Alright guys, today was the day, we closed the deal. We actually have two investors in our company now, the first investor invested $20k, the second investor we just closed with invested $75k. This is the renovatio, the rebirth of beModel.com. Go ahead and check out the video, and below I am going to try and explain, educate, at the best of my knowledge how we raised the capital from $0 to a total of $95,000, with absolutely no business plan. httpvhd://www.youtube.com/watch?v=Ng6f7ZQVm6c
Where I Started
It's strongly suggested you find out where I started and where I am at now by reading my blogs in order, my Young & Stupid series, let me give you all of the links: Young & Stupid: How I Made 2.2 Million Young & Stupid: How I Lost My Millions Young & Stupid: How I Plan To Get Rich. Again. Young & Stupid: The Story Of My Depression
It's a lot of reading, and some of it might seem almost repetitive, but it's the best way to find out where I am, so I can tell you where all of my emotion and energy came from. I basically lost it all, and my best friend & partner came up with an idea, beModel.com. We had no money, no one to just give us money, I've lost all mine already, haha. So our goal was to raise capital in exchange for equity, and that's what we did. The first $20k wasn't as much of a challenge as the 2nd investment, so I will go into detail about our 2nd investment of $75,000.
The First $20,000
I actually describe in a different blog how I raised the initial $20k, you can read the blog here: How beModel Came To Life
The Second $75,000
This was the tough part, after the first initial investment, and the tragedy we went through with the offshore company in India we hired, we were really in for it. We ran out of cash fast, and we need another investor ASAP. With our public launch on May 1st, and the database crash that followed due to security flaws, we lost thousands of users. We knew the only way to get back on track quick, and to fix everything that was done horribly wrong from the offshore company, was another investor. Jamie and I had a vision, I kid you not, we saw and only saw us getting another investor, also known as the Law Of Attraction. I swear to god, if you see it, believe it, and go for it, it's going to fucking happen. I am fucking living proof, I am not a genius, I am not some sales professional, I am not vocabulary skilled with words during presentations. I am shy, I stutter, I just work through it, and give it my best, my absolute BEST. I am probably like almost any other person, but just more driven than you :-P.
Jamie and I back in May, after the DB crash, realized we had to act fast, we acted as fast as we could. We started calling anyone and everyone, talking to our parents, our friends, and trying to find connections to people with money. You absolutely must talk, and talk your idea up, you have too. You ever heard of the elevator speech? Come up with one, it doesn't have to be perfect, but you have to believe in your idea. Jamie and I were kings at talking our idea up, kings. beModel.com? What's that? It's basically going to be the most innovative social networking platform for networking with photographers and models in the industry, with tools that are just unheard of that will simply revolutionize the industry, and change it for good. Our competitor hasn't even touched the surface of what is possible. See, the thing about being an entrepreneur, is you have to constantly want it, believe it, talk it, and reach for it. You have to be stubborn, honestly, being an entrepreneur is being stubborn, I can fucking promise you that fact. Every entrepreneur I know, is stubborn. Here is my simple system for how I achieved reaching what we were reaching for.
Step 1: Be lazy; sit and think; visualize; relax and use your brain Step 2: Being lazy allows you to think, think of an idea, see it, write it down, believe it Step 3: Unlazy yourself, and create it, hire someone, do it yourself, sell your fucking car if you have to, max your credit cards, fuck it. Step 4: Get your paperwork ready, see the files that I created for the investors below (no business plan) Step 5: Talk, push, talk, network, keep networking, ask, find, network, do it.
Building your company from scratch without an investor is a totally different mindset than with one, you must realize this now. If you have the time and skills available NOW to build it all your own, than more power to you. The mindset of an investor is different, you come up with an innovative idea that you believe can make money, and get a shit load of paper work ready, prepare your speech, build a powerpoint presentation, and start networking, not building, but networking.
Let me tell you this right now, Jamie and I networked hardcore, found connections through many friends, met up with many people, a lot of them not interested in the internet business AT ALL, but we didn't give up. I started my new blog, The Renovatio, and posted my blog seeking investors, and I blew up like wildfire. From that one post, I got 5 inquiries all within a week! I barely get any traffic to my blog! The vision Jamie and I held, the consistency, the perseverance, and determination is what ultimately led us to this point, even though it took eight fucking long months.
You want to raise capital for idea? This is how you do it.
How It Went Down
So, I think maybe our 5th investor meeting, this one was from my blog. Yes only 5 investor meetings, but we had multiple phone calls, referrals, emails, line ups, etc... This was probably our 5th presentation, I wasn't as nervous presenting our idea anymore. Jamie and I head down to Cherry Creek to his house, we show up at exactly 3:30 PM. Jamie and I walk in, say hello to the guy, introduce ourselves, and I try my hardest to build rapport. Like I said, I am not the most outgoing guy AT FIRST. We sit at his dining table, beautiful house, and I just pull out my laptop. I get straight to the point, and try to sale our idea like no other. At the end of the conversation, I say how much we need. "Our minimum investment to get going is $75k, and a full investment would be $290." He then proceeds to show interest, like most people do at first. He asked how much equity, return, buyout, etc... At the end of the meeting, it was definitely a positive note, not a NO, not a YES, but we had a feeling he might be interested, but most investors leave you with that feeling anyways... Uncertainty usually. Like a little sense of hope... It's kind of annoying actually, they leave you feeling like they might want to do it, and then end up not doing it. Jamie and I left this meeting feeling pretty positive. He requested an email with some details on the percentage, milestones, and his buyout.
The First Email I Sent Was This:
Naturally, I didn't receive an email right away, actually I didn't receive anything for two days... So I sent this:
The Second Email I Sent Was This:
This email must of been the one that got to him, because after all of our long hard work, he replied with this:
Ron replied with this:
And this is how I did it, trust me, we went through a lot, and we finally ran into the right guy, and apparently my enthusiasm and passion closed the deal. So if I can do it, you can do it.
Envision it, believe it, write it down, and push your hardest. Push so hard, and do not stop talking about it, ever. You must 100% absolutely believe in your idea.
I know it seems simple, but most people give up, and stop talking about it, that's the problem. You cannot stop talking about it, you cannot stop networking, you cannot give up no matter what. beModel.com was Jamie's and I's life, literally, even though we didn't use it 24/7, all we did was talk about it, and work on it. Our energy was positive, and our motive was there.
Files I Created
bM-Projections.xlsx: I created an intense excel file with estimated traffic, signups, income, expenses, and the profits. Click here to see it. bM-Comparison.xlsx: I created a comparison of what we will have versus our competitors. bM-Expenses.xlsx: I created an excel file of where every single penny is going of their investment. bM-Presentation.pptx: I created a 10 slide powerpoint presentation using exactly this format. bM-ATBio.docx: I wrote a professional resume style bio on myself, including all my experience and skills. bM-ExecutiveSummary.docx: I wrote up a professional summary of what beModel is, how it's going to make money, our advantage, etc... bM-PressRelease.docx: A press release I had written up on our initial public launch, kind of just makes us look bigger then we are in the beginning.
PS. I wrote this while under the influence of a few shots, keep in mind, I never proofread, ever. I always, and I mean always, freestyle my blogs. So if you ever catch a mistake, I am sorry. Every blog I write comes from the heart, the honest truth, and how I did it.
Please comment below, feedback keeps me blogging!