tied to an institution or financial partner who places their own interests ahead of your own.

From misaligned goals to competing interests to heavy-handed management, the risks are high … but so are the payoffs.

That’s why I’ve put together this 10-point checklist — backed by [X] years of industry experience and an over $250 million track-record of success — to help you identify the right strategic investment partner for your business:

1. Business Goals: Yours … and Theirs
2. Industry Alignment
3. Clear Expectations
4. Management Structure
5. Current Investments
6. Past Investments
7. Downstream Development
8. Upstream Development
9. Legal Pitfalls & Due Diligence
10. Exit Strategy

[This is only the outline for the article. Please check again for the full content. We intend to publish 1 article every month.]

Resources:

HBR – Managing Investors
HBR – Simple Rule for Making Alliances Work
Inc.com – How to Choose the Right Investment Banker
Inc.com – Five Tips for Selecting an Investment Partner
Forbes – Five Clauses Every Partnership Agreement Needs
Entrepreneur – How Can I Find a Partner Who Can Invest in My Business?

The post A Guide to Finding the Right Investment Partner: Your Ideal 10-Point Checklist appeared first on Stern Ventures.