Securing an investment from an angel investor is considered as one of the most difficult aspects of establishing a business startup. For many, this is even harder than coming up with a good idea for a successful business venture.
Fortunately, there are numerous angel investors out there who can provide financial support to business startups that have potential to make it big in the market. But for entrepreneurs, the common problem is not finding them. Rather, they have a hard time securing the nod of these angel investors. Here are some ways to improve an entrepreneur’s pitch in order to be able to secure investments from angel investors:
Know the audience
A business pitch should vary depending on the character of the potential angel investor. Entrepreneurs should not rely heavily on a “standard pitch” and develop something that could connect more to the possible partners. A pitch should vary depending on various factors such as age, gender, background, and knowledge on the specific market, among others.
Be in charge
Business owners must show to their potential angel investors that they are the ones in charge of the startup. One can get the trust – and later on the deal – by showing that he or she can effectively manage the business to make it successful. In order to do this, business owners must show their expertise on the market as well as exude confidence that the venture will succeed.
Entrepreneurs, however, are cautioned not to show too much confidence on the business. After all, potential angel investors prefer realistic figures over imaginary ones.
Present relevant information
During presentation of business pitches, a number of business owners often start by presenting too much information as regards the market and the business operations itself. Most of the time, this approach is seen as a move that often ends the potential deal. Rather than presenting too much information, entrepreneurs must stick to basic data that will inform angel investors about the market and keep them interested.
Among these data include the current status of the market, as well as the basic figures concerning the business such as the capital and potential revenue in a matter of years.
Finally, business owners must keep it practical when presenting before potential angel investors. While it is necessary to inform them of the business operations, going through every single detail of the business is not an appropriate content for a pitch. Instead, entrepreneurs should just highlight the said information and ask the potential partners if they want to know more about this.
by Mark Favre, www.funded.com