Angel investors routinely turned down nearly 75% of every single investment proposal they are presented, and some reject these kinds of opportunities even more frequently than that!
Some of this has to do with the fact that angel investors aren’t very often looking for another “me too” kind of business or opportunity, but a lot of it has to do with the fact that many angel investors are looking for a lot more from the doors that are seeking funding from them.
If you are going to be presenting to these kinds of investors in the future, you’ll want to be sure that you are doing absolutely everything you can to increase your chances of success. Here are some tips and tricks to help you do exactly that!
Prove that there is potential for a tremendous return
There isn’t an investor on the planet that is going to provide you with any money whatsoever, any amount of funding all, without knowing that there is some real potential for a tremendous return on this investment in the first place.
Angel investing involves a tremendous amount of risk. These investors are very smart, very savvy, and aren’t going to throw money at anything that doesn’t seem like it has the potential to really pay off. Show them – don’t tell them, but show them – the potential for profit that you present.
Have a rock solid reason for investing
Just wanting funding isn’t reason enough for any serious investor to provide you with access to capital you need to grow your business and take advantage of new opportunities.
Many of these investors have been incredibly successful entrepreneurs past, enjoy the thrill of creating something new and something successful, and aren’t afraid of challenges or risk. You’ll want to make sure that you have a solid reason for bringing this specific investor or these specific investors on board or they may pass just because they aren’t passionate about your project.
Have a business plan board in concrete
The back of a napkin may be the perfect space for the original conception of your business, but you’re going to need something a lot more stable, a lot more steady, and a lot more strategic if you’re going to gain access to the kind of funding you are looking for from these types of investors.
Make sure that you have a full and detailed business plan ready to rock ‘n roll, that you have a solid vision for your business and your company moving forward, and that you everything about your business, industry, market, and customers before you dive right in.
Show them that their investment is intelligent
The overwhelming majority of angel investors out there aren’t just looking to loan business owners ignores money, but are instead looking to take on a minority equity ownership position. You’ll want to show these people with your business and your people is smart and savvy and has the potential to provide them with the equity position they are hoping for!
Morris Edwards is a content writer at Singapore Company Incorporation Consultants Pte Ltd, he writes different topics like Top Habits Of Successful Entrepreneurs, Importance of a Business Plan for Entrepreneurs and all topics related to Business and Incorporation of company in Singapore