The master negotiator: how to use the power of persuasion to raise dollars - handle your business - 17-year-old Amelia Landreth, negotiating for funds to pay for varsity and junior high basketball teams

Black Enterprise, Sept, 2003 by Sonya Kimble-Ellis

It's a sure bet that you've mastered the art of persuading your parents to give you cash to buy whatever your heart desires--whether it's the newest Play Station II game or a CD. But can you convince someone to invest money in your fledgling business or donate funds toward your high school sports team or club? It isn't easy, but with perseverance and a clear plan, it can be done. Just ask 17-year-old Amelia Landreth, a senior at Crenshaw Charter High School in Los Angeles.

A shooting guard for the girl's junior varsity basketball team, Amelia negotiated $5,210 for the varsity and junior varsity teams. They later received a $5,000 matching donation from the Miller Foundation. Why'd she do it? "I just couldn't believe that the boy's team had sponsorship and the girls didn't," Amelia says.

Although the economy is in a slump, Amelia used the power of persuasion to raise money. These tips can help you do the same.

* Develop your communication skills. "Stand in front of a mirror and practice," says Patricia Laino, Ed.D., of the Entrepreneur Center of the Business Training Institute Inc. in Utica, New York. Laino stresses practicing with enthusiasm. "Passion will convince others that you believe in the business, and that will help them believe in it, too," she says.

* Have a business plan or proposal. Show potential investors that you've thought out your business, the service it will provide, your customer base, and your competitors. Try The Young Entrepreneur's Guide to Starting and Running a Business by Steve Mariotti (Times Books; $17) to help you get started.

* Have a dollar figure in mind. How much money will you need? Add up the numbers to make sure you have enough money to cover necessary items. For example, supplies for a lawn care business could include rakes, a mower, and trimmers, while a printing business would require ink, paper, and a computer. "My proposal included an outline of our traveling expenses and the cost of uniforms and shoes," Amelia says.

* Show financial savvy. Investors want to know that you're willing to use your own money to start or grow your business. Also, present "a contract that outlines a plan for paying them back," Laino notes. It's easier to negotiate money if both parties are clear on the terms of the loan or investment. Don't be afraid to ask an adult for help. Amelia had assistance from her coach, who reviewed the proposal to check costs and to make sure it read properly.

* Know how you're going to approach prospective investors or donors. "I took the proposal to some people," says Amelia, "and I e-mailed it to others." Set up a meeting with the establishment's representative and be prepared to discuss why helping you will benefit your investor. And be sure you can answer the following questions before meeting with them: What kind of return can the investor expect? What's unique about your business? How will your service help the community? Why does your organization need their help?

* Seek out funding sources. Savvy businesspeople know who to approach for capital. "I searched the yellow pages and started picking up business newsletters, and that's how I found out about Roscoe's Chicken & Waffles," Amelia says. Laino advises going to the library or searching the Internet to find organizations that make money available to youth. "Most cities have a Department of Economic Development that makes funds available for kids who want to start businesses." In addition to local businesses, contact an organization called Trickle Up (www.trickleup.org), which offers seed money to low-income youth.

* Be motivated. "When talking to people, you have to be honest, straightforward, and to the point," says Amelia. "I got a lot of rejection, but that didn't stop me."