your password has been reset successfully, Please login again.

7 tips to get an angel investor on board

Angel investors are the essential component of start-up ecosystem. They invest at the earliest stage of any start-up. But how to get them on board?
BY Sanjana Surbhi
Feature Writer, BusinessEx
May 17,2018

At the initial stage, it's quite tough to get a loan from the bank. Therefore, at this point, your best option could be - angel investors.

Who are Angel Investors?

Also known as a business angel, informal investor, angel funder, private investor or seed investor, they provide capital to start-ups in exchange for ownership equity. Angel investors vary widely, but they are typically willing to accept the risk.

Here are seven tips to get your angel investors on board:

  • Make a plan: It is essential that you must have a good and innovative idea. If you are just starting, then make sure you have done enough research and development, explored your target audiences and markets so that you can easily forecastthe future of your start-up. These all will give you brownie points in front of the angel investors. You need to be unique in your approach as there might be a similar product as yours in the market. The investor would only invest if your approach is promising.
  • Tell them about your successful past business ventures: You have to keep a record of being successful with your previous ventures. This will give you a chance to prove yourself and get angel investors on board. Investors only care about making a profit and doubling their money. If youve been in business a while and have done relatively well then this is the best time to approach an angel investor.
  • Know your numbers: You must be aware of your profit margins, expenses, balance sheets and sales target. Don't be blank when your investors ask you such questions. Carelessness might ruin your business finances. Review these before meeting the investors. After knowing the numbers you can confidently answer the investors.
  • Go for the investors who are in the same industry: You won't ask a dentist to give a treatment to your dog. Right? In the same way don't approach those angel investors, who are not in your industry. They are experienced individual in a particular industry. So, as a budding entrepreneur, you should go for the investors, who had worked in your industry. As they will have a fair idea about it and they might give you contactswhich will help your business to grow.
  • Invest your own money in your start-up: Many investors might not invest money in your start-up if you are not investing your own. Think about it, if you are not ready to take risk why will the investors do so. By putting your own money in your start-up shows how serious and dedicated you are towards your business. So, keep this in mind. You might think it as an unnecessary point but trust me it's important.
  • Grow your network: Investors want to see how much hard work you are doing to promote your business and to increase sales. You need to grow your network for that and it is your job to make a presence in the existing industry. If you show the investors that you are doing your job properly then they will do theirs. Keep promoting your brand to get more angel investors on board and this will help you in growing your connections as well. Be active on social media.
  • Last but the most important is stay confident:
    Everything will be incomplete, without your confidence. Make it a point to show them how passionate you are about your work, how will you execute it and how you and the angel investor will gain profit. Show your sincerity, be diligentand trust me the investors will be tempted to work with your start-up.
Please add your Comment
SIMILAR Articles
April 22, 2019
The unifying efforts of different departments will help run the dealership smoothly. ...More
By Jaspreet Kaur
April 18, 2019
Apart from creating quality products, the health care companies should also advertise positive attri ...More
By Jaspreet Kaur
April 18, 2019
It is imperative to keep them updated with know-how and additional knowledge of the sector. ...More
By Jaspreet Kaur
April 17, 2019
With the progressing time, many people, essentially entrepreneurs, have adopted the idea of blogging ...More
By Jaspreet Kaur
April 16, 2019
The companies should relentlessly rely on digital marketing strategies and improve the overall marke ...More
By Jaspreet Kaur
April 16, 2019
India is presently considered the third largest hub for having a large number of startups. Thus, tax ...More
By Jaspreet Kaur
April 12, 2019
To reduce troubles of the startup as well as angel investors, the Indian government along with DPIIT ...More
By Jaspreet Kaur
April 11, 2019
The business owners should swot (study the market deeply) and form effective strategies with respect ...More
By Jaspreet Kaur
April 08, 2019
To ease the bumpy ride, the entrepreneur should follow important business guidelines which enable to ...More
By Jaspreet Kaur
April 08, 2019
For establishing a beauty salon business, the salon owner should work on marketing strategies, frami ...More
By Jaspreet Kaur
April 05, 2019
The recent headwinds have dwindled the Indian aviation industry, in turn, affecting the low-cost ope ...More
By Jaspreet Kaur
April 05, 2019
It is the leader who manoeuvres the employees or subordinates and facilitates in achieving the compa ...More
By Jaspreet Kaur