Sunday, July 26, 2009

Asking for Money always a bit awkward (like this fragment). Like we have mentioned in previous posts, the only outlet for fundraising at this point is through family and friends. Seems easy enough - I mean, we're a small quick-service joint and compared to other start-ups, we don't need much. So we put together a nice little package detailing the terms of the investment and planned to distribute to everyone we know in hopes that they would then distribute to everyone they know in hopes that somewhere along the email chain spectrum, someone would be interested in investing. Why did we do it this way? For one, mass emailing is efficient and allowed us to cover a lot of territory. Second, we were able to include important information for easy forwarding. Third, we could put off making awkward phone calls and let the email do the talking. This method, however, has not worked for us. I will be candid - it's a very uncomfortable conversation to have (close family members excluded) because it just seems impolite to ask for money.

What we have had to remind ourselves is that our investment proposal is a potentially profitable one - it's the whole reason we decided to execute this concept in the first place! Of course we think it will be profitable and wildly successful - but for whatever reason we cannot help but feel we are desperately asking people to take a risk. Here's the Saus lesson of the day (something we still have a tough time with): getting on the phone (or meeting in person) and selling your idea is a necessary evil. In entrepreneurship classes they make it sound so darn easy. You sit down in class, which should be called Entrepreneurial Strategy for Idealists 401 and the professors make raising money sound like just another item on the checklist to be crossed off as easily as bananas (what?) on a grocery list. We have raised a decent chunk from family and friends (fairly easy portion) and once we have raised the rest we will share with you how we did it (and I can tell you right now that unless there's divine intervention the SBA won't be repairing itself for a while).

Perhaps making money will be easier. Let's hope.

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