How to prepare to meet with an angel investor
If you are going to be meeting with an angel investor there are certain factors that you need to consider long before you sit down with him or her. If you are aware of certain considerations you can prepare better and increase the chances that you will gain the attention and the investment of the angel investor that you are meeting with. The angel investor that you have gotten a meeting with will expect you to be prepared and ready to answer to certain questions. The tips listed below can help with that. Here is what you need to know about how to prepare to meet with an angel investor-
- Know what time frame you are working with-It is important to keep in mind when you need the money. Working with an angel investor is not an overnight process. The process of working with an investor will require time for planning, documentation, meetings, and other details. You should have a clear understanding of this before you begin the process of finding investors. In addition, if you are trying to raise investment capital for an existing business you will still need to run your business while you are doing this.
- Have a solid number in mind-One of the major complaints that is reported by angel investors is when they meet with a business owner who doesn't really know how much money they need. Whether out of a false sense of modesty or a lack of research if you can't come up with a solid number to give an angel investor then you may be turned down. By not having a number in mind it also weakens your professionalism and credibility. Do the research that you need to do ahead of time and be prepared to let your investor know how much you are looking for.
- Keep in mind your relationship with the angel investor-It is important to keep your relationship with the investor in mind before you proceed to ask for money. You want to ask the investor to put money into your business when the timing is right. If your angel investor is someone that you already have personal contact with then you will know when this will be. However, if you are meeting your angel investor for the first time it can be beneficial to have a couple of interactions before you ask for investment money.
- Be able to clearly show your business plan-The bottom line is that you will need a well written and thoroughly researched business plan to show any angel investor. Your business plan will function as the tool that will get the interest of the angel investor in putting money into your business. Because of this it cannot be overstated as to how important your business plan is. You should make sure that you have taken plenty of time and based your business plan on the correct amount of market research before you write it. Remember, that your angel investor most likely will have seen many different business plans and will be able to easily determine how much work you have put into yours.
- Consider what your personal investment will be-Finally, it is important to consider what your personal investment will be. Your angel investor will want to see what you are willing to risk in terms of making your business a success. You may need to put in some of your own money and/or offer up collateral. It is a mistake to assume that you will be able to get a 100% investment for your business without you having to risk any of your own money.