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.

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.

For the tens of thousands who lost their jobs this year, and the millions of others fearing for the jobs they still have, YSN.com’s Jennifer Kushell shares these tips to survive the initial shock — and bounce back like a star.

1. Breathe. Stay calm.
The worst decisions are made under pressure, stress, or in a state of fear. Don’t allow yourself to be rash or irrational; keep your wits about you and commit to making it through this in one piece. Get a sense for what this layoff really means to you and what the real repercussions will be. Assess your safety nets: What are your back up plans? (All the way down to spending time with the folks in your worst case financial scenario.) Hopefully you’ve done enough to guard against that, and if so, take some solace in the fact that you’re prepared to weather a little uncertainty.

Links:
6 Steps to Survive Being Laid Off
Remember to Breathe
26 Steps to Stay Calm when the Situation Goes Bad
7 Powerful Relaxation Techniques

2. Look at this as an opportunity.
You know what they always say, “It’s not what happens to you, but what you do about it.” That might not be what you want to hear right now, but think about it: This sudden change could have a silver lining — so commit yourself to finding it. Take some time for yourself, even just a few quiet hours alone and reflect on all the things you truly liked and disliked about your job. What would you have done differently? Were you there because you had to be, or because you wanted to be? Ask yourself how you can now take the next step learning from your past experience. Is there a chance to take a step up? Or to change industries or careers entirely if you weren’t as happy as you wanted to be? So many times, abrupt changes like this are exactly what people need to get out of a rut and move on to something they’d really love to be doing.

Links:
Find that Silver Lining
Attitude is as Important as Skills

3. Audit your online identity.
Start paying close attention to your reputation management, to the platform that you’ve built for yourself online (if any) and to what new people will perceive about you when they google you. If you don’t like what you see online, or want to take control of that first impression you’re giving off, build a professional identity you can be proud of with a PROJO – your professional mojo. It’s a next generation resume/portfolio that you can share with contacts, add to/promote in your signature line, build out and keep up to date with your latest accomplishments to ensure that when someone searches for you, they find the “goods” on you, but the good!

Links:
Build your PROJO
Clean Up Your Online Act!
Manage Your Online Reputation

4. Stay connected to your network.
You probably have a lot more friends, colleagues and supporters than you realize. Survey your address books, PDA, business card files and social networks to see who’s really in your inner circle and wider network and who might be able to help lead you to some new prospective opportunities. Talk to friends and family and see who they know.

Then start reaching out to catch up with everyone you can. Befriend old friends online, shoot out a bunch of emails, even invite a few for coffee or drinks. Start talking to everyone you can! Ask your contacts who else you should be talking to, then reach out to them. Update your online profiles with the latest news and let people know that you’re actively exploring your options. This is not the time to hide out and wallow. Just make sure you force yourself to smile and at least appear to have a positive outlook for the future! Repeat the mantra to yourself: “onward and upward!”…until you believe it.

Links:
Keep Those Contacts!
Networking Your Way to a New Job

5. Assess your financial situation.
The first serious thing you need to do once you have the ability to think calmly and rationally (see #1) is to figure out the true state of your financial affairs. If you can, sit down with a financial consultant who will know how to ask you the right questions to get a proper assessment. Take a very careful look at any severance (if you’re lucky), benefits packages (like insurance policies, 401ks, etc.) that you may be able to “roll over” from your old company’s plan. (Take care of this right away too!)

Links:
Create a Budget — and Stick to It!
YSN Secrets #20: CAAAAASH

6. Ride the coat tails of senior execs.
If you’ve done a good job of befriending and staying tight with your bosses and other senior management, it might just pay off in real dividends now. Keep in close contact with them!!! The more connected they are, the faster they will probably find their next great opportunities and look to set themselves up for success in their new spot. When that happens, seasoned execs take quick steps to surround themselves with people they know and trust. They build teams from people they know — and that could include you! Make it known that you’re up for the new adventure if you are.

7. Use your leverage.
What can you do to leverage the experience you’ve had so far and the skills you’ve been building? What do you know that others want to? (Besides proprietary trade secrets!) How can you use what you’ve learned to your benefit and to others? You don’t have to play hardball or let your ego run wild to put your experience and expertise to work for you in a positive and proactive way. A great way to do this, and make some quick money, is to do some consulting work. Taking a few projects on will keep you in the game and buy you time to figure out your next move. Who knows, you might actually like it so much you decide to make it your new business!

Links:
Tips to Help You Stand Out in Your Profession
Learn to Understand Your Own Intelligence

8. Open yourself up to new opportunities.
Employment prospects or ideas you hear about from friends and relatives might not sound quite right at first, but give them a chance to explain — and yourself a chance to explore a bit. Don’t limit your attention to a very narrow set of options right after a layoff. Try to imagine yourself working in a whole new scenario and consider whether you might find happiness in some other industry or way than you’d previously envisioned. Ask a bunch of questions…even just to humor yourself. You might actually learn something you never expected or discover a connection to something that does actually fit you.

9. Stay healthy…or make this your big chance to GET healthy.
Whether you’ve been really diligent about taking care of yourself while employed or have totally forgotten what an athletic shoe feels like on your foot, make your health a major priority now. Take the time to sleep, get some fresh air, walk, run, do some yoga — whatever makes you feel your best. The endorphins will help a lot in bringing a smile and positive outlook to your face. You’ll also project more confidence as you go out to pursue other opportunities. You never know who you’ll meet along that run either!

10. Use this as preparation for the next big shake-up in your life.
Right now this might seem like the end of the world, but the good news is that if you can weather this storm, you’ll only be better prepared for the next one. Though we’d like to say this will never happen again, the truth is that life is a cycle of ups and downs, and preparation is the key to surviving it all.

If you are ready to look at the big picture, listen to our Secrets of the Young & Successful podcast series and create the life you’ve always dreamed about — no better time than the present! You can also come and talk to others about what’s happening to you in our discussion forum. You never know where the next great idea or opportunity is waiting…

Good luck!

If you’re starting to feel the “holiday blues” because you’re out of work or eager to change jobs, stress no more!  The holiday season offers a golden setting for you to meet new people and find opportunities before the New Year! Think about it: There are so many parties and gatherings happening this time of year that you can meet just about anyone you need to in order to advance your career or business! And best of all, you can do so in a casual, merry setting where people are ready to relax and socialize. Here are 5 ways to maximize your presence at those gatherings:

1. Take the opportunity to start a conversation with that agency VP you’ve been eager to meet. If you are the host, be sure to send invites to your important clients and the people you want to impress.

1. Find out if any of your friends are allowed to bring guests to their company’s holiday party, even if they don’t work in your desired industry. You never know what kind of connections you could make or who else might attend as a guest. Your friend’s coworker’s wife could work for the company of your dreams!

1. Find out if your local young professionals association or other industry/career organization is hosting a holiday event open to the public. It’s a great opportunity to meet, learn and network.

1. Keep things casual. Don’t delve into business talk now – use this time to establish a relationship with the person instead. Remember, the best jobs are never advertised, so by using your social savvy to make those important connections, that golden opportunity might just come across your desk when you least expect it!

1. Remember to bring your business cards, collect cards from others, or exchange contact information, and above all, follow up!

We at YSN are thankful for your readership, and wish you all the best this holiday season!

Heading home for the holidays can be stressful. Everyone wants to know what you’ve been doing with your life, how school or work has been going, if you’ve found someone special, and if you’re on a solid track.

Before you start sweating, here are three ways to prepare yourself for the conversations you don’t want to have at Thanksgiving, but most certainly will:

1. Think about the conversations you’re going to have and what you are going to say about the choices you’ve made. If you aren’t sure about your plans, don’t say “I have no idea what I’m going to do.” Instead, try “I’m actively exploring my options right now.” That kind of spin takes you from hopeless and lost to confident and proactive with some simple repositioning.

2. Know your audience and be aware of their “push” buttons. For example, your dad might care about how much money you’re making, while your mom might be more concerned about your happiness. Speak directly to their unique questions and concerns and they are sure to be more supportive.

3. Recognize what makes YOU happy and how you define success. Even though your definition of success may differ from others, it’s important to acknowledge the validity of all sides and respect how others might see the world – while impressing upon them how important it is for you to find a path of your own.

Remember, they love you. They don’t have to say it to mean it, and at the end of the day, they only want you to be happy.