There are a number of constraints that a new startup faces, when it comes to launching the business and the biggest of them is the financial constraint, a constraint that highly influences the make or break of an enterprise.
It is hard to secure the financial aid for such businesses through the traditional means as the viability is not definite. In such a case, it’s the angel investors that come to the rescue. The angel investors are the investors that invest in small start ups or entrepreneurs; they provide one time injection of finance into the company to propel it out of the difficult initial stages. Such investors invest in the entrepreneur rather than the viability of the business and therefore they are highly looked out for by the new hardworking generation of entrepreneurs.
Getting such an investor on board is a blessing which drives a business comfortably through the rough initial patch.
Listed here are five simple steps to make sure that you woo your investors flawlessly.
One – The biggest allure is that of profit
When it comes to investing the only thing that the investors are concerned with is the viability and the increased profit margins. The investor is not in, with the aim of saving the business rather she is there to double her investment. If you wish to drive the flow of angel investor’s finance in your direction then you must prove your worth, either by your past success in business ventures or by your healthy position in the industry. So, when aiming to entice an angel investor, make sure that you are in a good position with your idea and working to ask for the money.
Two – Know your numbers
There is nothing like a confident entrepreneur having complete knowledge of the targets and the profits that he is dealing with. When the knowledge that you possess is complete and accurate, it will increase your confidence and help you in tackling the queries of the investors with ease. When facing an angel investor make sure that you are adept in the knowledge of your present and past numbers like gross profits, sales, expenses, income statement and balance sheets. Such knowledge of the facts, makes you come across as an informed and diligent entrepreneur, which further makes you a fetching investment.
Three – Explore the detail
A well-informed businessman surely specializes in predicting the market trends and the behavior of the target groups. Be the smart entrepreneur and procure knowledge to such an extent that makes sure that you can easily predict the future of your product, the behavior of the consumers and the trend of the market. Therefore, research & development is a must when you enter into a certain field of business. Such research & development leads to a solid plan in place which is sure to allure the investors.
Four – Target an investor belonging to your industry
There is more fun in playing the field when your hard work is coupled with the knowledge and the experience of the play area, so make sure that the investor that you target for your business belongs to the same industry. The angel investors are known to have deep experience in the particular industry that they invest. Thus, when looking out for the right angel investor, reach out for the investors operating in your industry, as their experiences and contacts will greatly benefit your business.
And finally, Make yourself Irresistible
The prerequisite to charm an investor is to make sure that you come across as a bankable and profitable option and not as a sinking ship in desperate need of the finance. The purpose of the angel investor is not to bail you out of a desperate situation rather it is to make profits whilst you reach your success. If you are well aware of the your core competencies and are working hard improve your position in the industry then it is surely going to be a cakewalk to beguile your investors, as all they look for is the thirst for success and the hard work put behind such a goal. And when such a promise is evident in your working, you would be a delight for the angel investors.
The contemporary approaches listed above will help you get an angel investor aboard. The task of proving your worth is complex, but when gone about with focus and direction, it is bound to lure the investors and make you reach success with ease.