Your start-up or newer small business needs cash to get off the ground. Attracting the capital you require is no easy feat. Among the many sources, you can try are angel investors – individuals who invest in fledgling companies, bringing funding and expertise. In order to score a partnership with an angel, entrepreneurs need to know what these investors are looking for.
Angel investors are often most interested in businesses recommended to them by friends or colleagues. Networking is essential to finding the right financial backing. Reach out to all your local business partners and contacts. Ask if they know anyone looking for investment opportunities. You are most likely to find an angel investor if you know someone they know.
Opportunities to Improve or Aid
Not only do they have valuable monetary resources to contribute, but angel investors are often interested in supplying your small business with expertise in your field or helpful advice about running a business in general. Most angel investors are former entrepreneurs themselves and enjoy mentoring promising individuals in the next business generation. Be prepared to work closely with your angel and be willing to accept advice and constructive criticism.
While it is true that many angel investors are in it for more than just the money, they are still in it for the money as well. They want to see that your small business has the potential for impressive growth. That means the angel has to believe in both you and your product. When examining entrepreneurs, angels look for discipline and evidence of hard work. They look for skills or training that point to good leadership skills and smart business sense. In terms of the company and product, angels want to see a written business plan with reasonable financial projections. They want to know why and how your company is going to turn a profit.