Picture credit: stuartpilbrow on Flickr.

Part of my work with start-up companies includes finding investors and funds. With time you find that somethings works for you better than others. Of course, these are just my impressions. Hope you’ll find them useful:

1. Your Network - As mentioned here frequently before, use your close network of family and friends to find funding. It’s common for many start-ups who started out in their garage to raise the first amount of money with their family and friends, which often referred to as FFF (friends, family and fools) . Just to get a kick start, make a short and clear presentation and gather up your close friends and family(your living room is fine). This idea has 2 main advantages: The first is you have a great chance to present your idea and get free feedback. The second is, and take this seriously – a true opportunity to raise capital from people who will be suportive and believe in your potential. Take this group of seed investors seriously, and you just might be a step from seeing your idea turn into business.
2. Be prepared – You’ve just launched the works on your new start-up, even took a bank loan, or took your friends and family as small investors. You already have a business plan, you just finished developing the first stage of your application or product. You’ll probably need to find more capital, and look for more investors. Before you do anything else, have at least the following, a short 1-2 pager summary of your business. A few really good images of your application/website and not more than a 10 page powerpoint slideshow. No one can review more than that and stay focused.
3. To the next step – Now that you have a short executive summary, a killer (and short!) powerpoint presentation and the money invested in you by those close to you, your ready to move to the next stage. Make a list of(and this will take time), potential new investors. Who should be on this list? Anyone related to you or your friends with financial means. Look for:
   1. People related to financial organizations such as Venture Capital firms.
   2. Private investor groups. In many cases small and medium investors group up to invest in new businesses.
   3. Big corporates in related industry fields, that might invest or collaborate with your business.
   4. Business Development experts, that raised capital in the past, they will cost you but will save time and can shorten the time you spend in order to raise the funds.
4. Be Creative! Aside from the options listed above, you can search for capital in many places you haven’t thought about. Not only big VC firms or financiers can come up with capital for your start-up. It can be anyone with financial means. The same way you can gather up your family and friends to hear about your great idea, you can do the same with any business person you can find. Ask for a meeting with owners of a retails stores, big agencies or any other kind of business owners. In many cases Business owners are looking for new ways to bring added value to their cashflow, and investing in new start-up can be a great new opportunity for them.

In our next posts I wil give some more input on the subject with actual examples from my experience.

There is always an exception, dogs who prefer different things to do with their leisure time-

Just like any network, dog owners have their unique characteristics and common interests (dogs…), and just like any other network, the people in it, are different from one another and have different interests,views and professional backgrounds beside being dog owners. Due to the fact that most dogs like to play and run, many dog owners seek for playing grounds that are safe, and with other friendly dogs around.  These two parameters bring dog owners close to one another, and almost naturally meet in places such as parks, large school yards, and any other place which is big enough for the dogs to run in, and far enough from traffic.

I joined a small group of 5 people, who meet up almost every night at a high school near home. The dogs run and play for about  30 minutes, which is fun to watch and healthy for the dogs. While the dogs socialize between themselves, we, the two legged, have enough time to talk and network. One of the biggest benefits is, you get to meet people you probably would not have met otherwise. This makes it a great way to grow your network of connections – personal and business.

Except for the additional responsibility, having a dog, is fun, enjoyable and can grow your network.

And one last update, here is how to find a dog…

1. Setting up a website can cost as low as $150: there isn’t a bigger mistake for a business than this one, especially for small and medium businesses. In many cases, a business website is the ‘Front Cover’ of the business and your reputation. This is where most of the new clients and costumers first encounter your product. That ‘Front Cover’ of your business should reflect the quality of your product. You don’t have to spend a fortune on it, but have a professional do the job, plan wisely what your site should consist of, make sure the design is friendly, and that all the features work properly(links, payment, video’s, ads etc.). This still isn’t a big cost, and it is of great importance. Isn’t it worth paying a little more on your website?
2. Social media is a waste of time. I will start by how NOT to use social media (Sent by Shooky Galili) It’s rarely heard that social media is a waste of time. I can relate to businessmen who say the haven’t any spare time to be active on social platforms. I don’t think a business owner should be active on more than 3-4 social websites. It can be difficult to keep track. The key here is to start with a small modest blog, where you can update on new products and news. All that with writing no more than one 200-word post a week. Some businessmen such as lawyers already have a substantial amount of content written, and can start by posting it. After the blog is up and running, you can link it to your facebook, twitter and so on. Step by step is a good method to step into social media. An interesting discussion about this issue is happening right now at the Social Media Today group on LinkedIn.
3. Offline Advertisement is dead. Although social media and online advertisement are taking their share in advertising budgets, offline media such as newspapers, radio and TV is still part of our lives, and businesses should consider them as part of their marketing campaigns. When focused on local costumers, radio and local papers still have influence on the market. With local radio stations and papers you could complete your campaign and reach more clients in a relatively low cost. It turns out there is even much to learn from radio. Read more about it on digitaltonto by Greg Satell
4. Online Networking and Offline Networking are two completely different stories. The truth couldn’t be further away from that. On social media, email, conventions and even birthday parties, people behave like…people. Most of us enjoy meeting new people, knowing them and having some kind of a relationship (business, romantic, community..) .  If you meet someone face to face, you first want to know who you’re meeting and what common grounds you have. Then, if it seems reasonable enough for both side, a connection can be made. Online and social media aren’t that different. Our previous post about befriending too soon on Facebook guides you what to ‘do’ and what  ‘not do’ on social media.

I’m sure there are many more myths we all encounter daily. I would love to hear yours, and post them.

1. What to wear? If you are a man, don’t laugh at this point, this is not a fashion tip! It’s important to wear something suitable for the occasion, but try to wear something comfortable for you. If you usually don’t wear a suit, don’t start now, people will notice you are uncomfortable, and it can be interpreted as unreliable. If you are not sure, and there isn’t a clear dress code, try asking a colleague on similar events. Remember, dress code is important, but feeling comfortable around others is crucial.

Sometimes, dressing wrong for the occasion is serving a purpose…

2. Like Actors – Learn your lines! If you are not a people person, and finding it hard to introduce yourself, do as professional actors do, rehearse and learn by heart. You can implement this method by learning by heart, just like writing your CV. Take the highlights of your work and business actions, and shape them into 3-4 short sentences you can say naturally, short and to the point. My personal example I use in events is say: “I’m a self-employed business developer. currently I’m working on…” .Keep it short and interesting. You can finish these few lines by handing a business card and wait to see if people ask to hear more.

3. Rehearse. Practice makes..well, you know. Again, like actors, a good rehearsal is a great help before the real show. The best way to rehearse on networking is only with the real thing. Try finding prior to your event a smaller one. See if you can find a smaller event (there’s always something), even on a different subject before the event you intend to attend. Go to a smaller gathering, where you preferably know a few people, and try approaching people with the lines you remembered by heart. If it works stick to it, if not, you can still adjust them before the important event.

4. Do your homework. Try making the most out of every event. Study the subjects that will be spoken about, what’s up for discussion? Who is going to attend the event? Study these detail and network with specific new people on relevant subjects to them and yourself.

5. Don’t forget to enjoy. Even business events these days have a fun aspect to them (or at least they try). In most conventions there is a variety of people, eatable food and in many cases, drinks. Think of these events as an opportunity to enjoy yourself, with business as an added value. If people will see you as optimistic and positive, it will ease the networking.

These 5 guidelines should keep you comfortable, confident, positive and interesting enough to network effectively to new connections.

In this blog we dealt with how to built your network, and how to make it grow. Assuming you already have a network of considerable size, it’s time to make it work for you, and for your connections. A non-active network, won’t bring any value to your business. Connection won’t last – the next time you’ll need someone from your network you will have to start rebuilding your relationship from scratch.

One of the best ways to keep your network active and bring value to your business, is connecting between people inside your network. As we said before, a network is based on your family, friends, colleagues and associates. Do these different people know one another? And if not, why should they?

Well, the answer is quite simple. I explained before that people connect to people and not to businesses. If you are the one to connect between people, you bring added value to both parties, and will be remembered positively by both sides. By connecting people you you make a good reputation for yourself and people will appreciate doing business with you. A good example is romantic relationships. Ask couples who introduced them to one another, I’m sure they always remember.

What kind of links can you make? The possibilities are endless. You can recommend a talented family member to a colleague looking to hire. You can connect between a business associate to a supplier who is a close friend. Of-course you can use the example in the the first paragraph and establish a new company based on your network connections, Try thinking which of your network connections could fill a position in a new company (sales, development, marketing, finance).

Following Up

Last but not least, when you do make connections, you must bring added value to the new connection between all sides. Don’t just exchange phone numbers or forward emails. Make sure you follow-up on the new connections you made. Phone both sides, get a feedback, explain why you recommended a certain person above all others. Here are a few more words on the importance of follow-ups by Dave Clarke.

Build strong links between your network connections, all sides will benefit in the long run.

I’ll start by advising  anyone who isn’t a user yet, to sign up now. Even If you are not looking for new business opportunities, or looking for a new job, you should consider using this social site. The first and obvious reason is it takes time to build a substantial and meaningful user on any social site whether it’s Facebook, Stumbleupon, a new blog or even Twitter. Linked in is no different in this case. When you will need this application for any professional cause, you would want and need your user to be already active, strong and meaningful so others would want to be connected to you and help you in your business actions.

Well, the first thing after setting your user, is getting connected. As I’ve mentioned in previous posts, you start off with the people close to you. Although most of these people are your day-to-day connections that you meet even weekly, they can become a path to new connection. Start by adding your co-workers as connection, other people you know from places you worked for. You can then add friends and family, for example, I had my mother join Linkedin,and become a connection, and now she is using Linkedin for her coaching business. From here on you’ll have Linkedin suggest new connections you might know weekly. Don’t be afraid offering people interesting to you to become a connection, even if you hardly know them. You never know who would need or want to become your connection.

LinkedIn Groups- One of the things I really found useful is the groups you can join, participate in, get information and read on Linkedin. there are groups on a wide range of topics, issues and subjects. from technology to HR, Sports, SEO ,medical issues though legal groups you will find the group right for you. I would advise not to join to many groups, but join the ones related to your field of work, or topics you want to learn about. pic 2-3 groups at first(you can add more at anytime you want) and start reading what other professionals are saying, get to know the people and even add information of your own. This is a great place to know people and make connection far from your local network.

In my next posts we will review more features that can serve your network of LinkedIn such as recommendations, applications and upgrading your profile.

Well, luck isn’t really the key for success here. A good idea is important, timing people will say is crucial, and of-course L-O-C-A-T-I-O-N (usually said three times). But is that all?

We think not.

As a partner in more than one business I think one of the most important things is to let people know you have a business. It’s not that obvious: most people would think that they need to talk (or write for that matter) about their business only with customers and suppliers. This attitude could be the downside of your business, Let’s review this:

Costumers – whether it’s customers, clients or users you need, they are practically every way you look. Don’t judge the people you meet. Anyone of your friends, family or community could become a costumer (even a paying one). As mentioned in previous posts, most of the people in your surroundings are part of your network, and in this case part of your business’s network. If your business is a store or a user related online website, it means anyone and everyone are your customers.

Make sure to be enthusiastic about your business and tell the story behind your store/company/website to your bar-tender (before the fourth round of drinks), to your friends, their friends, former work colleagues, family and even to the annoying neighbor from across the hall. If you show enough motivation about your business to enough people, be sure, the word will get around.

Suppliers – With a new business comes great responsibility and even greater costs. You will probably need a place to rent, buy office supplies, online or offline storage, pay consultants and maybe even experts. Experts are the same as consultants but cost more . Except for getting a competitive price from your suppliers, you need them to be reliable and supply quality products.

Try to always find  suppliers inside your network, if they meet your standards of course. Suppliers within your network will probably be more convenient about terms of payment and credit, be more loyal to you, and most importantly might speak highly of you to potential costumers or even becomes costumers themselves.

All this shouldn’t be instead of marketing and advertising, but it will make it much more effective, and its really cost-effective.

One last thing, looking for a job isn’t so different from starting up a new business from the networking point of view. We’ll discuss it in one of our the next posts.

I believe that the base of every network, online or not, is the people around you. It doesn’t matter (and this is important) if your network is for business or any other purposes. You should always start with the people who know you and are in most cases fond of you.

Family – a lot of people have a hard time regarding to their family as part of their network, which is understandable due to the fact that most people are used to get a hot meal from their moms and not talk business. The funny thing is that in many cases family members can be strategic connections in your network. The advantages of family members are of a wide range. In some cases it could be your parents that naturally have years of experience in their field of work, or a sibling, an uncle or aunt. The family has two great advantages, they are very approachable when in need, and usually one can find a wide variety of professions in the family.

Of course there are  families who network only in the family…

Places of work – it can be colleagues at your current work, friends from former companies you worked at. People you were their boss, your  former boss and anyone you met while working. This includes people you meet every morning next to the coffee machine, especially if the coffee isn’t that good. Then you really have something to talk about. The advantage of keeping in touch with work colleagues and making them part of your network is that all of you have a familiar background and these people know what you are good at, and in many cases recommend you when necessary. And another thing, most of your colleagues will go through more than one work place in their lives. At some point one of these places could be a business opportunity for you.

Close Friends – how good do you know your friends? Where do they work? What do they do at work?  What did they study? Where did they study? Knowing these details might be useful in the future. Your friends trust you, and enjoy being in your presence, they would probably be more than happy to introduce you to a colleague or a partner when asked.

All these people mentioned here or part of them could be a solid base to start your network. In the next posts we will review more opportunities to growing your network, and share our own examples.