The single most important step principals must accomplish to develop investors is to establish their own credibility, reliability, and integrity. In short, their reputation and the investor's confidence in their reputation is the single critical element needed to establish to reach agreement terms.

This is not to say that the quality of the plan, the presentation, the proposed terms are not important. They are of tremendous importance, but not until the investors develops confidence in the principal as someone that they can trust with their capital and that they will find the investment experience satisfying.

How does a principal go about accomplishing this end?

First, the principal must not rush the investor. The principal must allow the investor the time to become comfortable with his leadership and approach. This means taking the time for the investor to become thoroughly comfortable with the principal as an individual who operates in a reasoned and safe way that will protect his interests.

Next, the principal must demonstrate his or her credentials to the investor. Obviously, the investment documents are part of this process. However, more important support can come from references, anecdotal experience, discussion over processes, procedures, approaches, and the principals way of thinking. If possible, including persons who represent this confidence and experience through their own experience is a great way to support this goal.

Finally, take the time if you can gain the investor's agreement to show them the operation and the projects that you have and / or are entertaining purchasing. The time together on such a trip seeing the facilities, meeting the management staff, viewing the issues first hand, understanding the respect your work draws, experiencing the work in progress are a tremendously strong method of bringing the reality of your business opportunity to home.

In my own experience, if you can gain an investors attention for three hours or more on your project. The probability of investment rises dramatically. Principals that believe their personality and charisma can win over an investor in a shorter period of time are deceiving themselves. Trust and confidence is built by spending time getting to know the principal as much as it is by the facts of the deal. A deal can be incredible, but if the investor can't get comfortable with the relationship with the principal the investment becomes highly improbable. Further, I would argue that an investment without the trust and confidence of both parties is not in anyone's interest. So, start building the relationships you need and the investment capital will likely follow.