Can there be a small business owner, who denies the assistance of angel investors? Certainly not!
Angel investors have helped so many businesses begin, scale and stay successful in the long run. The ultimate aim of an angel investor is to support budding businesses with more capital. And, there investments will be useful at some point in growth. This is why many business owners look for such investors during stages like development. What makes the process of working with angel investors challenging, would be the part where you need to find them! Indeed, it is very difficult to find an angel investor, who is more than willing to invest in your company.
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With this being said, here are few tips to help you spot that million-dollar angel investor for your company.
Know the investor you want!
The chances of you finding and connecting successfully with an investor will be high if you are aware of his/her profile. A typical angel investor might be different from one business to another. This is why you need to define your requirements ahead of time. Ralph Korman states that a typical angel investor, for an average business would be:
- Someone who makes an income of 100,000 USD or more.
- Someone who is between 40 and 65 years of age.
- Someone who has a net worth of at least 100,00,00 USD.
- Someone who has ventured in the field of business and entrepreneurship
- Someone who enjoys helping small business owners
When you hunt for angel investors, try to find people who are closer to your work and home. This is because angel investors will become active participants in your business. They will want to keep a close eye on what you are working upon. This means, your investor should be able to access your office by car or foot!
Network as much as possible!
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One of the finest ways of identifying angel investors for your company is by networking. This is when potential friends and colleagues start referring your venture to angel investors. But, networking is never a cakewalk. You need to wait patiently, and you need to communicate with people who truly matter. Everyone else cannot support you in identifying angel investors. Also, don’t consider talking to everyone on the streets about your venture. Instead, immerse yourself in the domain, and find masters of the trade. This way, you will be able to come across people who know or people who are successful angel investors.