Enticing investors

The absolute simplest way to have investors invest in your particular business project is by bribing them. You read it right.

What many people seem to miss when they meet investors is: How do investors profit? How do they secure their money?

The best medicine in enticing investors to give you the money you need right now is to give them a monthly cashflow from the deal. Nothing speaks better than you giving them monthly cashflow. Everyone can say: "You will get this and this annual return on your money, but you will not get it in cash for years hence. The money will be returned to you in 5 years or so money years from now". Well let me tell you, if you came to me, asked me for an investment in your company and you told me I where to get my money back with a return in 5 years. Then I would tell you "NO, I will not in a million years invest in your company on those terms". Why? Simply, because I don't know if you're company will exist in 5 years. What I do know more certainly is that you will exist in 1 months time (that is more certain). And if I can have only a fraction of my money back in the form of a monthly cashflow from your company, then that would be better odds than having nothing in 5 years.

Wouldn't you agree? Wouldn't you see this as something you would feel would be a better proposition? If you where the actual investor, what would you choose: Little money back every month or all the money back in years with interest (perhaps you get it back), but nothing until then?

Read my next post, which explain what I mean. I will give you a made up example (please don't comment on my lack of detail. I want it as simple as possible for everyone to get this).