How to raise money when the stock market is in the $hitter.
As I mentioned yesterday in my Broadway Market Correction blog, the Dow dropped 2k points in a week.
We’ve grabbed a few points back, but as China continues to stumble, it’s obvious we’re in for a bumpy ride.
Not the best environment to raise money for a risky investment like the theater, now is it?
Because the theater is such a high-risk venture, I find that investors look for a reason . . . any reason . . . to say no. “I’ve got too many things on my plate,” or “I don’t want to read the documents,” and at times like these . . . “I can’t make any investments because the stock market is so bad.”
But you can’t say that to someone you’re trying to get to invest in your show, now can you?
Of course not. So what do you say?
Well, one of the things that I say is that the volatility of the stock market actually makes the theater look a lot less risky. So much for the “set it and forget it” strategy with stocks, right? 🙂 Simple spin. But true! I once had an investor say to me, “Hey, I just got hammered in the market, I might as well take a chance on Broadway, at least it’s more fun than Bio-tech!” #TrueStory
But honestly, the most successful thing I say in times like this is . . . nothing.
When you know people are inclined to say no to what you’re asking, don’t ask. Because once you get a no, it’s super hard to get them to change their mind. (It’s a psychological trend called “consistency” – once people say one thing, they stick to that one thing – read this book to learn more.)
So, this is a great week to take a break from actively raising money.
Now, that doesn’t mean you stop your raise altogether. Oh no. But I’d focus this week and probably next on just getting lots and lots of leads, so when the market stabilizes, and when your potential investors no longer have the markets as an excuse, you’ve got more and more people to ask.
Raising money in any market is difficult. Don’t make it harder on yourself by raising money in this one.
Oh, and if you’re raising money, and want more tips on how to guarantee you raise what you need when you need it, check this out.
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