Courting Angel Investors
Many entrepreneurs seeking to launch their start-up business turn to “angels” after tapping into their family and friends for financing. However, angel investors have their own criteria for financing a deal. After all, angel investors are business people seeking a relatively profitable safe return of their investment. The following list could help in this endeavor: Courting Angel Investors.
- Do Not Expect to Get Funding Right Away: It is very important to seek out investors very early in the process. Realistically, it might take several months to find a willing investor or investors willing and able to invest in your business with terms fairly agreeable to you.
- Network: Go out and network. Contact the local trade organization associated with your business aspirations. Some states have incubator organizations for young businesses. Talk to their members about their start-up days. Ask them if they know people willing to invest in your business. Without divulging the intricacies of your business philosophy, let them know you have a viable business plan.
- Remember Your First Interaction: Do not forget your first interaction could lead to a long-term business partnership. Make sure you are comfortable with investors. Make sure you can talk to investors and the relationship is based on a relatively fair amount of trust and respect.
- Remember Your Long-Term Plan: Your objective is long term. What you want to do with the money is important. You should focus on executing your long-term business plan.
- Look at Angel Investors as Mentors: Many of angel investors are former business owners with tremendous expertise and insight. Listen to them. Learn from them. The relationship might last longer and be more successful if you do not let their advice fly by without thinking about it.
Angel investors could be one of the best sources of financing after family and friends for a start-up business with a viable plan. However, how one can tap into this potential source of funding could be challenging.