Teaching Growth at Rotman University, to the top entrepreneurs of Canada is a privilege and I enjoy it greatly. Yet, I was stunned when one of the $3M revenue business owners chatted with me.
“I have to get some money. How do I get some money?” that was the opening sentence to me. She put on a cute, begging face – my kids used to do that to me when they wanted to go to MacDonalds and get the kiddie meal with a toy.
She said, “I am so disappointed with the banks and BDC, they will not give me a loan. I have been a client of theirs for years; I wrote them a letter giving them a piece of my mind. What do I do with finance people like that who just do not get it?”
I was exhausted before we even began.
This business owner had a copy of my book, Money Magnet, on the desk in front of her, yet had not flicked through it before speaking with me. Even one page would have given her more of a clue how to connect to finance people. For her, it was all about her and this ghastly situation for her. She may have realized that her company was actually attractive to Angels as she has good cash flow. She is also passionate about what she does. Double points.
Business owners talk like this to finance people who have access to a great network of potential investors. This owner had given me a huge message about her style. Why would I put Loewen Partners' reputation on the line by making a call? If I did that favour, pretty soon, no one would pick up my phone calls. I asked her if she had a business plan. Nope. An income statement - maybe. OK, now we were making positive inroads.
As I probed, I could see she had a viable business and would be attractive to the right fit of investor. Since I work with $20M revenue companies and up, she was too much of a "can you do it for me?" type, for me to make any revenues and she would be too tough to mentor. I doubt she would ever touch my book again.
Pass!
Instead, she could have opened with a few sentences (after describing her revenues and market) that would have caught my attention. Any of these would have made me see she had built and sustained a good business. Any of these door openers would have kept the conversation flowing because they are positive and business smart:
Conversation Openers with Finance Experts
1. I have a great Business Model – We do loans for plastic surgery and I have been in business since 1998 and been profitable every year with strong cash flow. Our business has grown by 20% each year.
2. We have a stunning Revenue Model – we have Margins of 60%. With another $200,000, I can add 2 more sales reps which drives the growth. I am looking for an Angel interested in financial services, near to Markham.
3. There is Competition, like credit cards or the banks.
4. Key Differentiating Feature – we have close links to the top 10% of plastic surgeons. So we make sure the client goes to good surgeon who also gives us a good price.
5. Unique Selling Proposition- Secret Sauce – we are niched, focussed on plastic surgery.
6. Addressable market – Can give the plastic surgeons a referral fee to advertise us on their websites and draw in clients.
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