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 an individual or a small business that has a 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 these types of investors who are willing to offer the initial loan to start the business. 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 place of business: You can start by looking for an angel who is close to your place of business. Although this is not a mandatory criteria, however, a person who stays close to your area of business can be easily courted for pouring funds into her business.
2) Family and friends – Your first search for your angular 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 make the first move. However, most critics are of the opinion that this is not a good way to start a business. Bringing your family and friends into the business could create gaps in your relationships and could negatively affect the business.
3) Impress angel investors: You need to attract angel investors and for this a carefully crafted business plan is a must. It would be better if you can 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) Being part of your company: To prove yourself to your angel investor, you can allow them to be part of your company. They can help you set up your business and can provide you with valuable information and advice on running 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.