Angel investors are a helpful group of people with money to invest in new businesses and helping them grow.
Angel investors are also risk takers who will invest in you if you have a strong business model, industry knowledge and solid exit strategy.
Here are some tips to increase your chances of getting an angel investor interested in your business.
1. People person: Angel investors invest in people first and foremost so if you're charming, friendly, energetic and have a good head on your shoulders, you'll certainly stand more of a chance.
2. No ‘I' in team: You will need a management team with each member specifically chosen for their ability to contribute something significant to your overall business. Make sure you list all relevant credentials and skills to help illustrate your pitch and your business.
3. Pitch perfect: Practice makes you better. The important thing here is to deliver your pitch with articulation and be prepared for detailed questioning. Get yourself ready with enough facts and figures and the investors will have more confidence in you and your business.
4. Self-investment: Prove to the investors that you are confident in your business. If you can afford it, invest your own money towards the start-up of your business. This also projects your commitment to the business and motivates the investor to consider you seriously.
5. Plan well: Execute a strong business plan with specifics on why they should invest in you. Also, share the business exit strategy so they can foresee their returns on investment. As an added bonus, leave the option open for the investors to be actively involved with the business.
6. Research: Know your business, know your industry and know your market. Above all else, know your investors well and what they want. Your knowledge need not be extensive but as long as you are sufficiently able to handle the day to day workings of your business, they will be willing to teach you more should they choose to invest.