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Getting started with looking out for angel investors is a tedious and equally daunting task. Investors who have spent considerable time analyzing different proposals are diligent and sometimes intimidating.
You don’t want your investor to score you negatively even on a minutest of a mistake and so you make sure things are wrapped and tied up neatly and are well organized.
So how do you hit the right spot and score a brownie point?
Who are Angel Investors?
Angel investors are mostly individuals, closely knitted in networks that even are corporates and firms nowadays, are those who provide pecuniary backup to young businesses they fund worth investing in against ownership equity or convertible debt.
They extend funding at the very initial moments of a start-up and hence are called “angels”. But it definitely doesn’t mean they are elusive just because they are “angels”!
What’s the good news about angel investors?
There are a number of people out there interested and on the lookout for projects and business, ideas to bet their money on and take a leap. Though this definitely doesn’t mean they will be easy going or will give in with ease.
It won’t be a smooth sail. But funding is of high significance for a start-up to actually start up. Getting funds out from the pocket of investors is no piece of cake but an attempt has to be made.
Here are some tips that might help you to easily slide into the notice of your potential angel investor notice and step out of the room with the deal packed tight.
Tips to impress your potential angel investor
Favorability of market dynamism
The market you plan your business to be part of is dynamic and ever changing. Angel investor will be interested to know the chances of your survival in initial years in the dynamic environment.
Once you survived, procured a customer base, how will you leverage the market opportunities and grow in future is second concern. Expansion possibility, a successful one, is what investor is keen on knowing.
The market we operate in is massive and how can your business idea make it’s own room and flourish is what investors wants to know.
Be prepared for answering on how big the market is expected to grow in the next few years and the growth drivers.
Peculiarity of product
Impress those investors with what your product has got and what its launch in the market can fetch them.
There are thousands of goods and services already floating in the market and surrounding customers. What is the singularity that your product has that will drive customers to you and give you an edge over your competitors.
A product is the key to unlock the door of funding. The uniqueness of your product is not just a mere manifestation of your ability to gather a good customer base but also push your rival to the edge.
This information is highly valuable to your investor.
Hit the bulls eye with start-up results
Begin with a brief about your purpose, vision, and goals. And then land onto the results that the start-up gives.
Drawing attention to your idea through impressive results in terms of revenue, edge over competitors, possible number of customers at the start and many more like can prove a favorable scheme.
Providing ballpark figures and sparing your investors with tedious and tiring listening of the entire process of execution of the business idea and highlighting upon what it will fetch them and how much, is more productive.
Clear business model
While in talk with investors you definitely don’t want to give an impression that you still have a lot on your plate to deal with.
Be ready with your business plan, a clear and unassailable one, to show your passion and enthusiasm for your business idea.
Sort out matters of delegation, production and logistics, team in game, revenue models, organization hierarchy and chain of responsibility and accountability.
Present yourself as a passionate founder with skin in the game.
How will you connect with your customers?
Customers are the lifeline of a business and investors henceforth want to know about your interaction with them.
Make sure that you prove your positive relationships with your customers to your angel investor or your investors.
Be vocal of all qualitative aspects you will focus on to develop a connection with customers and keep them engaged with you.
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So now that you know how to get onboard your soon-to-be investor or angel investor, you must pull up your socks and put that tie on, and set the stage.
Put on a show that you will be unapologetic about even if it fails to get an angel investor in your kitty for it is hard at times to hit angels at right spot sometimes.
But keeping in mind some tips, sticking to them, and giving it your best shot, investors/ angel investors ain’t that hard to impress.