Competition is the cornerstone of any business. And what drives competition is simple: supply and demand.
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.
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