Connell Mccarty posted an update 1 year ago
When it comes to selling my Cap Table, the first thing I tell my clients is that I am not a writer. It is a fact. For years, I have managed a team of professionals who each write and submit several Cap Sheets, each attracting specific buyers. Some are seasoned professionals with many years of experience. Others are new to the game.
My primary sales tool for the Cap Table is my Cap Sheets, but I do not claim to be a writer. The clients’ requests usually are about their taste in a Cap or note. I have a large file of photos, many of which were taken by my wife while we were on a beach vacation in Mexico. I am not a photographer, so I cannot write “how to take terrific pictures of your Cap” into my notes.
Another fact: I do not buy notes. I simply collect them, trade them and give the proceeds to my wife. I have a few clients who actually want to write the notes, but most want a “how to” manual and examples on how to do something. That is where I come in. The good news is that I have written thousands of sales pages (not necessarily “conversion packs”) and can assist my fellow writers with any writing problem.
One fact I must share with my clients: When I initially purchased my convertible note, I thought it would be a quick way to make some extra money. In hindsight, I was very wrong. Most buyers will not buy a convertible note from someone who does not have experience with writing. They want someone with real-world experience writing notes. So, I must admit that experience does help. But, startup could argue that it does not really matter how experienced a writer you are.
Experience also does not mean that you have all the right tools and software. Remember, it is not just one’s word against another’s. startup of people have different perceptions and ideas about writing a note. There are many sellers who do not want to hear from you. startup may want to know all the gory details about what they are paying for.
The first step to take is to educate yourself about notes. Do not go out and try to talk to as many sellers as possible. Go over notes with a fine tooth comb. The more you know about the process, the better off you will be. Research is the key, so be sure to do your homework. I would suggest that anyone who is thinking about purchasing a cap or note should spend about thirty to forty hours going over notes with a fine-tooth comb.
It would behoove you to start with a cap table convertible note that is uncomplicated. You may find that after you have gone through the process once, you will be itching to move on to something a little more complex. Remember, when you are working with sophisticated companies, you are playing for keeps. So, do not be afraid to look into complex issues.
As a note buyer, you want to be a good communicator. When you listen, speak up, and ask questions, you will set yourself apart from the average buyer. This will also help you to close more sales. A good cap table seller will have friendly, open conversations with their buyers.
Also, remember that the biggest thing you have to focus on with this note is how to get it closed. Writing a good proposal is important but writing a winning proposal is even more important. You have to make sure that you understand how to add value to the buyer’s offer so that they will be willing to negotiate the terms of the purchase.
There are also other issues to be taken into consideration. For example, you need to figure out if you are going to get a higher cap rate. Some people can go up to 100%, while others may only get up to fifty. Also, if you are buying multiple convertible notes, you have to decide if you are going to get a cap table on each one or if you are going to get a cap table for one and two notes. You will have to look at these numbers in your favor as well.
Of startup , if you can write good Cap Table notes, then you should be able to get anything you want. It is definitely a good idea to talk with experts who know about these types of deals so that you have more options available. Also, remember that you have to get multiple quotes so that you can compare the prices. If startup see that a company is offering you something too low, then it is probably a good idea to get something a bit higher. However, there are some companies that offer cap tables and you shouldn’t just settle for one because it looks good on paper.