As a small business owner, you’ve likely encountered your fair share of difficulty in finding funding in the past. However, the longer that you’ve successfully maintained a business of your own, the easier that it becomes to find funding. Once you have the proof of profitability and effective long-term planning, you’ll start turning the heads of people like angel investors.
Be prepared to invest a great deal of time-
Prominent angel investors recommend that you prepare yourself for lengthy conversations that go back and forth. Negotiations, specifications, paperwork, release of funds, and actually integrating these investments into your business model appropriately can be a very lengthy process.
When an interested angel investor talks, pay attention-
Have you ever heard the phrase ‘there’s a difference between hearing and listening’? Well, it is quite true, and you had better really listen when an interested angel investor speaks. If they decide to invest with you, they’ll own part of your company. Their every thought and opinion matters.
Make investments that are aligned with your business goals-
Angel investors do not want to see a pattern of robbing Peter to pay Paul. In other words, don’t take/use money needed elsewhere in order to increase your number of assets/holdings.
Be prepared to answer angel investors questions about all aspects of your business-
This ties in with our first tip. The lengthiest part of the process will be answering angel’s questions honestly and efficiently; as well as providing correlating proof.
Have a business plan prepared ahead of time that shows a profitable exit strategy-
An angel investor needs to see a viable, proven strategy for making a significant profit within an allotted timeframe. They need to know that they will make a very secure, handsome profit in return for their investment. But also that there is a clearly defined, effective exit strategy in place for them to actually withdraw their profits.