How to Find and Woo a Business Investor or Angel Investor
If you're trying to get funding for your new business idea and all the banks have rejected you, your next option is to seek an angel investors. Angel investors can be anyone from your professor to a venture capitalist who you've never even met. The only thing that most angel investors are concerned about is whether the idea you have in mind has a solid potential to make money in a reasonable period of time.
Other People Are Reading
Instructions
-
-
1
Write a full business proposal outlining what your idea is all about, how you will execute it, what initial investment you need, and how much you think that the company will make over the next three, five, and/or ten years. See the Resources link below for a full business plan outline.
-
2
Go to GoBigNetwork.com to search for angel investors in your area. Be sure to narrow your choices down to investors who are specifically looking to drop money into certain industries. Find out the minimum and maximum investment of each angel. Read up on each potential investor--find out what they value. Once you know the investor's likes, dislikes, needs, and values, you can personalize your proposal and/or introduction letter to target the investor's requirements.
-
-
3
Ask the family and friends closest to you to be your angels. You don't have to ask them for one large lump sum, but rather small contributions towards your business. Tell them that you can either arrange to pay them the money back over time (with or without interest depending on the relationship) or give them a small stake in the business. Just as you would with any other angel investor, present your family and friends with a professionally written business proposal (quick and to the point explaining the business in layman terms).
-
4
Post an ad on Craigslist.org with a general description of your business idea, such as "I am seeking an angel investor for a minimum $500 investment for a new software company." Talk about the type of return your business can bring the investor. This will increase the chance that they will contact you for more information, and could lead to a deal.
-
1
Tips & Warnings
Always be very professional when dealing with a potential angel investor. Investors need to be reasonably assured that you will represent yourself well to clients and customers, and work hard to build a successful business.
Resources
- Photo Credit UNH Connection
