The only way to move forward with any project, especially if it’s an intellectual property, is to make sure that everything you say about it is 100 percent true.
Investors look for investments that have little or no downside risk. When an investment opportunity is presented to a qualified investor, the immediate reaction will be to determine the risk.
Of course there’s a risk in everything we do. There’s no such thing as a ‘sure thing’ when it comes to making an investment; therefore the element of risk is always present.
The presentation of the investment opportunity must contain information that is check able, reliable and accurate in all respects.
Information that may contain potential profits must be put forth in such a way as to indicate the source of how the numbers were derived.
The opportunity to earn a profit is the driving force behind any investment. Investors do not want to lose their hard-earned money; however, at the same time, qualified investors are willing to take a risk based on the overall aspects put forth in the investment package.
Notice I keep using the word ‘qualified’ when speaking about investors. That is the single most important element when seeking funds to finance any project. If the potential investor is not pre-qualified as being financially able to finance a project, presenting an investment opportunity to him or her will turn out to be
an exercise in futility.
Unfortunately the world is filled with opportunists who are nothing more than ‘pretenders’ when it comes to being able to fulfill the financial needs of someone who is seeking an investment. Pretenders have an uncanny ability to lead someone seeking a qualified investor on a wild goose chase. The pretender pretends he either has the financial ability to finance a project, or, alternatively, pretends that he has the financial connections to get the job done.
Someone seeking funds for a project is likely to be taken in by a pretender because of his or her desire to achieve success inasmuch as being funded is concerned. The longer someone has been searching to find a qualified investor, the more likely that person is to fall prey to a pretender.
Why do pretenders pretend they can either finance a project or arrange to have a project financed if in fact that isn’t true? What advantage is there for a pretender to pretend when in truth he cannot perform?
The answer is simple. The pretender who himself has nothing going, will run with the package put forth by the person seeking funds in an attempt to arrange the funding and thereby cut himself in on either a finder’s fee or possibly a piece of the action, or maybe even both.
The pretender uses the hard work the person seeking funds has put into packaging his idea in many ways. Many times a pretender will tell a potential investor that he was behind putting the project together in the first place. We must remember when we do business with a pretender that pretending is his stock in trade.
Almost 100 percent of the time, doing business with a pretender leads to nothing more than a loss of time and money. Many times it can even lead to heartbreak, depending on the emotional attitude of the person
So the name of the game when seeking a legitimate investment is to qualify the potential investor. You must be sure that the potential investor you speak with has the financial ability to back your play.
Once that is done, if you have packaged your project in such a way as to eliminate or cut down the downside risk,you may be successful in obtaining the funds you seek.