This document discusses 5 ways that networking pays off when raising capital. It notes that introductions and referrals from a business's network are important for finding early customers, potential hires, and investors. Networking helps expand limited resources and allows potential investors to personally get to know entrepreneurs. Every interaction is a chance to network and make day-to-day connections that can unexpectedly lead to business results. Being part of a business community helps founders feel less lonely and more connected.

1. FIVE WAYS
NETWORKING
PAYS OFF
WHEN YOU’RE
RAISING
CAPITAL. Tom Walker
Featured in The Metropreneur, August 2014
Capital Access Series #7

2. WE HAVE
DEPTH.
-Yogi Berra

3. This is the seventh article in our
Capital Access series.
We began when last winter’s snow was deep on the ground. Our first topics were
heavy lifting ones. Then, as winter moved to spring and baseball season began,
we’ve been channeling the wisdom of the great Yogi Berra.
His quotes helped us express the importance of setting up a process from day one
for due diligence. We’ve encouraged entrepreneurs to seek out trusted advisors
and listen to what they have to do. And we’ve recommended cost-effective ways
that a company can toot its own horn.

4. Now, we’d like to lighten up a bit and talk about one of the best and
most uplifting aspects of entrepreneurship—networking.
Purposeful, results-yielding,
and, yes, fun networking.

5. When it comes to finding early adopters, paying customers, or the
right new hire or service provider with the skills your company
needs, introductions and referrals are an entrepreneur’s lifeline.
Investors favor startups that have customers and a strong team.
“Warm leads” yield
better results than cold calls.

6. In entrepreneurship, limited resources is the name of the game.
Human relationships are a terrific way to fill in the gaps in your
experience or knowledge—especially in Central Ohio where so many
individuals and organizations stand ready to help
entrepreneurs succeed.
Networking helps expand
limited resources.

7. Assuming that you are a coachable, approachable, entrepreneur—and
you’d better be if you want to attract investment capital—networking can
create opportunities for potential investors to get to know you personally
before you present your business plan.
Experienced investors invest in people
more than business plans.

8. Every time you interact with another human being is a chance to
network. With a networking mindset, entrepreneurs can
recognize opportunities to connect every day. Sometimes it’s the
day-to-day connections that produce the most startling and
unexpected business results.
Networking is a great way to
multitask.

9. People feel connected when they have something in common.
Being a company founder can sometimes be a lonely path.
It helps to be part of a community.
Feeling connected
feels good.

10. And that brings me back to Yogi’s quote.
The entrepreneurial community
In Central Ohio does have
“DEEP DEPTH.”