Try These 5 Simple Strategies to Attract Angel Investors

Giving kickstart to an idea often needs a minimum investment. Most of the startups invest their own money at starting, when it comes to take their business next level, they need an angel investor who pours money into their business. There are many entrepreneurs who established and accomplishing their business growth without seeking investor’s money. This happens only with those entrepreneurs who are backed with huge money or with small scale entrepreneurs who doesn’t need much investment. But it won’t work for large scale businesses. So a large scale entrepreneur has to seek either a loan or an investor.

If you approach a loan officer for business loan, He will give you the list of formalities need to be satisfied and you may need to produce number of documents for security reasons. After that bank will consider your application, calculates how much creditworthy you are by analyzing your credit history and upon that bank decides how much loan can be sanctioned to your business. The bank may take 2-3 months time for follow up procedures. But no guarantee that bank will sanction full amount of loan that you requested (as per bank norms and rules). So an another &  ultimate option would be  finding an angel investor.

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Is it necessary to find an investor?

You should ask this question to yourself, it depends on how much investment your business needs. If your business needs indefinite money, i.e. if you don’t know what it going to cost you for future operations you definitely needs an angel investor who invests in your business as per its requirements. But a bank can’t do that, it has got restrictions and rules to limit the amount of loan  you’re going to get. But that willn’t be a problem with an investor, he is free to invest his money with no such restrictions.

What you need to possess to attract angel investors?

1) Business Plan: One thing you need to remember, investor always expects a good return on his investments so you should make him feel secured on his investments. Give him a transparent details of your business, you can do that by creating a good ‘Business Plan’. A good business plan alone can bring angel investors to you.  Read this article, to know the importance of business plan and how to create it .

2) You should have pitching answers for all those investor’s questions regarding ROI(Return on investment), Profit and Turn over. Investors would be expecting good returns on his investments so you should be able to produce right strategy that makes investor feel secure.

3) Send your Business plan to almost all angel investors in your circle or your friends circle or your family circle. At the end of your business plan, give a clear picture of your business strategies, show them how different you are, how unique your approach is and how you going to make it so called profit (ROI).

4) Remember, “Investor invests in you, not in your ideas”. If you have any kind of experience than don’t hesitate to put it in front. Make the best use of your past works and your business history. If possible showoff your expertise and business talent. This will help angel investors to entertain you as an ultimate option.

Best of all strategies, Follow the below strategy strictly, you will definitely find 1 or 2 angel investors.  Trust me!

5) Make the best use of Linkedin, which is a largest network of professionals, there you will find angel investors from every corner of the world. Create your’s and your company’s Linkedin page, There are numerous number of Investor’s groups on Linkedin which are created by several angel investors. Join those groups, connect with the group members, Post your business details and your business plan onto investor’s group, By doing that you will be able to reach all those angel investors who are part of that group. Send individual invitation to every investor regarding your requirement.

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About shashikanth hogtapur

Co-founder of Feedose. A professional Blogger, experienced writer of business, marketing and technological issues. Also a Web designer, SEO and Social Media Marketing expert.

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