EP248:  Every Scaling Business Must Do This

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Do you want to scale your business in a way that’s not just massive but also predictable and repeatable?

🎧 Listen, the secret isn’t in some magic formula—it’s about applying cold, hard scientific principles to your business strategy. 

Here’s the deal: by embracing the science of success, you supercharge your ability to observe, analyze, and replicate the strategies that work.

It’s about nailing down those actions that consistently drive success, refining them, and then hitting the gas—hard. 

So in this episode we are going to teach you the science of capital raising so that like a proven scientific hypothesis you can replicate your effort and get the same result over and over again.

But before we begin, let’s talk about what you don’t want to do.

You don’t want to be that one-hit wonder, right?

The kind who manages to piecemeal together a few million bucks on a fluke, then crashes and burns when the next big chance rolls around. Why? Because you winged it the first time and didn’t nail down the how or the why behind your success. 

That’s no way to build a lasting empire.  😵😵

You need a game plan that you can hammer out again and again.

Understand exactly what moves brought you that win and make them your playbook. 📖

Look, we’ve seen it way too many times—the frustration is off the charts.

We’ve spoken to these folks who are practically on the verge of tears because they can’t figure out why success keeps slipping through their fingers, why raising money feels nearly impossible for them though they have wealthy connection.

It’s not just a minor setback; it’s an emotional beatdown that nobody should have to endure. 

We took a completely different approach from the norm. When we first started raising capital for our initial deal five and a half years ago, it wasn’t smooth sailing—it was frustrating, stressful, and filled with doubts, just like what many others might go through.

The overwhelming fear that we were jeopardizing our purchase and letting down our partners was crushing.

But here’s the kicker: we decided not to let those early hiccups hold us back.

Instead, we buckled down and built a solid framework for success.

We weren’t about to let past frustrations shape our future.

So, we crafted a robust system that now allows us to predictably and consistently raise millions of dollars for each deal we engage in, scaling up our efforts to a level where, now, when we travel the globe, we can literally flip a switch and watch the capital roll in.

This system wasn’t just about overcoming hurdles; it was about setting a new standard for how we operate, ensuring that every future venture not only starts on solid footing but also maintains a powerful momentum. 🤓🤓

Overcoming Financial Inertia

Speaking of momentum, let’s first talk about overcoming financial inertia. 

To understand inertia, think about the playground roundabout set at your local playground, similar to the one you might remember from “Harry Potter and the Prisoner of Azkaban.”

As kids, we would all pile on, and one of us would have the job of starting to push. 

At first, it was incredibly tough to get the playground roundabout moving because of its own weight and the weight of everyone on it.

This initial difficulty in getting the playground roundabout to move is a perfect example of inertia—the resistance to any change in motion.

Just like it takes a lot of effort to push that loaded playground roundabout into motion, in our lives, especially in financial contexts, we often face what’s called financial inertia.

This can be mental, stemming from our hesitations and fears, or situational, arising from our circumstances. Both forms of inertia can significantly impede our ability to raise capital, as they slow down our momentum 

One of the major obstacles in the world of investment is a daunting mental block, fueled by common misconceptions and a deep-seated inertia that transforms what should be an exciting opportunity into a formidable challenge.

It’s hardly surprising, then, that numerous ambitious investors eager to dive into multifamily apartments find themselves stuck, mired in a bog of uncertainty and unable to move forward despite starting out with tremendous optimism. 

This inertia, both mental and situational, acts as a barrier to momentum, holding them back just as they’re ready to leap.  🤯🤯

They enthusiastically join masterminds and mentorships, charged up by the transformative prospects of apartment investing, yet they often stumble when it comes time to secure the necessary capital, as the initial resistance to change proves too great to overcome without a significant push.

Here’s the real scoop: mastering capital raising isn’t about catching a break with perfect economic conditions or rubbing elbows with the elite.

Right now, there are trillions of dollars—yeah, trillions with a ‘T’—just sitting idle, itching for a savvy place to multiply.

Even with today’s headlines screaming about shaky regional banks in 2024, sharp investors are desperately seeking smarter havens for their funds than the dismal returns of bank vaults.

And here’s another thing: all those doubts about not being good enough, or not having enough time or energy?

That’s financial inertia talking—those same old mental blocks that keep you stationary, stuck in the mud of insecurity and self-doubt.

Remember, inertia is all about objects (or people) at rest staying at rest unless acted upon by an external force.

In this case, that force is your own mental block.  Break through these mental barriers by recognizing they’re not real; they’re just shadows cast by fear. 

Building Momentum in Funding

Let’s go back to that playground roundabout.

You dig in deep, gripping the handlebar with both hands.

Your feet are firmly planted in the mud below, ensuring a solid stance. You lower your head and start pushing forward with all your might.

At first, the roundabout barely moves, inching forward slowly. 

But you don’t give up; you don’t let the resistance deter you. As you keep pushing, the roundabout begins to move more freely. Gradually, it picks up speed.

Soon, you manage to push it to a full rotation, and now it’s spinning fast—so fast that you can barely hold on.

With a few more strong pushes, you leap onto it, letting the momentum you’ve created keep the roundabout spinning.  🤟❤️

Once the initial hurdle of inertia is overcome, the focus shifts to building momentum.

In the context of raising capital, this means maintaining relationships with investors, continuously improving your pitch, and leveraging small successes to attract more substantial funding and investor confidence.

Increasing your “financial mass” is critical in capital raising, much like how mass is crucial in generating momentum in physics.

Just as mass combined with velocity determines momentum, which dictates how much force an object can carry and resist changes, your financial mass in capital raising reflects your capacity to influence and attract substantial investments. 

As your financial mass grows—represented by your reputation, your track record, your network, and your expertise—so does your ability to pull in more significant and more impactful investments.

Many new investors feel pressured to think that raising capital requires extensive one-on-one interactions, and while personal touch remains essential, the initial gathering of potential investors doesn’t need to be so labor-intensive. 

Consider the inefficiency of being on endless Zoom calls, as some might suggest; it’s unsustainable.  😩😩

Instead, by focusing on strategies that enhance your financial mass—like leveraging technology for lead generation—you can attract investors more efficiently and effectively.

It’s also vital to realize that you cannot be everything to everyone.

Trying to appeal to all can dilute your message and make your offerings less appealing to the individuals who are most likely to invest with you.

Not every investor will be the right fit for your venture, and that’s perfectly fine. 

Investment decisions should be mutual; it’s not just about investors choosing you, but also about you choosing the right investors.

👉 This selective approach ensures that you’re not just accumulating capital indiscriminately but are gathering it from sources that align with your business values and goals.

By leveraging our ability to generate a vast amount of leads, we focus on growing our authority and expertise so that investors recognize us as the best stewards for their money.

This credibility allows us to continuously expand our financial mass, attracting the right investors who are eager to see their capital grow under our management. 

This strategic approach to increasing financial mass not only simplifies capital raising but also aligns it with our long-term goals, ensuring sustainability and growth.

Now that you how to scale your capital raising game by apply scientific principles, go watch this episode on this one thing will make your millions!

According to RealPage Market Analytics, during the year ending with the first quarter, the Western U.S. had demand for around 69,000 apartment units, which is less than half the demand seen in the Southern U.S. during the same period.