10 Tips to Help You Grab the Money

5. The investors have to personally like and trust you. Just because you have a great idea doesn't mean the investors will open the briefcase full of Benjamins. The investor has to feel comfortable with the entrepreneur because, unfortunately, the business will have its ups and downs. Investors need to feel they would do anything to help the entrepreneur be a success.

6. Your timing has to be right. This is where the stars, moon and sun all line up perfectly. Let me give you a few examples of failed deals for me:

• E-Commerce Play: Five years ago, I co-wrote the business plan for a very exciting e-commerce venture that credit card giant Advanta was salivating over. One of Advanta's top venture people read the plan, met with us in New York and invited me and the founder to present to the powers at Advanta. Three days before we were to present, our champion at Advanta, a British fellow, tragically lost his father, and the company immediately lost interest.
• Magazine: Twelve years ago, I developed a business plan for a national magazine. I lined up an internal champion at the venture fund. Unbeknownst to my champion, the managing partner had just lost $1 million of his own money in a magazine deal.

7. You have to be realistic the amount of equity you are willing to give up to obtain your dream. Believe me, you are not going to be happy with the amount of equity you are going to have to part with. But if you want to get a deal done, you have to be practical and take a long-term view.

In our case, I told the investors we would sell them 60% and we would take 40%. I bet a lot of you would like to invite me to a poker game because I must be the dumbest guy who ever raised money. The reason I was readily willing to give more than half of the company to start was to get over the perception that every investor has: that the entrepreneur will be immovable and difficult to work with.

I have literally watched dozens of entrepreneurs blow their chance at funding by insisting on owning a majority share of the company. Keep in mind the endgame: Get the company off the ground with the hopes of selling it to the public or a private company for significant money.