The term “Angel Investor” has become very popular in recent years. For those who are still new to this term, an angel investor can be a person or a small business that has substantial net worth and is interested in investing in a private company that is in its early stages of development. New business owners try to find those types of investors who are willing to offer the initial loan to get the business going. However, the main point of difference between angel investors and normal investors is that the former seem to expect a high ROI or return on investment.
How to find an angel investor?
1) Near your home or workplace: You can start by looking for an angel that is close to your place of business. Although this is not a mandatory criterion, however, a person who stays close to your business area can easily be courted into investing funds in your business.
2) Family and Friends: The first search for your angle investor should start with your family and friends. Often times, people close to you will be willing to invest in your business, but if you don’t reach out to them, they may be hesitant to take the first step. However, most critics are of the opinion that this is not a good way to start a business. Involving your family and friends in the business could create gaps in your relationships and could negatively affect the business.
3) Impressing Angel Investors: You need to attract angel investors and a carefully designed business plan is imperative. It would be better if you could present the working prototype of your company. The angels would like to see for themselves if their investment will be able to give them a high return.
4) Be part of your company: To prove your worth to your angel investor, you can allow them to be part of your company. They can help you establish your business and can impart their valuable information and advice on how to run your business. This is a great way to earn their respect, and it will also help them understand that you are real.
Finding angel investors will not be a problem if you have the determination and hard work to start a successful business.