Just Before You Meet That Angel Investor, Get These RIght
Most startups remain in the same spot as they lack the requisite capital to increase their chances of success.
This makes it hard for poor folks with great ideas to start their personal ventures. Some crumble on the way due to lack of finance while others die without a word about their plans.
The banks are no help as most proposals are not approved thus leading to the death of many companies at incubation.
This trend seems to be the feature of most start-ups as they are unaware that they could get help by a trading stake.
Where To Begin
For starters, you will need a good business plan to access the funds you need. Many investors are on hand to help however; the focus is on the angel investors.
This article is about how the participation of angel investors can make a difference.
Small businesses with good business plans can get a shot in the arm if they come up with a winning proposal.
The feasibility of such plans comes to the fore when it becomes necessary to seek for funds for expansion from other sources. If the plans are bad, then, the startup cannot expect to get the needed funds.
A feasible plan is one of the requirements that can qualify or disqualify a startup from moving on to the next stage. Where angel investors find them pleasant, they will look out for discrepancies.
On passing all the tests, the successful startup will be able to access the approved funds.
This makes it possible for entrepreneurs to fulfill their funding expectations while the angel investors can look forward to a growing stake in the business.
Defining The Stake
There are strict rules on what stake an angel investor can snap up in a startup. It all decides on how the business is evaluated, and what the agreed terms look like.
Some angel investors will prefer to have their investment repaid after a few years, while others will have the stake converted to shares.
What matters to the entrepreneur is that the needed funds are provided, and the terms are fair.
What the Startup Can Do
As a startup, some steps you need to take to give your business a boost when angel investors appear on the scene include:
Document Your Business Vision
Providing a clear picture of what you are doing or intend to do as a business is primary. No one would throw funds at anyone who has not got their priorities right.
So, get your vision clear, be a master at the facts, and be able to marshal them like the back of your palms.
Showcase What You Will Do with The Funds
Here is where many people go wrong. The numbers game does not come right for everyone. You can use the help of an accountant here to help you put the figures in shape.
You will need to explain the depth of investment needed so that the accountant can put the projections and modeling as they should.
Be Positive and Put on A Good Attitude
Positivity is great. You will need a good dose of this to get it right as an entrepreneur. Many of the world’s leading business personalities today did not always have it smooth.
That your proposal or business plan was rejected cannot be the end of your dream.
Sometimes, you need the persistence to be able to move ahead. Before then, know that if a door closes, another can open. So, do not let a temporary rejection eclipse your dream.
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