4 things angel investors love

We’ve looked at the pros and cons of angel investors. Now it’s time to grab their attention and fund your project. So how do you attract these mysterious financiers?

By Craig Falck for Africa Report.
Photograph:  © Pavel Losevsky | Dreamstime.com

If you want investors to part with their money and invest in your business, you’re going to have to bring your A game and put on the performance of a lifetime. Fortunately for us, angel investors have a soft spot for 4 key elements in your business proposal:

• Preparation: Don’t go into your meeting unprepared. Have your battle plans drawn out and show the investors that you mean business. Convince them that you’re serious about making a success of your business by including information about how much you’ve invested yourself, what you plan to achieve with the enterprise, and exactly why you need their help.

• Demonstration: Show investors a physical unit or demonstrate your service. The more people can see, touch, feel and experience, the more likely they are to buy into it. If you can show a possible investor a prototype or test unit that actually works and does what you claim, you’ll be one step closer to receiving financing. This will convince them that you’re on the right path, especially if you’re already at the stage of the game where you’re testing concepts.

• Research: Knowing who you’re looking for is key to getting angel investors to invest in your business. Approach people who are into a completely different industry and you’re not only wasting their time, but yours too. Instead, look for past industry leaders and success stories – more often than not these people stay in their industry and look to help young up-and-comers, not unlike yourself.

• Character: Now here’s the tough part. If you want to ask someone for money, then you’ll need to lose your ego and learn to be humble and thankful. Never stop being strong-willed and persistent though. If you’ve got what’s perceived as an attitude problem, word will spread and you’ll have a better chance of finding the Tree of Life than a funder for your project. Show respect and that you appreciate all the financial help that you may get. Angel investors often give knowledge and industry wisdom too, so being amicable and cordial paves the way for a lasting relationship.

Securing funds from investors can be tricky, but if you know what you’re up against, nothing is impossible.

Source: http://www.stengelsolutions.com/tips8.htm