Sales statistics have shown us that:
1% of sales are made on the first contact.
2% of sales are made on the second contact.
5% of sales are made on the third contact.
12% of sales are made on the fourth contact.
80% of sales are made on the fifth contact (or above).
So why would raising capital be any different?
There is the argument for potency.
That the investment opportunity was so potent investors had no choice but to flock. However in my experience frequency beats recency and potency during the course of a capital raising where several investors are required.
Looking at the sales statistics above 80% of sales are made on the fifth to twelfth contact. But when you are capital raising how do you get the chance to have so many contacts?
You need to use the 3 Step Method. Gather, Engage then Count.
1) Gather Followers. Even before you have your Investment Document complete you need to start gathering followers of your business or idea. Six degrees out from your business there are a wealth of potential investors. Some may be high net worth individuals, others may be customers, suppliers or others with an interest in your business.These can be recorded in a database or spreadsheet but better still in a Capital Raising Platform like ASSOB which is specially built for this purpose.
2) Engage Followers. For followers that have been gathered and recorded the next step is communicate with them in a way that engages them in the progress and excitement of the business. These communications may range from emails and other updates through to offer documents, supplementary documents, videos and investment summaries. Through the process of communicating followers will be engaged to the point where some become investors.
3) Count Investors. There are various different stages a follower progresses through on their way to becoming an investor. Initially they may have clicked on a link and are curious. Then interested. After that they may request an application form. Next step is to become investors. Thats when you can start counting.
The best way to harness these steps is to use a Capital Raising Platform that is proven to gather, engage and count followers. ASSOB is such a platform. Shortly the 20,000th “follower’ will join the ASSOB website. Wonderful proof of the importance of gathering, engaging and counting followers.