You're Entertainment

 

One thing few entrepreneurs realize when they receive angel funding is that the role has changed from salesperson to entertainer.

 

The angel investor is using money that would otherwise be used on entertainment, not investment dollars. The money used in angel investing is money that's left over after the children's education, retirement, spouse, mistress, etc. has been paid for. This is not cash that the investor should need for anything other than entertainment.

 

Thus, the entrepreneur's new role is to tell stories about what's happening with the angel's money. Tell the angel investor about the 6 am wake up call, to make the 8 am flight, in order to have the 10 am meeting, while the investor was a home. Talk about the midnight phone call and what was going on and the business that was transacted, while the investor was asleep.

 

The key role for every CEO, or anyone who received investment financing, is to keep lines of communication open. When you clam up, the angel's worst fears will be realized. So write emails, blog, send out letters, make phone calls. Do what it takes to continue the sales job that you started. Most angels will have additional resources to help you succeed, if you let them.

 

When people no longer know what you're doing, then they can't help you.

When you come to them, out of the cold. It's a hard ask to make, and a hard one to supply.

 

So keep the network alive, make sure folks know where you are, what you're doing, and what the next step you're taking will be.

 

Having the right answer is not enough. Being listened to, and being a trusted source for the right answer is necessary in order to succeed.