Pitching To Angel Investors

When you are seeking out ways to find money to start your business you need to consider all of your options. Are you considering using your own money or using a bank loan? A bank loan can work but it does have a lot of tight restrictions and things placed on it and this can make it hard to get the loan. You also need to deal with other concerns like tight repayment programs on the loan as well as dealing with involvement from the bank.

Investing your own money is nice but most people do not have the funds needed to be able to invest it into a business nor can they assume that much risk. Pitching your idea to angel investors is a smart idea. The angel investors can easily help you out but they do ask for a few things in return like having some control over the decision making and product development. Look at what you will give up if you end up using an angel investor.

If you want to move forward with angel investors you need to be able to understand what they want from you. Find out what the deal will be before you go to them and start pitching your company. In the majority of cases the angel investor will ask to be convinced of your product or business within about 2 sentences to your business proposal. They want the information right away as they can instantly tell what types of businesses are good investments and which ones are the worst ones that will fail.

As you are making a pitch to investors you need to look at what you can do in order to convince them of your business and how it can solve problems. You need to really work on helping people to understand what your product or service is and to use it to help you say what you are solving with it. When people can see that you have a sure thing here, it makes it much easier on them to be interested in it and to invest in it.

Once you state what the problem is and how your product solves the issue you will then move into some customer confessions. You need to have references that show how the product helped them and to have information about how they are already telling others about the product. This will really help you in being able to have a stronger presentation as the angel investors can easily be convinced from the word of mouth program.

Keep the facts simple. Investors don't want to sit there for hours with a lot of paperwork to sift through. They want to see simple facts and they want to have something that is easy for them to read quickly to see if this is for them or not. If you use videos in your presentation, keep them short. They can become annoying at times and can make it hard on investors to understand what the point of the video is.

Open yourself up to spontaneity. The investors will ask questions and you need to be ready with answers. You need to prepare yourself to answer a lot of hard questions that the investors have about things like your sales forecasting procedure and marketing promotions you are planning to use. The more you can work on the program and properly preparing yourself, the easier it will be for you to convince them of the importance of your company and why this is an investment that they cannot afford to pass up.