CAPITAL RAISING TIPS & TRICKS – Q & A

Based on some of the main questions we get on raising capital, here are some tips and tricks to successfully do

so.

3 Fundamentals of Capital Raising 1) Meet in person as often as possible. Jeffrey Gitomer lesson – life

is unfair and that is great news to those with friends. It is also said that in 2 years you will be the result of the 5 closest friends and business friends around you. What 2-3 key investor friends would push both your personal development and capital raising to the next level?

2) Be persistent, but respectful. Most marketers and capital raisers give up after 2-4 attempts at reaching or selling an investor. Most investments are made after at least 9-12 follow up attempts. Robert Cialdini’s work on influence and persuasion shows that after 5-7 attempts you become “familiar” and more influential. It is interesting that psychology shows we can only hold 5-9 pieces of information at a time. It could be that, simply due to mental capacity, we have to form an overall opinion after the first 5-9 touches because we can’t store every individual time that we have engaged with that person.

3) Constantly improve. Constantly push to the next level of evolution within your marketing materials, marketing knowledge, CRM system, your authority status, and connections.

“How do we get started?”

Select Your Target Market, Your Niche, Your SandboxThere are many ways to doing this, including differentiation through Geographic Location, Service, Industry, Asset Level Specialization, etc.

Some examples:

A Germany Family Office in New York, serving only German families.

The Billionaire Family Office, serving only billionaire families.

Offering a Wine Fund, Commodity/Energy Fund, etc.

“How should one choose a focus?”Think of these three circles:

What is in your DNA naturally, what you are passionate about, and what can be profitable for you, where you can make money?

Once you’ve determined that, you should be able to find an area that fits where all three intersect. Think of your sandbox in terms of the investors you target. Who do you want to target that fits where these three circles meet?

Natural

Passionate

Profitable

“To generate traffic online, is it best to post to just your own website, or should you post to others as well?”

Post on them all. If you want to rank for a specific keyword on search engines, ensure you get in front of them by offering content based on what you think your target market is looking for.

Anywhere in the world and in any market, your capital raising efforts are essentially educational marketing. To do that successfully, you need to:

1.) Focus more on asking questions, rather than pitching.

2.) Always identify prospects who are already qualified. This could be people who got their wealth from your niche, for example.

“What is a Family Office?”

Proceed to the next slide to start a brief introductory video on family

offices:

“Are family offices staying away from investing funds and investing in one-off deals?”

In the past, maybe 20% of FOs were investing in operating business and direct investments, and ~30% wanted to. Today, ~25% are direct investing in operating businesses, but 60% want to. Most of the capital is where is used to be, but the desire has changed. This is mostly due to family offices not being connected to deal flow. There is a large due diligence process and there’s a lot that goes into making this a challenge. It might take them 3-5 years to make their first acquisition.

Traditionally, ~15-17% of a family office’s portfolio might be allocated to PE and HF, and 15-30% (depending on the family) to RE, some money in public markets in long only funds, ETFs, mutual funds, bonds, and some other RE/AI. With the trend swinging more toward direct investments, all that means is that some of that money will be siphoned off to go into direct investments. This sort of investment is not something taking place as an instead; family offices are not going to get completely out of HF/PE and only do direct investing.

“Are family offices staying away from investing funds and investing in one-off deals?” cont’d:

There’s many areas like commodities, lower middle markets, international opportunities, etc., that present a lot of value to be had in working with a PE fund. You can’t be skilled in every niche, so there needs to be some leverage on other experts. This is why family offices will not be

Don’t be dissuaded or too excited by news or trends.

“What next?” Implement 7 Proven Capital Raising Strategies:

1. Apply Copywriting Best Practices – use language that entices

people to act,

and helps to convey your expertise and trust-worthiness.

2. Identify Choke Points – what is holding you up?

3. Develop your Investor Avatar – know who you’re

marketing/targeting.

4. Become a Scarce Authority – be educated and sought after as an

expert.

5. Capital Raising Automation – get in the mode of automated reach-

out.

6. Speed of Implementation – do and act quickly to make changes.

7. Be THE #1 expert in your sandbox – people will come to you for

your niche expertise.

Get in touch. To your success.

Richard C. WilsonCEO/Founder

Family Offices GroupRichard@FamilyOfficesGroup.com

Team@FamilyOffices.comPortland, Oregon

1.212.729.5067

Thank You – Questions?