We just got de-indexed by google, and I’d like to vent my frustrations and thoughts on this blog. This de-indexing is the second in as many months and brings up two important questions.

First, when will Google fall? History doesn’t leave any big dog standing very long, every empire has fallen at some point. So when will Google’s reign end? They just settled the click-fraud case which hurt their reputation big time. They’re fighting several battles in court and trying to keep a secret.  It’s a like/dislike relationship:  we like them when we’re indexed, and can’t stand it when we’re not!
Second, and more important, is how do we survive without Google? When they de-indexed us, a lot of our traffic dove to the floor. Same thing when our Adwords account shut down temporarily. In some marketing areas, we use Google like a man with a broken leg uses his crutch; it’s hard to move without it. I imagine that some other company will step in and take their place, but who, and will they be as effective?

Third, and most important, Trent: Miami in seven. Go HEAT!!!

Point of purchase displays entices consumers, leading them to make quick, impulse decisions about a product. Entrepreneurs sometimes take a similar approach anxiously rushing investors. Rarely is there a need to feel rushed or pressured.

Due diligence brings potential problems to the surface. Performing effective, thorough due diligence before investing, can prevent losses and may lead to deals that increase the value of your investment portfolio. For the more experienced investors this will serve as a review, but for investors who are new to the scene you may want to take notes.

At this critical point in the investment process ask/investigate the following:

• Does the team have specific knowledge and experience that make them appropriate for this venture? Can you trust them?
• Is there a good market opportunity?
• Does the plan show a detailed understanding of the potential customer?
• What is the unique offering behind the plan?
• Does the overall business model make sense?
• If they exist, how does the company plan to displace firmly established competitors?
• Have advertising, promotion, distribution channels and strategic sales costs been assessed accurately?
• Are the capital requirements, growth, and profitability reasonable?
• Does the plan show attention to detail and form (correct spelling, grammar, and punctuation; good organization)?

In addition, two important question often arise during the due diligence process. First, what is the risk associated with this investment? Second, does the potential for success outweigh these risks? After these questions have been answered you can begin to make a decision about funding a business.

Check out FundingUniversity for details on the documents, assessments and interviews that should be collected/conducted as part of the due diligence process. As a reminder, areas which should be heavily researched include:

• market, customer, sales
• product/service offering
• management team
• competition
• financials

Good luck!

The FundingUniverse.com Team

A perfect pitch can be the lynchpin in your quest for funding. It plays a huge role in whether you will receive additional contact/feedback from an investor, so FundingUniverse.com has come up with Three C’s of Effective Pitching. If every part of your pitch doesn’t fit the three C’s, a potential investor may pass you by. The three C’s are:

Clear

Keep your pitch free from distractions. Your ability to clearly present your business idea allows investors to focus on your plan rather than trying to understand something that was ambiguous. To present your pitch clearly you should:

• Be prepared. Bring your own power cords, projector, a working prototype of your product, and anything else you need to make an impression.
• Videotape your pitch. Watch yourself with a critical eye. Have friends watch it with a critical eye. Make the improvements. Have more friends watch it. Make improvements. Have more friends watch it. Improve. You get the picture.
• Be honest about weaknesses, but positive about your potential. No enterprise is flawless, and no repudiated angel will expect it to be.

Captivating

A little excitement can gain the attention of potential investors. Angels don’t consider pitches that bore them. This doesn’t mean you should turn your pitch into a circus, but the following rules can help you get your point across:

• Research your audience and their concerns. What factors will help determine how they will respond to your pitch? What’s their age, their gender, their socio-economic background? What have they invested in before and what are their interests now?
• Take notes while the other members of your team are presenting. Then use your notes to rewrite your pitch later.
• Be observant and responsive the reactions (verbal and non-verbal) of your audience.
• Make vocal fillers (um, eh, like, etc.) your number one public enemy.

Concise

An effective pitch contains no fluff. The pitch options presented above don’t leave any room for the non-essentials. Extremely impressive pitches leave the investor time to question you thoroughly, assess your potential, and grab a donut.

At the very least your pitch should include the following:

• Company’s name
• Business Cards
• Product/service
• Current success
• Market opportunity
• Any other genius your company has to offer (i.e. a management team/advisory board, a great network, a great location, etc.)

For additional pitching tips visit FundingUniversity.

Entrepreneurs searching for funding need more than money; they need guidance. Excitement about a business idea can make some entrepreneurs blind to the roadblocks and shortcomings in a plan. As an experienced investor you have the ability to guide an entrepreneur to success without investing a penny. You can be a mentor.

What makes you an ideal mentor?

• Knowledge of the Business World

You have first-hand knowledge of what it takes to succeed in business. Freely offer this advice to those who could benefit from your knowledge. An entrepreneur may have an incredible business idea, but they may lack the business knowledge that you abundantly possess.

• Contacts/Connections

Access to your contacts and connections can also assist an entrepreneur. In Tim Sanders book, Love is the Killer App, he explains that in business sharing your knowledge and network is critically to success. “Relationships are the nodes in our individual network that constitute the promise of our bizlife and serve as a predictor of our success.” You have the ability to provide these critical links.

• Experience with other Entrepreneurs and Investors

You are in a unique position. You have seen what makes an entrepreneur successful and what doesn’t. The advice you provide may prove to be the tipping point in the business life of an entrepreneur. Why? Because you know what other angel investors are looking for. You have the ability to open the eyes of an entrepreneur allowing them to see like an investor. With this knowledge an entrepreneur can take a business plan from average to extraordinary.

You may be asking yourself? Why should I offer my advice to an entrepreneur who I am not sure I want to invest in? The answer: better deal flow. If you mentor ambitious entrepreneurs your access to supreme deal flow will increase. Collaborating with entrepreneurs provides opportunities to see many different types of deals allowing you to pick which investments suit your taste. You will have access to more solid connections which can lead you to the most advantageous deals. In addition, the good Karma flowing in your direction may help you in landing your next big deal.

Some of you may be hesitant to offer advice/guidance to entrepreneurs. You may think an entrepreneur will take advantage of the opportunity taking interest in the money not your advice. To avoid this, be upfront with the entrepreneur. Explain that you are willing to help them with their business plan, but at this time you are not interested in investing; you are merely trying to help them put their best foot forward. If the entrepreneur understands this from the beginning, they will not be disappointed when you choose not to fund the plan. Who knows maybe after working with the entrepreneur and helping them along, the business plan may be more appealing and you may decide to invest.

Running a start-up often feels like a lonely one-man voyage, but it doesn’t have to be. There are willing mentors who can help you along the way — people who can point you in the right direction and focus your efforts. Following the guidance and advice from angel investors and successful entrepreneurs can mean the difference between success and disappointment.

Angel Investors

It is not coincidental that these investors are called angels. Because of the success many angel investors have experienced, it is easy to forget many of them were entrepreneurs just like you. Angel investors can provide you with additional contacts or connections, critique a business plan, or provide glimpses into the investment world.

However, if an angel investor is willing to provide advice this does not mean they are going to invest. We suggest you approach angel investors with the sole purpose of receiving advice and feedback rather than funding. If you approach the situation in such a way, investors will be more inclined to provide you with guidance you need. Angels who have played a role in building your company are much more likely to invest when the time is right, especially when the entrepreneur has demonstrated humility and teachability.

Successful Entrepreneurs

There are successful businessmen who have traveled the same path you are traveling. They faced the same challenges and struggled with the same issues you currently face. Many company leaders willingly discuss their road to success. Take advantage of this! Go to business lunches and events where experienced entrepreneurs will be speaking or set up a time to meet with them. Again, it is important to maintain the attitude that you are genuinely looking for advice rather than merely using them as a stepping stool to obtain funding. Follow their advice and the funding will come.

To summarize:

Benefits of having a mentor:

• Business plan advice
• Pitching tips
• Contacts/connections
• Business experience
• Provide realistic expectations
• Tips and hints about industry, market and competition
• Standards for particular industry
• Life lessons

Good luck!