Dec 21 2008 by Brad

What Does Your Business Actually Do?

Q: I love your article in the Entrepreneur magazine. It was very information. Thank you.  I am now currently developing the domain name I had for 9 years to due other business and real estate investments.  Do you have any suggestions which VC wants to invest?  Currently looking for $100k to $250K. I only want to serious investors only.  Also, I want a VC with connections and experience in helping develop a company, not just throw money into this venture. This is my second business and so I am familiar with growing a business.

A: (Brad) I took a look at your website and have no idea what your business does.  My strong recommendation is that lead any email you send to a prospective investor with a short (a paragraph or less) description of what your business will do.  Just saying that you are developing a domain name doesn’t really mean anything.

In addition, if you are only raising $100k to $250k, it’s unlikely that VCs are the right target for you.  I’d encourage you to focus on your network of friends and family along with potential angel investors who are either geographically close to you or are interested in what you are up to.

But – most importantly – make sure you are stating clearly what your business is going to do in whatever approach you make to any investors.