Thursday, August 26, 2010
Networking--Take Them With You on the Entrepreneurial Journey
I see many companies go through the fund raising process. Without a doubt the ones with networking skills come out with checks more often than those without networking skills. Most investors are found through the networking process and even more importantly those relationships are nurtured through good networking practices. Entrepreneurs seeking funding need to apply their networking skills to the fund raising process just as they do to other areas of their business.
In fact, even before you go out to raise funding you should begin the networking process. When you identify an investor -- ask to put him on your list to keep him informed of your progress. As you make progress send out a short email (say once a month or quarter) with an update of accomplishments.
I advised a local gaming company to do that and when I received their first status report, I was blown away by the accomplishments they had achieved in the past few months including downloads, subscribers, product developments, awards, and more. Had they not sent me that report, I would never have suspected they had as much traction as they did. That’s the key to networking -- making contact and keeping those contacts with you on the journey.