Before we get to fi nance details of your business, we need to fi rst understand exactly how private equity works and the reasons investors put money into some companies, but not others. You will fi nd out why your company should choose the private equity option and how it actually works in a real life business case. You will also learn how to avoid those pirate equity types who lurk in the darker areas of the fi nance world, waiting to prey on founders and entrepreneurs who do not understand how private equity could hurt them. Next, this book will introduce you to some of the characters in the business of money and teach you their special language to help you gain their support. It will also help you to spot the best investor partner. You will learn about the world of private equity through this exclusive club and meet the people-the money magicians-who can take your business and transform it from a lifestyle to a legacy. Finally, you will discover the mechanics of the written investment proposal and learn how to prepare for and present at the investor meeting. Getting “investor ready” will teach you what to have in place to attract the investors you want. Most of all, through Money Magnet, you 24 CHAPTER 1 will learn how your company can crack open the private equity vault and get you the money your company deserves. TAKE AWAYS Th e traditional fi nancing structure is changing. Banks or the public market used to be the places to get capital, but now there are alternative pools of capital held by private funds and individuals that were not available twenty years ago. Th is is privatelyheld money and seed, startup, angel, venture capital, and institutional funds all fall under the one label-private equity. Business is all about momentum. It was fi lm director Woody Allen who said that a relationship is like a shark: it either moves forward or it dies. While Mr. Allen is a dubious expert on relationships, he knows how to make a point and this observation applies particularly well in business. Moving from a business model that merely supports an owner’s lifestyle to a business that survives beyond the owner is diffi cult, but it can mean the diff erence between the life and death of a company. Private equity partners can be a valuable source not only of money, but of the talent that could give your business the extra propulsion needed to grow. Other People’s Money Gets You Moving Are you clear on what you want to do? Every business, surprisingly even a failing one, has opportunities that could be seized with an infusion of other people’s money (OPM). Attracting investment is rather CHAPTER 2 THE BIG DIFFERENCE: OTHER PEOPLE’S MONEY If you want to run fast, run alone. If you want to run far, run with a team. African Proverb 26 CHAPTER 2 daunting-much like your fi rst time learning to play golf but with the topranked players of the club watching you. Perhaps you are feeling stuck, too.