When you start up a new business from your home, it can be difficult to find the seed money to get underway. So-called angel investors, who are generally the first ones to come on board and help to provide that seed money, can certainly assist in that regard. Angel investors are always searching for up-and-coming businesses with good prospects because they know that the initial investment can be relatively low compared to the potential upside involved with finding a real winner.
Yet simply throwing out your business card and expecting an angel investor to jump in and fill your coffers is unrealistic. Much like reeling in a big fish, you have to know just the right lure and have the patience to slowly reel them into the boat. Any missteps could cost you the opportunity to secure the kind of funds that you’ll need to get started. Considering that you often don’t have many chances to pull off that kind of funding, such a mistake can be extremely costly.
If you’re wanting to raise a small business loan then use Finance District as your broker. In the meantime, here are three ways you can ensure that you have a real shot of your angel investor coming aboard.
Excellent Preparation
This one cannot be overstated enough. If an angel investor, who likely has a busy schedule and not too much time to waste, walks into a meeting with someone who promptly fumbles their way through a sloppy presentation, they generally won’t stick around too long. That’s why it’s imperative that you get your act completely together when you present to them. Rehearsal is a good idea, as are intricate visual aids. Keep it concise, again in consideration of the investor’s busy schedule, but make sure the most important information is there.
Show and Tell with Numbers
There should be two main aspects of your presentation to angel investors. First, you should have a detailed explanation ready for the product you’re selling or the service you’re providing, including a quick demonstration if applicable. The idea is to show how unique and potentially profitable your business will be. The other main component is statistical figures that outline what your projected budget will be, the sales goals you hope to reach, and the profit you expect to earn. Make these realistic and prove to the investor how they will get their money back along with a tidy profit.
Wine and Dine
Whether it means taking them to a fancy restaurant (or having someone cook them a special meal) or providing some swag from your business, you can help sway investors by coming up with little touches. If they’re undecided initially, those little extra efforts could be just the thing which ultimately helps make up their mind.
Above all, strive for a tone of friendly professionalism, and don’t make it too much of a hard sell. Use your instincts as the presentation is taking place to make any adjustments, and, if you believe in your business, your investor will likely believe in you.
