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-So the final thing is how to get funding, which can be a huge game changer for you. Now the one thing I'll clarify again is the people who have made it to the top, who have the money to fund-- so we go up, we imagine we're going up this mountain here. At the top of the mountain, these are the guys funding.
Now I can say in a very small, limited way, I'm probably-- on Mount Funding, I'm probably like here. And I say that because I do invest in businesses. I have little rules that my wife and I've developed now.
But I really won't invest in any more businesses again, at least for the next, probably, four or five years. Because when I invest money, I now have to care. Which means it's another voicemail I have to check. Another text message I have respond to. Another guy I've got to meet with. And so I'm just kind of, nope.
Now banks though, and funding institutions, they make their money by funding. So they have all these filters. So if you remember the strainer. You got the strainer, you're making some macaroni. And you got the strainer. And the point is, you put the macaroni in the thing. And you shake it, and water comes out. And then what's stuck, what's left in the strainer is hypothetically macaroni.
They have a strainer. I'm probably spelling it wrong. But a strainer-- they have a series of things to say, should we even spend our time here? Because remember, they make their money off of funding.
So in the same way that like Elephant In The Room, the men's haircut place I work with-- if you're not a dude, you can't come there. That's our strainer. If you're not a dude, you can't get your haircut there. Why? Because it's a men's only grooming lounge.
Two, if you're not a dude over the age-- I think it's like 14, you can't get your haircut there. Why? Because it's for men. What else? If you don't pay us, you can't come back.
OK, what else? If you curse while getting your haircut, if you're just dropping F bombs everywhere and you're difficult, if you make unprofessional comments to the ladies who work there, you can't come back. It's like a strainer of rules to keep people from coming back that we don't want.
One, if you send me a packet, and that packet is more than 20 pages, I'm probably not going to look at it. 'Cause it's just going to make me cry. And I'm going to go through the strainer here of the reasons why people won't fund. OK?
So one-- and this'll be on page 2 of your packet there-- if you are taking a sabbatical from grammatical, if you're just a grammatical disaster, I'm not going to do it. So, you see this all the time. People will send me a packet wanting me to invest in their business. And they don't spell anything right, or very few things right.
Well, the problem is, again, anyone who's at the top of the business food chain is extremely detailed. I'm extremely detailed, but the people who are making more than I do are so much more. And I like-- every time I go up the food chain a little bit farther, a little notch, I've run into people who are even more fastidious than I have ever been. And I always thought that I was pretty fastidious. It's unbelievable. They're just so detailed. So if everything's spelled wrong, we're done.
The second is if the team appears to not have what it takes. If your team-- like if the guys who are on your team-- appear to be rookies. Really no one's had any business success. Nobody's ever been an entrepreneur. Nobody knows what they're doing. Nobody has any skills that are needed. I'm just going to say no. The same reason-- I would say, I'm still interested or yes, almost, based on your
Thrive15.com is your business game changer
[MUSIC PLAYING] -So real quick. I'm going over these in order, though, so you can see the most important. It's a higher [INAUDIBLE] here. The most important, though, is the grammar first. Then the second is, I'm going to look-- I'm going to skip in your business plan to the part about your team. I won't even read your plan. I don't care what your plan is. I will look at your team. That's where I'll start. It doesn't matter what order your presentation is. I will start at the team. Now the third thing is that if you're solving a problem that the world is not willing to pay for, I stopped paying attention. So assume that I like the team. I'm like, appears to be nice. The team, OK. We've got a genius on the team here. We've got this guy went to this-- this guy has this-- this guy's whoa, wow. He has Bloomberg on his team. OK, I'm interested. Now solving a problem that the world doesn't need. So with your company, Helping Hands, if I'm like I see that all the time. I can totally see where people would want to help their parents out. OK. Or if I'm like, what is he talking about? Then that's kind of my litmus test. The fourth thing is if the supporting research is weak. So if the supporting research, if I look at it, and you have research in there, but it's all based off of-- if you're like, my buddy Greg at Wal-Mart told me that 7% of the people he knows need this system, need this service, need this product. I don't know that I'm going to be funding anytime soon. The fifth is a refusal to acknowledge the presence of competition. Almost every business plan that has ever been sent to me for funding or somebody wants me to invest in them, they do not acknowledge they have competition. I don't have any competition. The competition is ourselves. I don't have any. I'm revolutionizing the way that-- everyone says this. I'm revolution-- You have to have competition. And showing that you don't have competition lets me know that you're delusional. You know, so Space X. Space X is now basically filling the role that NASA used to play, sending rockets to space. When Elon Musk started that, he had to know there were other people doing it. Who? The Russians. The Russians are making rockets. Who else? Well, Jeff Bezos is doing some space stuff, you know. And so he starts to go, OK, who are all the people in this space. You have to acknowledge your competition in this document. The sixth is over estimating the size of your market. Overestimating the size of your market. If you say, well, I've done my market research, and my company's a $2 trillion business. Why? Because everyone's going to die, and they're going get old first. So I'm going to sell to everyone. And that kind of just, it hurts. Point seven, the plan is mind bogglingly detailed and hard to understand. If your plan is more than 20 pages, not everybody, but a lot of people won't look at it. So if your business plan is like 45 pages, then it's going to be hard. The next one, point number eight, kind of the opposite of that. If it's way too vague. Like some guys come with a four page plan. Well, we're going to market pretty much word of mouth. And our product is very good. And I need a little more detailed than that. Point number nine, trying to appeal to everyone. If your price point is-- if you're trying to tell me, I'm trying to offer the best quality service possible and the cheapest and something that Democrats will love and something Republicans will love and something that entrepreneurs will love and something that business people will love and something that Muslim fundamentalists will love and Christian fundamental will love, and everybody in the world will love it. Outside of like Google, there's very few examples of those that work, you know? So Mercedes specializes in products for affluent people. Whole Foods is for people who are really health conscious. You've got to find your niche and be able to describe to the person you're pitching to what-- so who you are trying to appeal to. The next one here is using industry jargon. If you load it up with a bunch of jargon, a bunch of acronyms, or a bunch of abbreviations where no one knows what you're talking about. Some of my buddies who used to be the military, when they come out of the military, they forget that maybe not everyone speaks in those acronyms. So on their resume-- A buddy of mine. His name is Cory Mentor. He's one of our Thrive mentors. And Cory has a staffing company. And he said that most of the military when they get out of the military, on their resume they'll put a lot of military jargon in their resume. Well, a lot of employers don't know what that means. So same thing goes when you're doing a business plan. If you have all this jargon in there, and I don't know what you're talking about, it's very hard to get through it. The next one is lacking the confidence. If you get up there, and you're like, well, you know, what do you think? Well, here's the problem. I'm hoping that you would have thought about your elevator pitch, your name, your logo, your competition, your one sheet, your differentiation, your marketing, your team. I would hope-- your PR, your break even point. I would hope that you've thought of everything. Or at least close to. Preparation builds confidence. The more you prepare, the more confidence you have. Basically luck is that merger of the preparation with the opportunity, you know? And a lot of people, they get in front of you, and you can tell they've never done their own figures. So you want to just own this whole space. And if you're confident, that's usually because you have prepared.
[MUSIC PLAYING] -All right. It's very, very important that do that. The next one is claiming to be the world's first free risk venture. So on Thrive we've got investors. Talked to a guy this past week, and I talked to him, and when people invest in Thrive, I said, here's the deal. If you put money into Thrive-- whoa! Sorry. If you put money into Thrive, and you invest in this, we could lose it all. All of it. Every dollar you put in could just disappear. Now, when you look at the team, nobody on the team has done that before. And we're all a bunch of honey badger's, and we're not going to it. But we could. So is it secured? I mean, if you invest, do you get collateral? If we lose money, do you get my house? Do you get my car? Nope. What you get is pissed. That's it. So, I hope that that's good enough for you. But there is risk. And the risk is we could lose it all. So I talked to one investor this week, and he wants to put money in Thrive. And he says, well, how is this secured? Uh, you're looking at him. And I have a life insurance policy. So if I get hit by a bus, this is how much everyone gets paid. That's my security. There's no security. Marketing is missing. If you don't have-- this right here's a pretty detailed plan. If you have a detailed marketing plan, that let's me know you've been thinking about it. If you don't have a detailed plan, I'm kind of-- and most business owners tend to say, well, you know, I'm going to market mainly word of mouth and social media. People love this. The two people love to say right now. I'd love to market via social media and word of mouth. Well, how specifically? I don't know that yet. But that kind of thing. Point 14, the financial portion of your plan is entirely missing. So you've got to have your financials. Make it easy for me. And then the final thing to avoid is-- final mistake people make is it's not a plan at all. It's actually not a plan, it's just a series of information, but it doesn't explain how to get from A to B. A plan is supposed to teach me how to go from point A to point B. Make sense? It's not a report. It's a plan. Like, this is how I'm going to get from A to B. So once you have all this together, and you've taken the Pitch Hacks-- Pitch Hacks has the best formula in the world for business plans. It's the best. Once you follow the Pitch Hacks formula, and you've gone through these, I have two recommendations for you. One, I would recommend you would call Guidant Financial. G-U-I-D-A-N-T Financial. Or companies similar to Guidant. But what Guidant will do is, you'll give them all this information, and they will look at like 300 or 400 different lendors-- small business loans, bankers, 401K rollovers, private equity guys, angel-- And they'll basically go for you, and they'll come back and say, hey, David, here are five different options that we think might make sense for you. That's where I would start. That'd be my option one. Then my option two is I would begin to make a list of, basically, individuals that you know that-- then again, this is after all this is done-- but individuals that you know or that you're kind of on the peripheral. You don't maybe know them, but it's kind of like you have a list of people that all bank at the same bank that you bank at. And they all have a high net worth. And I would systematically call them and try to set up presentations. But that's what I would do. Because if you call Guidant Financial, he doesn't make any money-- those companies like Guidant, they don't make any money at all unless they actually get you a loan. You see what I mean? Their whole job is to help small-- like they funded I think 10,000 small business owners, $4 billion of them over the past six, seven years. So they don't make any money unless they get your money. And while they're looking, I would also begin talking to those individual groups. Make sense? -It does. -Now what questions would you have, though, about how to do that? Because in my mind, once you have all of this, then when you go to Guidant, they're impressed. Or when you go to those individuals, they're impressed. But what questions would you have about that? -What's your opinion on crowd funding? -Any time you can get funding without losing control, great. So I'm not going to say, you have to have an angel investor. I'm not going to say, David, you have to do crowd funding or you have to get a bank.
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