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What Business Angels Need To Know Before Investing In Your Business By Entrepreneur Investor Network You’ve heard that angels can help you with your start your venture. You’re excited about the prospect of receiving start up capital and working with an experienced entrepreneur who’s ‘been there, done that.’ You’re eager to for them to teach you everything they know.
Before you get too excited, there are things you need to know in order to attract a angel to your business. They are not just going to give you their hard earned money without some assurances on your part. Think about it – they did not become successful by being haphazard with their deals. Here is what an investor will look for before partnering with you.
A great idea – the investor must believe that your idea is a good one and in a market that has the potential for growth. (An example of growth potential is technology or health, but is certainly not limited to these.)
A solid plan – this needs to be a comprehensive plan that includes 5 year projections for income, expenses, etc. Include your vision and mission statements, marketing plans, logos, tag
lines, market share, goals, and niche markets. Make sure your plan includes graphs and charts. Make it look professional: if your investor thinks you wrote it with your buddies while having beer and chicken wings in your basement, they will run the other way faster than you blink.
Your commitment – they will want assurances from you that you are a dedicated, self-starting, self-disciplined entrepreneur and that you will do whatever it takes to succeed. If you are just doing this as a hobby, or just to ‘see how it goes’ you will find yourself on your own.
Your skills and experiences – you must be able to bring something to the table. Do you have a degree in business? Do you have past experience? Have you run a successful in the past? These are all questions you should be prepared to answer.
Starting a can be exciting as well as nerve-wracking. A angel can help you immensely by providing everything you need to get up and running fast. By keeping the above points in mind, you will have a greater chance of attracting a angel and ensuring your success.
One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed. |
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