When someone says they’re managing and running a fund…people’s ears immediately perk up.
Why is that???
It’s because funds allow you to do more. There are so many possibilities.. the amount of private capital raised every year has been growing steadily for the past few decades!
More Funding allows you to play bigger. Period.
I recently read “What It Takes: Lessons in Pursuit of Excellence“, a book written by Blackstone CEO and founder, Stephen Shwartzman.
My favorite quote from the book is,
“It’s just as hard to start and run a small business as it is to start a big one. You will suffer the same toll financially and psychologically as you bludgeon it into existence.”
Everyone knows getting a business off the ground is a commitment..
If you’re going to dedicate your time to a business, might as well start one that has growth potential!
Blackstone’s 1st fund goal was to raise $1 BILLION. No one had raised a fund that large before. The goal, at the time, could be considered pretty ridiculous…
But they did it!
Sure, they didn’t raise any money the first year… but then they got their first check for $100mm.
Shwartzman believed that if he was going to set a goal, he was going to go all the way... He was determined to PLAY BIGGER.
Why NOT play bigger?
When you think about it, you should be asking yourselves what there ISN’T to gain by going big? While raising money for bigger deals, there’s a lot less competition to deal with.
Anyone can buy a duplex and rent out the other half…but we have different, bigger, and more profitable alternative assets in mind!!
A common rebuttal:
“What if these other larger funds come squash me?? There’s no way I can compete.”
Well I’m not saying go out and start with 300 unit complexes!!
Find your niche and become the category king. Seek unique sectors and become the BEST in that industry.
Think about it: whose covering the middle sector?
Maybe you find your niche in just 100-unit complexes?
Find that middle-market sweet spot! The well-known funds won’t touch the mid-cap markets. That could be your playing ground.
Funding attracts AMAZING people to you! People are attracted to others with a vision.
We naturally gravitate towards people that have ideas and potential and make us excited! When starting a fund, people will not only notice and appreciate your vision, but also want to spend time with you…and eventually invest in your fund!
When you have the forward-looking mindset funding brings, you obtain an incredible ability to gather.
- Finally, think of all the people that will benefit from your efforts!
For the same amount of work, you could create potential generational wealth that could come to you, your family, and your grandchildren!
Playing bigger allows you to give generously and bless more people in your life.
We all have 24 hours in a day…are you going to use them to go big, or go home??
I want to help you on your funding journey!
Thanks for the read!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the autho