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  • Wealthy mentor wants to help

     Deborah updated 1 year, 9 months ago 2 Members · 2 Posts
  • Deborah

    December 10, 2020 at 10:37 am

    Been a small business owner for the last 18 months.
    About 650k TTM revenue – good margins. We are an e-commerce company and run fairly lean.

    I met with a mentor yesterday. He’s been a good resource over the years. He keeps saying if you need anything let me… ANYTHING…

    I’m pretty sure he wants to help out financially but doesn’t want to be presumptuous.

    How do you ask rich people for money?

    I don’t think he wants equity (he alluded to this)— he’s a really altruistic guy. Retired and wants to do some good for the world.

    Last year he gave 1M to a non profit. His name is on the building lol — but he’s also a capitalist.

    I can’t get a read on the situation.

    I’ve always lived by the mantra, “when you ask for money you get advice… when you ask for advice you get money” … this, so far, has been a good strategy but now I need money.

    How do you broker deals with Angel investors?
    What kind of terms should I be thinking about?
    How would you approach?

    Thanks for any advice.

  • BizCoach

    December 10, 2020 at 10:37 am

    You could ask him for advice about how to raise money. But it doesn’t sound like you need it. I’ve been an angel investor and head of an angel investing group. I can tell you very few companies benefit from this kind of investment (based on the business model and other things the entrepreneur can’t control). And many companies are harmed by it.

    If you don’t know the kinds of terms that are offered and that kind of stuff you’re liable to waste a lot of time (at best) and get screwed (at worst).

    If you are a lean, profitable company doing 650K in revenue – first I congratulate you for looking at TTM rather than ARR. It’s a healthier way to judge your company. You’ll probably grow slower by growing organically but you’ll own more of the company and be in control. This won’t happen if you take outside money.

    DM me if you want to talk more.

  • truelies-the2nd

    December 10, 2020 at 10:37 am

    Then ask for advice from him and let him offer to help you financially

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