The Plight of a Seeker of Venture Capital

In this hectic day of Internet frenzy and "dot com" companies sprouting up all around us¸ the "bootstrap" entrepreneur assumes that venture capitalists will beat a path to his door to readily invest in his business. Those days are not yet gone¸ but are rapidly disappearing.

Venture capitalists see thousands of business plans over the course of a year. Business plans are like résumés. Your résumé is your executive summary. You have to grab the investor's interest almost instantly. Remember what they taught you in high school - keep it simple.

To understand the perils of marketing¸ think about how most people invest. Where do they invest? In companies in which they believe. Conservative investors choose companies that will be around. Aggressive investors invest in companies in which they have confidence. Both believe those companies will thrive and survive.

When trying to obtain capital¸ keep the following questions in mind:

1. What impression do you make when you appear to have invested very little in your own business - in your brochure¸ offices¸ business cards¸ presentations¸ and advertisements? You are saying you are lacking confidence in your own enterprise. You are not confident enough to invest in yourself.

2. Is your dream of a owning a business and selling it for a quick buck to your advantage? If so¸ venture capitalists sense this almost instantly. Slow and steady wins the race almost every time. Remember who won the race between the tortoise and the hare - the tortoise.

3. Is your business just a job or a passion? Are you having fun? Are you finding work is actually play? Do you think outside the box? If so¸ you are definitely on the right track.

Looking for capital is similar to mining for gold. You have to invest in the right tools to find investors. Search engines, special directory sites and web sites that are tailored to matching investors with entrepreneurs are crucial to your success¸ even if it comes with a fee attached. (Hint: Angel investors¸ advisors¸ intermediaries and venture capitalists look at these listings on a daily basis.) "Follow the herd" is what a friend told me to do long ago.

As the old adage says¸ "There is gold in them there hills". Mine for it. Just do it.

What happens then? If you¸ the person who knows more about your company than any prospect¸ could lack confidence in your business¸ why should your prospects put any faith in it?

They should not and they do not. If you believe in your business¸ show it!

Interviews are meant to sell yourself¸ regardless if they are for a new job or a possible investor.

Stewart Hobden is President and Co-founder of Businessmatch-maker.com and is a regular contributor to Businessmatch-maker.com