Learn to succeed with investors–from a guy who failed.

Shortly after my college graduation, a few friends and I started a new media company. Within a few weeks we fleshed out the concept, wrote a business plan and set out to seek financing. With a little hustle, I managed to get us a meeting with a well-known investment firm to discuss the opportunity. Even though our business had yet to bring in a single dollar, and none of us had ever been the CEO of coffee shop let alone a multi-million dollar enterprise, we were all confident that we had a sure thing on our hands. After all, our financial projections forecasted gross revenues of $200 million. What investor could say no to that?

We’d be rich. All we needed to do was raise a small amount of capital–$15 million.

I remember thinking, “How hard could it be?” We were obviously, naïve, foolish and delusional.

There was one small problem with our plan. None of us had any idea how to pitch an investor. So I did what any clueless entrepreneurial upstart would do: Google searched “how to pitch an investor”.

Nothing that I read online could have prepared me for what was to come. We would quickly find out that our presentation was doomed before we ever set foot into the meeting. In reality, it was doomed before we started writing the business plan.

At the beginning of the meeting one of the investors asked me to hand him a one-page executive summary review. I hadn’t prepared a summary, so I handed him the first 11 pages out of the binder encasing my 95-page business plan. Strike one.

Less than four slides into my 32-slide presentation, the second investor interrupted me and said, “OK. Stop. I get it. You definitely don’t need $15 million.”

Defending our business plan, I overconfidently replied: “It can’t be done for less.”

“Really? It can’t be done, huh?” he responded with a smirk masking a hint of laughter. Strike two.

Both of the investors then proceeded to hit us with a barrage of questions:

“How much money have you personally put into your business? Anywhere near $15 million?”

“How can you possibly substantiate gross revenues of $200 million in year three?”

“Why are you trying to produce, market and distribute 10 products at the same time before you see if a single one sells at all?”

The questions went on and on. None of our answers were favorable. Strike three.

As you might have guessed, I didn’t walk out of that meeting with a $15 million check. I later realized, however, that this was one of the greatest educational experiences of my young career. I learned more about real-world fundraising in 30 minutes than many entrepreneurs learn in a lifetime. To this day, whenever I pitch investors for capital, I always remember these six hard-learned lessons:

1. Less is always more.

An elevator pitch is vital. Verbose presentations and lengthy explanations will not impress investors, and most likely will turn them off. Present your business in a manner that’s short, sweet and to the point. Investors need to be confident that your business will attract and retain customers. If they don’t grasp your concept in a short time span, they may presume that customers won’t understand it either.

2. Never hypothesize. Execute, execute, execute.

Inspire confidence with facts, not fiction. Most investors seek out low-risk businesses with proven managers that are as close to guarantees as possible. A company with cash flow, a track record and real-world experience has a better chance of getting investors than a business plan forecasting large returns. Find ways to test your business’s viability on a shoestring budget, and turn your idea into a functional business before you seek investment.

3. Leave the hockey sticks on the ice.

Excite investors about your big picture, but be reasonable and responsible. Avoid hockey stick projections. Respectable investors will not take you seriously if you present them with nonsensical financial graphs that claim your company’s revenues will grow from $100,000 to $50 million in three years. Show investors that you have a grasp on reality with three versions of financial projections: best case, moderate case and worst case. Base each of these models on facts, past and present performance data, industry and competitor analyses and a series of well-thought-out, defendable assumptions.

4. Learn to love discount stores.

Being cheap is chic. In an age where spending is out of control, you’ll need to prove that you are a fiscally responsible manager who knows how to get the most out of a buck. Give yourself wiggle room in your operations and marketing budgets, but avoid being excessive. Never ask for a large salary or big-budget perks. Investors want you to be in a position where everything is on the line.

5. Rome wasn’t built in a day. Your business won’t be either.

Investors are wary of funding over-eager businesses that seem destined to bite off more than they can chew. Before asking for millions of dollars to fund 50 divisions and hundreds of product lines, prove how well you can create, manage and fulfill demand for a single product. Demonstrate that your business can crawl before you say it can walk. Perfect your marketing tactics, sales strategies and operational procedures. Investors appreciate companies with sustainable step-and-repeat business models that are poised for exponential growth. Remember, even Google’s success is based on a single product.

6. Choose not to be the smartest person in the room.

Know what you know, know what you don’t know and find the people who know what you don’t know. Build a team of credible experts. The smartest leaders in the world are those who surround themselves with smarter people. Investors are funding a management team as much as they are investing in a great business concept.

Are you a young entrepreneur with a unique venture? Email Scott about it at pitchme@askgerber.com.

Scott Gerber is Entrepreneur Magazine’s Young Entrepreneur columnist, CEO of Gerber Enterprises and founder of AskGerber.com. Visit AskGerber.com to find out how your business can get featured in Scott’s new book, Never Get A Real Job. For information on speaking engagements, media appearances or Gerber Enterprises’ portfolio of businesses visit www.GerberEnterprises.com. Follow Scott on Twitter @askgerber.

Truth: Most people never become what they could be. Without a definite purpose or ambition, they cruise along in life, tackling what’s easy with great aplomb, saving what’s difficult for another day that never comes. When obstacles become too tough, too inconvenient or seemingly insurmountable, they give up, then resign themselves to the fact that success wasn’t meant for them.

Obstacles – nasty as they may be – are really nothing more than giants on the road to your goal. Giants pop up to test you, to strengthen you and – more often than not – to make you prove you’re ready for what you want in the first place. (Some people say that giants are a sign that you’re on the right path.)

No matter what you do in life, how you handle giants will ultimately determine how successful you become.

Be warned, however: Giants are clever. They come disguised as a lack of time, funds, education, contacts, resources…you name it. There’s a garden variety to choose from, all giants nonetheless. Perhaps the greatest giant of all is insecurity, i.e., who am I to do that? Don’t allow yourself to get intimated by big projects and paralyzed into inaction. Whenever feelings of doubt of insecurity creep in, recognize it for what it is – fear – and then get out of your own way. (Note: The more giants you tackle, the easier they become to defeat.)

The key to conquering fear is not to try and banish it completely (which is impossible), but to deal with it. Use it. Turn your fear into focus. No matter what the situation, if you take the spotlight off of yourself (how is this going to make me look?) and put it on the task at hand (what would really make this project outstanding?), you’ll have an easier time moving forward.

“Focus is bringing everything you have to what you want and cutting off everything else.”

~Advertising Legend Mary Wells Lawrence

Emily Bennington is the author of Effective Immediately: How to Fit In, Stand Out, and Move Up at Your First Real Job. She hosts a popular blog for career newbies at www.professionalstudio365.com and can be found on Twitter @EmilyBennington or via email at ebennington@msn.com.

OMG, my neighbor won a Grammy award this Sunday!

As you can imagine, I’m psyched beyond words for her and immediately wanted to celebrate her life changing career success with you all here at YoungandSuccessful.com….because well, that’s what we do, but also, because I thought you’d all appreciate the little taste of this experience up close and personal.

Living in Los Angeles is a pretty surreal existence. Sometimes it’s a little over the top, often it’s fascinating (mostly due to the crazy characters who reside here), frequently it’s perplexing (attitudes, values, paradigms, etc.) but the real reason most live here is for the unbeatable lifestyle – the relaxed atmosphere, the beauty, the beaches, the amazing weather.  Sure some come to be discovered, others to escape the cold, and the rest in search of a better life.

Anna Joseph moved to LA from Minnesota to launch her career in the entertainment industry like countless others.  For the past few years, she’s been a wiz at producing commercials and more recently started to take on some other projects – one of which was a music video.  Long story short, the “Boom Boom Pow” video featuring the Black Eyed Peas was in part, her creation.  And Sunday, they took home the Grammy for Best Music Video.

As I watched the awards that night (with my other favorite neighbor) I couldn’t help but look beyond the glitz, the glamour and the stage show that was put on to celebrate and publicize it all.  When Taylor Swift talked about what it was like to be a kid in high school dreaming the impossible – to one day win a Grammy – then experience it actually happening that night, she reminded millions around the world that many on that stage have had journeys similar to ours.  She ruminated about how those of us who start out all filled with fire and ambition, hungry to succeed, are all told at some point or another that much of what we dream of is unreachable…but clearly it’s not.
Listening to Taylor was a reminder of that.  But helping Anna get ready for the actual Grammy’s herself was the best proof I could ever imagine.  And I really wanted to remind you all of that.  These kinds of successes really do happen.

Anna is the sweetest, nicest, most considerate, professional and talented person you could meet.  She’s real, authentic and dedicated to giving everything she can to everything she does.  She’s one of those people that you hope experiences a success like this…but still, you never dream it will actually happen.  And yet, it does sometimes!

For the past month our building has been a buzz with getting her ready – dresses, hair, makeup, planning.  Her sisters and niece and father flew into town this weekend.  Everyone else at home huddled by their televisions with bated breath.  Those in town got all dressed up, went to the parties, escorted her to the awards show, bit their nails as they waited for the category to be called, then were right by her side when it all happened.  Totally surreal.

I know you don’t all personally know her, but I wanted you to share in this experience because it’s important for us all to see come to life.  All this hard work, the late nights, the pain, the suffering, the dedication, the commitment…is worth it.  Not always, but often enough to make the effort worth it.  Plus, how much more exciting are our journey’s than everyone else’s?  We lead these crazy lives because we want more out of life and we’re all curious to to see just how far we can go.

As you’re thinking about your path so far and all the things you aspire to do, take a look at this video and put yourself in Anna’s shoes. It is possible.  This level of success can be yours.  Anna is living proof.

It’s that time again—time to usher in a brand new year. No matter what you did or didn’t do in the past, you can turn the calendar page and begin again. Start your job search fresh with a cover letter that will result in an interview for the career you’ve dreamed about.

Even in a tight economy, people are being hired every day. You can be one of them. Businesses need qualified individuals who are professionally trained, experienced, and ready to step into a wide range of jobs—from A to Z.

Blow away the competition this year with a unique cover letter that commands attention.

Adopt a Winning Strategy

A well-crafted job search cover letter has three tried and true ingredients and you can include them in your letter as easily as anyone else. Here they are, yours for the taking.

Make it SHORT: Thank you for posting your need for a bookkeeper on CareerJimmy.com. With five years of experience in this field for my previous employer, I feel well qualified to fill this position and would welcome the opportunity to interview.

Keep it SIMPLE: I’ve received two company awards for my skills and performance. I understand the importance of taking responsibility for the job assigned, holding myself accountable to my superiors, and being a team player with my co-workers.

Be SINCERE: I would love the opportunity to interview for this position. I want to learn more about your excellent company and then show you how I can do my part to help achieve your goals.

Help employers do their work by putting your name and experience in front of them.

Think of the hiring manager as a good friend, joining you for lunch after a round of golf or a workout at the gym. Keep your writing short, simple, and sincere and you will be noticed.

Avoid a Losing Strategy

Notice the difference between the previous examples and this one that is filled with clutter, confusion, and camouflage…

“Regarding your posted listing on CareerJimmy.com I am taking time today to respond to that listing in hopes that you will take some time to consider me for the job of bookkeeper, given that I have five years of doing this type of work for the employer I used to work for before I saw your listing. I hope you will decide to interview me, although I realize there are other people hoping to win this job. If you want I can provide you with more information about my qualifications. Just ask. Please consider me for this job. I have been unemployed for the past six months and need to get to work soon.”

Salute the New Year!

Read your cover letter aloud—preferably to someone you trust for honest feedback. Then kick the clutter, confusion, and camouflage off the page! And turn to short, simple, and sincere. Be yourself. That’s the person a hiring manager is eager to meet. When you hear your unique voice on the page, you’ll know you’re there.

Then lift your glass and tip your hat to the New Year with expectation and excitement. It’s going to be a great 2010 for you, perhaps one that will change your life and career in ways you’ve never imagined. And all because you took the time to write an amazing job search cover letter that will have a future employer raising his glass to yours (and inviting you in for a job interview).

Happy New Year and happy job hunting!

Jimmy Sweeney is the president of CareerJimmy and author of the new, Amazing Cover Letter Creator. Jimmy is also the author of several career-related books and writes a monthly article titled, “Job-Search Secrets.”

Visit Jimmy on the web at Amazing Cover Letters.com for your ‘instant’ cover letter today. In just three and a half minutes you will have an amazing cover letter guaranteed to cut through YOUR competition like a hot knife through butter!

Just because we’re at the end of January doesn’t mean were letting you off the hook with your resolutions just yet. You may already be into the groove of the new year, but odds are there are still many things you can do to set yourself up for great success this year! Here are a few tips to keep you in the strongest state of mind:

1. Surround yourself with success
“Show me your friends and I’ll show you your future,” is a great saying because it’s true! The people and influences we surround ourselves with play a huge role in how we think, act and form our own aspirations.  Rearrange your environment to include more positive, proactive, prosperous, generous and happy people.

2. Commit to making this your best year yet
Banish the doom and gloom attitude of ‘09!  All that fear and pessimism is barely going to get you by, let alone help you knock things out of the ball park.  Switch up your attitude to expect success.  Plan for it.  Build your daily life and plans around achievement and doing what you need to to get to the next level.  Reject status quo.  Instead, make it your fall back plan.

3. Solidify your career plan
If you’re not already committed to a well thought out path, stop RIGHT NOW and look at where you are, what your options are, and be more strategic with every new step you take.  Stop wasting time!  Get a grip now on how to leverage your talents, interests and style to make work something you love and are excited to talk about.  For free help, YSN’s Career Planning tool will help you discover your best path to success in as little as 20 minutes!

4. Show your appreciation
Tell the people you love that you do more often.  Articulate your admiration for your mentors, tell your neighbors how grateful you are for their kindness. As for clients, colleagues, managers, employers, don’t forget how critical they are to your survival and success.  Let them know how much you appreciate their trust and commitment in you and your company.  Little emails, notes, texts, calls and quiet conversations over coffee can really make someone’s day and reinforce your relationships.

5. Combat stress with healthier habits
Next time you feel sluggish, frustrated, fired up or depressed, pass on that third cup of coffee and take a walk around the block, go for a jog, hit the gym, cut up some fresh fruit, nibble on some protein, down a bottle of water, of just put some headphones on and listen to music you love with your eyes closed for a bit.  Not only will you get away from the stress for a few minutes, but you’ll feel stronger when you get back, and you’ll remind yourself that subtle little things you can do like this do make a difference, not just personally but professionally too.

6. Stockpile your options
Opportunity truly is everywhere.  Today, more than ever, you need to have a solid idea of your options so you’re prepared for anything.  Don’t let life or the economy sideswipe you or knock you around like tennis shoes in a dryer.  By lining up opportunities and having backup plans at the ready, you’ll feel more confident, less vulnerable, make smarter choices, and start to pay more attention to what really makes you happy and gets you closer to your goals.

7. Get your career on the fast track
Did you know that every day you have the opportunity to do little things that can make a significant difference in your success? That if you get a better grip on how to best position yourself, package your experience, and build your credibility, people will pay more attention to you and treat you with more respect?  If you surround yourself with experts, advisors, and mentors you’ll make smarter decisions.  If you arm yourself with the right information and insights, you’ll be smarter and probably make more money. Let us show you how with our NEW  Fast Track to Success: 30 Days to Transform Your Life and Career Program!

8. Plan things to look forward to
Looking onward and upward keeps us moving forward and helps maintain our excitement and enthusiasm for what’s to come.  Make plans to go check out a big conference or seminar you’ve been reading about.  Organize a get together with a bunch of friends who really inspire you. If you’ve been working like a dog, schedule a sleep day to shut off your phone, stay in bed, nap, watch movies and rejuvenate.  Set a goal to achieve with a deadline so you can go celebrate when you hit it.

9. Become a tourist in your own town
Start to enjoy your own surroundings more.  It doesn’t matter where you live.  Start to explore like you’re new in town.  Go check out the sites, restaurants, even libraries or theme parks that you haven’t seen or been to in a while. Drag a friend along with you and have a blast.  Find a new appreciation for the place you call home and the fascinating and funny characters who live in your city, town, village or neighborhood.

10. Build your community, build your career
Getting involved in local causes, charities, fundraisers and committees can not only help you make an impact in your own backyard, but you’ll make some great friends and connections too.  Rallying behind a cause (whether local, national or global) gives you a very special opportunity to work with community leaders, entrepreneurs, corporate execs and other special people you might never have met.  Joining forces with them builds unity, camaraderie and a real sense of community.  Best of all you can make a difference in the lives of others…and the rush you get from that is second to none.