An increasing number of people across the globe are looking for funds to start their own business. These overly enthusiastic entrepreneurs-to-be have their eyes on the end goal and are eyeing to become the next Michael Dubin or Elon Musk.
In the quest to start your business, you are up against numerous competitors. From looking for capital to pitching your idea in front of your customers, you will be competing against numerous other individuals.
The first step of the process is generating the required funds, for which you will have to rely on investments from Angel Investors.
Here we take you through tips for landing an investment from angel investors, with a special focus on what they look for the most in new startups.
Narrate Your Story
Every brand has a story. Every entrepreneur has a story. Make sure your story is worth telling. Angel investors are not just investing in products or services, they’re also investing in humans! They want to know your story, your brand’s story.
Tell them how you got to them. Tell them how you first came up with your idea. Tell them the factors that differentiate you from the others. Tell everything that is worth telling. Concoct your brand story, and present it right in front of the investors. Let them know how you plan to service the world one step at a time and that your business heavily depends on their investment.
Solve a Problem
The product you are thinking to launch should be able to solve a problem. Communicate that problem to the investors. Let them know a personal experience where you were troubled by this problem.
Help them relate to the problem and the benefits of the solution. Even if there are similar alternatives within the market, make sure that you are able to communicate how your product or service is different than others.
Have a Business Plan
A business plan is an absolute necessity and should be ready with you.
While there are multiple formats for business plans available online, you can go for one that includes the following:
- An executive summary
- A summary of the company and mission
- A market analysis of the current market you are going to penetrate into. The analysis should include SWOT, PEST, customer acquisition strategies, competition and barriers to entry.
- A model for revenue generation.
Know your Exit Strategy
Entrepreneurs that have an exit strategy almost always fall in favor of Angel Investors. Your plan for leaving your business should be thoroughly planned. Your investor might ask you for a predefined path that you will follow if a larger company puts up an offer for your brand.
Follow these tips and you will be well on your way to landing an agreement with an angel investor.