4 Things Entrepreneurs Should Avoid While Approaching the Investors 

When an entrepreneur seeks funding, various problems come in the way; The entrepreneur should tactfully handle every obstacle and move toward his aim.
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Nov 21,2019
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  • 12 Mins Read

In today’s time, grasping knowledge has become easy since they are enormous sources available to deliver information instantly. One of the crucial information sources is the Internet; the Internet has eased the lives of people. Now, people can know about everything from education to food recipes. Further, they can ascertain information about entrepreneurship and how to pitch an angel investor. 

Essentially, angel investors are learned professionals that infuse money into a business by apprehending its potential and future growth. Besides investment, they aid in expanding the business and in the decision-making process. 

Knowing the significance of angel investors in the business, every entrepreneur presently looks for angel investors which can guide them in the long run. So, while approaching angel investors, entrepreneurs need to behave in a certain manner to make their pitch-perfect and increase the propensity of receiving funding. 

Things to Avoid While Seeking Angel Investment 

When an entrepreneur seeks funding, various problems come in the way. The entrepreneur should tactfully handle every obstacle and move toward his aim. Some of the general problems that he can face are: 

1.Don’t Be Frugal 

In the beginning, entrepreneurs start focusing on saving their money rather than investing in the right place. Capital is invariably a crucial part of the investment and thus, should be used effectively. 

Entrepreneurs need to put their money in sources which, in turn, lead to an increase in the company’s worth and revenue. They should invest money in purchasing new marketing tools like SEO, SMO and digital marketing. 

2. Don’t Hop without Practice

Ideally, every entrepreneur thinks that his business is one of a kind and deserves a push! However, in reality, there are hundreds of businesses in the market that seek attention from angel investors. Thus, an entrepreneur should not have a misbelief that his business idea is unique. 

For catching angel investors’ attention, an entrepreneur needs to prepare in the right manner. He needs to begin working on pitching and thereon, exhibit investors as to why your startup can be the next unicorn. 

3. Don’t Stick to Short-term Goals, Plan Long-term Goals Too 

While knocking the doors of investors, it is crucial to understand as to why they seek interest in an enterprise. To build the interest, firstly, the entrepreneur needs to plan out the course of his business for the next 10 years. Secondly, he needs to demonstrate where his business directed and how it can be the next big thing. 

The businessman would have to ascertain whether his business will make a societal impact or make technological advancement or address elementary issues. After doing so, he will have to create a blueprint of the coming years and accordingly, present in front of the angel investors. 

4. Don’t Hurry, Take Time to Find the Right Fit 

When all strings are aligned, don’t hurry to fasten a knot. The entrepreneur should take time and ponder before sealing a deal. At times, quick decisions are not the best decisions. Therefore, the entrepreneur needs to discern which angel investor is the right fit and help his startup accelerate. 

For that, the entrepreneur should take off the pressure to meet a fundraising deadline and try to network in the investment segment. Networking will lead a business to comprehend the market better and also choose the right investor, which not only infuse capital but also guide him. 

The above-cited mistakes should be averted by the entrepreneurs and seek the right guidance. Finding the right mentor will help enhance the business geographically and financially as well. 


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