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Secrets of Asking for Big Dollars
A PROview Article by C. Mike Seabolt,
Executive Vice-President
What are “Big Dollars?”
In helping solicit big dollars for our clients, I have gained an even better understanding of what’s involved in making a major solicitation. What’s “major?” How about asking for $1.2 million? Or $750,000? Or, maybe $500,000? Don’t be surprised to learn that we routinely gain those kinds of investments for local community and economic development organizations even in tough economic times. But, you need to know how to ask for those amounts. Since I’ve been on the other side of the desk and getting big dollars for our clients, I’m glad to share some of what we know about asking for (and getting!) big investments.
Three Tough Questions
Ten years of experience with NCDS, plus 17 years as Director of External Affairs with a Fortune 500 company, has helped me better define funding requests that are true “urgent community needs.” The hard questions that must be answered are:
- How can I get the top 5 potential funders of a project to step up to the task?
- How do I respond if they tell me no?
- What is the best way to help these executives sell the request to their board or others “upstream?”
Get Them In On It and Up On It
We’ve learned that securing a major commitment doesn’t just start when you walk through the prospect’s office door. It’s always best to have major investors well “cultivated” before solicitation. We get them involved on a task force devising the new program, reviewing its goals and funding needs. We always interview them as part of the goal assessment/feasibility process. And, we like to make them part of an exclusive top prospect briefing.
Listen to the Prospect
During initial rapport building, listen and fact-find. Respond to what you’ve learned about the prospect’s interests in order to tailor the remarks to follow. For example, you’ll present different information to a retailer than you present to a realtor of manufacturer. And, while a bank of utility may share certain interests in your project, they will expect specific ROI (return on investment) data. By the way, Always talk about “investment,” not “contributions.”
Get to the Point... FAST
Keep the presentation focused and brief. The major points should be capsuled orally and on a single page. Your visit should not last more than 30 minutes unless the prospect extends it.
Ask for a Challenging Amount
Always ask for a specific dollar amount which is based on a thoughtful peer group evaluation of the prospect’s stake and ROI in the program. Know how the prospect’s investment compares with firms of similar size and type. Back your request with a strong rationale and ask for an amount that challenges the prospect to consider this request of major importance.
No Doesn’t Always Mean... NO!
An initial turndown may not mean the prospect will not invest. Take time to understand the prospect’s reasons and don’t confuse questions with objections. Often, the prospect needs to “ventilate” before seriously considering your request. Work with him or her and you can usually find a way to gain a major commitment. We do it every day.
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