Gaining the attention of an angel investor takes plenty of wit and charisma but getting them to sign the dotted line to fund your business takes a little more effort and preparedness. Knowing what will garner their focus and impress them to the fullest can make securing the funding you need to start your business easier and, of course, less stressful. Start with the following to get the nod of that angel investor you are looking to partner with.
Impressive Revenue Stats
Knowing the numbers is imperative to swaying an angel investor your way. You need to come to the table prepared to win them over not only with your knowledge but also with your impressive financials. You should have a revenue stream ready to go and know your overhead costs as well as your product costs and markup.
Industry Knowledge and Experience
Being a newbie to a market can be a challenge in itself, but if you have a strong background that shows you know what you are doing in this arena, you may have a leg up. Angel investors will take notice of your potential and see that your expertise is valuable to the market you are looking to serve and be more willing to fund your business startup as a result.
Sound Business Plan
It goes without saying that you should have a business plan for your startup ready to go. Angel investors want to know how you plan to operate once you open your doors and a business plan can help provide the details to many of their questions. Give your business plan some time and effort as it can be the defining factor for an angel investor saying ‘yes’ to funding your business start-up.
Niche Products and Services
If your product serves a niche in the market that is not currently being serviced, the interest of your angel investor will certainly be peaked by what you have to offer. Finding where your business fits into the marketplace can help separate you from the pack and make your product stand out from other “me too” offerings. Angel investors want in on these opportunities, and you are sure to impress them with you savvy and entrepreneurial spirit.
Finding the right angel investor doesn’t have to be a challenge as Funded.com provides a bevy of resources and helpful advice right at your fingertips. Visit Funded.com to access our network of angel investors or for assistance with the development of your business plan.
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It can be difficult path sometimes once you decide to set up a good pitch on a site platform. Whether it be crowdfunding or raising capital from accredited investors. You will find many of the same attributes that are similar to finding the right pitch to attract views to your posting or profile.
Posting
Your posting “tile” is the image that show the image and the description in a rectangular box that is aligned with many other posting tiles. The top image can be from 1”-3” squared and the title is usually under or above the image. The describer or the short content that is directly below the image and title and is describer content box. Also on the posting tile will show what you are trying to raise, your industry, you location or other items of that might be specialized be each platform. Once the posting tile is clicked by user it will take you inside page(s) depending on the platform. It is important you use quality images and very catchy title with a description that is very to-the-point. Your capital raise price must make sense to how you have arrived at your capital asking level.
Your Inside Page
This is where your main image and other images of what you need to include. This has to also be very good images that shows your story, product or methodology. It can be actual photos of a process, or if the business is a fresh startup with no images, you can find advertised free images and art online, or purchase images from paid third-party websites to avoid any copyright infringements. Your content must be very clear and if lots of content to title each section and outline. Your inside page may have a section for a team bio. If it’s just you, it’s okay as lots of startups can be a one-man-show to start. If it allows you to post a photo of you, do so.
Support Documents
If you have a business plan, and the platform lets you include, do so. If you do not have a plan, then upload a cover letter about you and your company. It is always good if you are competing against other pitches and your pitch tile gets opened then next step is to show you have an attachment and have taken the time to put something together that the funder can take away or download.
Summary
It is always good when putting your best foot forward to have everything prepared to make the first impression by getting more traffic and interest to your posting and pitch. Making a good first pitch impression is really key and to rush to get initial interest would not be swapped out if it meant you lack on your Posting, Inside Page and Support Document material. Get a second opinion on how it looks and don’t be afraid to make changes earlier than later.
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How to Get Angel Investors Interested: The idea is to have a sound business model that can be demonstrated by a business plan to have merit with goals of actions on how the model will get to point A to B with the funds provided by the angel investor or venture capital.
1: Have a concept, service, or style of doing business that is new or disruptive to the industry. This can be a service product or even an existing one, creating a unique advantage over the competition. If it is something more standard like investing in a flipping house, you can find how you may be unique to other house flippers. If you want an investor for a franchise, you can give work experience or know how to set you on top with location and research invested into the franchise, so it shows it can be a success from the start.
2: Invest in a Business Plan and Pitch Deck. Investors and banks like to see you have some plan to get from point A to B and an exit strategy for the investors’ money. Business Plans can organize your startup or exist by including major elements like Mission Statements, Distribution Channels, Corporate Structure, Marketing Research, and Financial Proformas. Pitch Decks are the visual aid that can paint a picture and a concept flow in a digital format.
3: Don’t price yourself out of the deal, but don’t give in too much. Any Angel Investors know it has to be a win-win. So, spend time wisely getting some model company financial comparisons and values on how the new capital will create a new deal on the business once everything is in place and moving.
4: Chose your platform for getting your pitch out there: You can go with crowdfunding, which can be very effective in some ways. You can raise many investors but also risk not meeting your capital requirements. You can choose a platform with only accredited investors and reach out with a posting and support. This can effectively see profiles available of investors in the industry and reach out directly or through the platform, depending on the forum. This can effectively raise capital from only one source and help provide valuable synergy and even external promotion of your new business.
Planning and patience are essential when pitching an Investor or Venture Capital. Even down markets and economies can be the best time to launch. You may get more interest and less competition as investors are looking to make equity stakes in the following future successes!
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In this rapidly changing world, everything is shifting towards digitization, and businesses are also transforming their operations through technology to provide more reliable, timely, and convenient solutions to their customers. Digital transformation of small businesses will help provide better customer services, product development, and innovation in different aspects of the company.
Small businesses in their early phase can leverage this opportunity by implementing digital transformation as this will not require much effort compared to any established business. Transformation into the digital industry is not just about implementing the IT systems and installing applications; instead, it’s a cultural shift that completely changes things.
A recent example is the catastrophic disaster “COVID-19” that has changed all the ways of doing things and created the urgency to develop businesses that would operate digitally. Companies that will not adopt cutting-edge technology and transformation will risk losing their market share and will be left behind.
Before coming to the actual ways of transformation, let me first highlight the numerous benefits that small businesses can enjoy after digitization.
The transformation will help the organization in better decision-making by making available accurate and reliable data of every segment with the help of analytic tools. These tools also assist in collecting customers’ data that can help marketers make well-informed decisions. These valuable tools are also beneficial for both managerial and strategic level positions.
Large Organizations always put tremendous efforts into fulfilling customers’ expectations. Therefore, adopting or integrating technology into your business process will add immense value to the product that will fulfill customers’ needs and help small businesses to grab the market share before their competitors.
Companies that undergo the process of digitization improve profitability and reduce costs by cutting off their irrelevant expenditures. According to SAP, 80% of the businesses implementing digital transformation report increased profits. These profits can also be used for the future expansion of trade and more advancements in technology to have an edge on competitors.
Valuable tools and devices have reduced the hassle of maintaining employees’ attendance, salaries details, and stock management and increased the coordination between various units. Providing employees with the right tools can streamline workflow and improve productivity. Automating tasks using AI tools will integrate data throughout the business and promote a digital culture that increases collaboration and encourages transparency in the workplace.
Interestingly, most small business owners are making efforts to make digital transformation a vital component of their organizations. They need an excellent strategy to digitize their most critical business operations and start making huge profits.
Whether you are running a small business setup or just getting started and want to transform your business digitally, a well-established strategy and a well-designed plan can help you get the most out of your efforts and investment.
Here are the six steps to successfully implement digital transformation for your small business
Involve every level of the organization in the change process
To make digitization successful, it is vital to have a strong vision and the right culture in the organization that embraces digital initiatives and encourages employees in this transformation process.
It is also essential to consider your staff concerns since many employees feel threatened by the implementation of technology and automation. Many business owners have faced the challenging task of tackling employees resisting digital transformation change.
To get out of this resistance from employees towards change, demonstrate the benefits of the technology and provide necessary training to your team. Empower them to use technology to achieve their life goals.
Empower employees with the Data-Driven Decisions
Data recreates a vital role in the decision-making process. Hence, it must be accurate. Educate your team regarding how to extract data using different analytics tools and make decisions out of it.
Accurate insights regarding customers will help you understand exactly what the customer wants. Then, your product development team can design the relevant products and services to fulfill the customer’s expectations.
Ensure smooth integration of Business Systems
All business systems should communicate smoothly to streamline operations, automate workflows, and increase efficiency.
The actual point comes when you Integrate all business applications (e.g., Finance, Procurement, customer services, and operations). Then, it allows you to enhance collaborations between various departments and make a customer-centric organization.
Cloud computing makes it very smooth for small businesses to connect various applications simultaneously. It allows you to streamline workflow and manage different business functions simultaneously.
Approach and collaborate with IT Consultants
Mainly at the initial stage, businesses don’t have a large budget to hire a large IT team. Instead, you can outsource most IT tasks to maximize your resources. The first target would be to focus on areas that are the backbone of business and gradually increase investing more when your business starts to grow.
Try to work with consultants that provide in-budget solutions compatible with your company’s existing infrastructure. They should also help you identify areas that generate a high Return on Investment.
Customer Care must be the top priority
We always heard that the customer is always right. Take their views about your product and service because there is always room for improvement. Customer feedback is an essential element that encourages you to improve your product and add more features that help you to stand out.
Make a Website for your customers’ convenience, where they can view different products offered by you, make purchases and give feedback that ultimately persuades other customers to make a purchase.
The biggest challenge for business owners is to make sure the data management and security protocols remain in sync. Data protection requires IT solutions and strategic business initiatives due to the strict regulatory requirements and may face harmful consequences in a data breach.
In the end, evaluate and highlight areas where technology can help you make an impact. As a business leader, keep in mind your primary goal and create a culture for continuous learning, collaboration, advancement towards digitization, and innovation in every area that requires transformation. All of the above factors can make your goal of digital transformation achievable.
Funded.com is the leading platform for accredited investors network worldwide. We monitor and provide updates on important funding events. Angel Investors and Venture Funding can be a key growth for a startup or existing business. Whether it is a first, second or third round financing having a strategic alliance with an Angel Investor or Venture Capital financing can propel a business to the next level and give the competitive edge.
Chances are this is not your first business plans if you are considering starting a new business. Studies have shown that today’s successful entrepreneurs have tried 3 or 4 times before to start a business sales. Sharing that information is not meant to be discouraging though. It’s meant to be motivating because true entrepreneurs don’t give up easily.
In fact, you may like to know that Bill Gates and Paul Allen started Microsoft in 1981 after 3 prior failed business attempts. The 3 failed attempts were The Lakeside Programmers Group in 168, Traf-O-Data in 1970 and Micro-Soft partnership in 1975. In reality, the 3 failed companies were not failures at all in one very important sense. These 3 companies taught Gates and Allen a lot about business planning and development. They used that information to start Microsoft, Inc. and the rest is history as they say.
One of the strategies for managing a new business venture is the business plan. Because it forces the entrepreneur to identify sales specifics so that investors are comfortable providing equity, loans or other capital. The entrepreneur should also consider a graceful exit should the business not succeed as planned. Though you would not present a business destined to fail to investors, the people you are asking for money also want to know how their investment will be protected as much as possible.
When developing sales projections for the business plans, it’s important to go through each step with due diligence. It begins with a product or service description, followed by a market study. A sales estimate is calculated which drives needed production capacity. The needed production capacity then drives facilities planning and workforce estimates. Finally, the financial analysis is calculated.
One of the issues to be addressed in the business plan is the timing of sales growth. This is where entrepreneurs often get too optimistic. The end result is disappointed investors and a failed first, second or third venture. Sales projections need to be as realistic as possible because inflated numbers don’t do anyone any good. The business plan needs to tell an honest story and that will greatly increase your chances of getting the new business right the first time.
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Angel investors are playing a larger and larger role in the business investment community for obvious reasons. The banks are making it more and more difficult, due to a tightening of credit policies, for an entrepreneur with a new business idea or an early stage business expansion plan to find funding. Yet you can’t keep a good entrepreneur down. Angel investors see a need in the marketplace they can meet while businesses can see a need for investment fulfilled.
It’s a win-win arrangement.
Planting Seeds for Business Success
Finding adequate funding will probably always be one of the greatest challenges a business must meet. On the other hand, investors need a good place to invest their money to increase returns. The tight credit market has created the ideal forum for bringing businesses and private investors together. By investing in companies like yours, angel investors can earn a higher rate of return while your business gets the much needed capital injection required to move forward.
One of the nice features of this type of funding is the fact startup businesses can attract the angel investors when they could not attract venture capital or equity partners due to lack of financial history. The angel investors are known for being willing to give young companies with exciting new ideas, concepts or methods opportunities they would not be able to find elsewhere.
How big is the angel investor market? According to the Center for Venture Research at the University of New Hampshire, in the first two quarters of 2010 (latest numbers reported) angel investors invested $8.5 billion. As many as 25,200 entrepreneurs obtained this type of business funding. Many people are not aware of the size of the private investment market that includes angel investors, venture capital and equity partners.
Harvesting Success
Angels are committed to providing startup funding and even money for small business expansion. Business loans are made in numerous industries too including:
Healthcare
Energy
Industrial production
Green technologies
Retail
Biotech
Software
Computer equipment
Originally angel investors tended to be sole financiers or loose groups of investors willing to make business loans for new business ventures on an informal basis. Today there are formal investing groups able to offer larger amounts of business funding to new enterprises if the entrepreneurs have solid business plans. In fact, the angel investing industry has grown to point where they have their own trade association called the Angel Capital Association.
One of the most common questions asked is: What makes angel investors different from venture capitalists? Though there are no formal definitions, angels are more likely to invest in startup businesses or existing businesses that are still in the early stages of operation. These are the types of businesses that often have difficulty finding traditional loans. Angels will also invest smaller amounts. In fact, the news reports are full of stories of angels making microloans.
Venture capital, on the other hand, usually invests in businesses that have been in operation for a while or have a proven financial track record of some kind. Another difference between angels and venture capitalists is angels invest their own money while venture capitalists usually invest money from formal funds created for investment purposes.
Making Good Sense
If you are searching for startup funding, approaching angel investors makes sense. This is a group of investors more open to funding entrepreneurs ready to get their small businesses up and running.
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The time has come for you to make your pitch to your angel investor. Everything you have invested into your business start-up rides on this moment, and it is up to you to make the best impression possible. While it can be easy to get bogged down in the details of your presentation, you need to consider what is needed to pique the interest of your seed investor and not bore them into submission.
Think about what makes you stand out as a business startup and use your assets to your advantage. Sure, the numbers are important in your pitch, but they should be used judicially. Your private investor is investing in you as much as your business plan, and your performance will set the stage for that all-important funding.
Keep these tips in mind when you are developing the perfect pitch for your angel investor and be sure to keep it light, entertaining, and above all interesting. You only have a few minutes to garner their nod, and you want to make the most of this opportunity.
Be Relatable
Because an angel investor is buying into you as much as the products and services you are looking to market, you need to sell yourself first. Allow them to see inside your world with antidotes that they can relate to. A good story can connect you to your angel investor and allow you to be a reliable source that they wouldn’t mind working with.
Keep It Simple
You may be immersed in the industry and the lingo that it uses, but your seed investor will feel alienated by your use of jargon if they don’t understand. Simplify the message and teach them along the way. Don’t use acronyms and be sure to avoid technical specs if they aren’t necessary.
Incorporate Images
The images that you choose to showcase to your business startup are crucial to helping your private investor see your vision. Most people are visual and need the help of visual aids to get the message across. Keep your images simple and make sure they properly represent your products and services. A typical power point presentation uses 12 slides, nothing more, nothing less.
Invite the Team
You have no doubt selected the best people in the business to work with you. Your angel investor needs to see the whole team to know how valuable they are to your business startup and how they, along with you, can propel the company forward. Invite them to the pitch and introduce them and their strengths.
Show Them How It Works
Let your angel investor see your products up close and personal. Be sure to show them how it works. Provide them customized samples that are geared toward their likes. It’s even better if your product can solve a problem they have right now. They’ll be able to see the merits immediately and invite you into the fold. If it’s a service that you offer, let your angel investor try it out. Make this part of your pitches hands-on and personal as possible, so you stand out.
Tell Them About The Money
Money talks and you need to show your current revenue stream and the impact the new funding will make on your business. If new start up, show the capital disbursements in how the Angel Investors funds will be used. Be ready to provide details on your sales revenue year-to-year as well as all your costs. You should have these numbers memorized, so you look prepared. Also, don’t forget to announce any large orders you have secured that will be coming in the next month or year. The more you can show your private investor that you have the goods to make this work, the more opportunity you have to secure that funding for your business start-up.
Use A Realistic Valuation
When it comes time to provide your valuation, it is key that you are as realistic as possible. A valuation that is too high can show your inexperience while one that is too low can predict your demise. This is the most common error that business startups make, turning off investors before they have even seen the product.
Let Your Passion Shine
You certainly should show your passionate side when it comes to expressing why you need funding from your angel investor. If they see the motivation and excitement you have, they will be more willing to fund you as they know you will give it your all to succeed.
Propose An Exit Strategy
During your pitch, you need to show your investor how they will recoup the funding that they are offering up. Remember they don’t want to be a lifetime partner. They want to earn as much as they can and get out. Propose a payback strategy as well as an estimated timeline. This will allow them to see the ROI of funding your startup business and the potential for their investment.
Don’t Forget The Follow-Up
Once you have privately pitched an investor. You still need to seal the deal and ask for the sale. Follow up with persistence to get your funding as your investor may move quickly to a new startup opportunity. You’ll also have to hammer out the details through negotiations that could be tedious to agree on. Get the process going immediately so your startup business can move forward too.
More detailed information and useful advice can be found at Funded.com. If you need to access our network of angel investors or a business plan for start-up funding visit Funded.com
It’s no secret that angel investors prefer a sure thing when it comes investing in a business startup. But, that doesn’t always mean they won’t take risks when it comes to funding a business that shows great promise. If you your business startup has all the makings of a successful operation, but you keep striking out when it comes to getting the nod from a seed investor you need to consider the reasons they keep saying “no” to you.
Here are four reasons why an angel funder may be hesitant to fund your business startup.
You Need A Business Plan That Works
It is imperative to have a business plan in place when you seek out funding from a private investor. An undetailed business plan can raise eyebrows and have seed investors cooling off to your ideas. Take the time to develop your business plan, marketing plan, and short- and long-term goals for the business before you approach an angel investor for business funding as they will be more receptive to your proposal and help you avoid that resounding “no” for no good reason.
It Needs To Be The Right Time And Place
They say that timing is everything in business. It may be true of your angel investor as well. While you may have a stellar idea, sales coming in already, and a strong business plan to back you up, if your investor isn’t ready to make the leap, the chances of you getting funding may soon walk out the door. Don’t take these rejections personally. Realize that when the time comes, and an angel investor is ready, you’ll reap the rewards of waiting until the time was right.
They Don’t Understand The Market
Some markets require a steep learning curve to understand and recognize who the competition is. Your private investor may not be able to grasp who your target customer is and what your business brings that is new. Finding an investor that sees your vision is imperative as you look to propel your business forward. You want an investor that backs you and without a clear understanding of the market, you may face rejection from an angel investor that wasn’t right, to begin with.
They Are Just Not The Right Investor
Sometimes hearing a “no” from abusiness investor is a blessing in disguise. They may not have complimented your business in the way that you needed them to or they may not have given you the support you needed to soldier on. Finding the right angel partner can help your business to thrive, but waiting for them to come along can be a challenge. With a little patience, you won’t be disappointed.
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Having a lot of money to support potential start-ups is not the only thing an angel investor needs to be successful. While entrepreneurs often think that the only thing an angel investor invests in his or her ventures is the money, the reality is that there are more than just meets the eye.
There is no denying that money is an important element in the job of an angel investor. However, this is not the only one – he or she needs due diligence in selecting a potential business partners.
Diligence is defined as a person’s carefulness and persistence in his or her job or work. It came from the Latin term diligere, which literally means “to value highly” or “take delight in.” But in English, it usually means working hard or doing everything for the job in hopes for a successful career.
This kind of characteristic and personality is important for angel investors. Generally, would-be entrepreneurs simply think of angels as those who have a lot of money which they can use to fund start-ups, the truth is that they are perhaps the most terrifying people for business startups owners. Angels succeed because of their diligence – or more descriptively, being able to train hard eyes to entrepreneurs and make them sweat while doing their pitches or presentations.
More importantly, successful angel investors simply do not stop after scrutinizing the presentations of potential partners. He or she should not stop until the business is actually well established. Angel investors must be able to point out weaknesses on the business plan, as well as put out suggestions for the good of the business.
Unfortunately, not every angel investor has this kind of diligence. There are some who are really good in selecting potential business startups, but fail to assist its owner from achieving success. This situation is not good, both for the entrepreneur and investor themselves.
Some experts said that a number of angel investors simply think that having a lot of money will make a successful business. It is not, as angel investors are expected to help the business owners in transforming their vision and putting everything written in paper into tangent realities.
The truth is that there is no recipe for the “due diligence” needed by angel investors. The idea is very broad, and its execution will have to depend on the situation and relationship between the angel investor and the entrepreneur.
In the end, what angel investors must remember is that money will not be able to buy them success. Diligence does. Having this kind of trait is the secret of successful angel investors, and everyone who invests in business startups with potentials need to have this to ensure a good future.
This is true for business startup owners, who often think that money is everything. It is not. Entrepreneurs must find diligent angel investors who would be able to help them turn their dreams of having a successful business into a reality.
More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit Funded.com
Business plans are intended to be flexible plans for succeeding, not just surviving, as a company. Yet, according to a famous Harvard professor John Kotter, 70 percent of business initiatives intended to bring organizational change will fail. That is a remarkable figure because it means efforts to adapt to a changing marketplace is failing. There is a barrier between the business plan founded on a mission and the real world.
The setbacks are sometimes one of losing sight of the company mission and weakening to plan. The purpose of the mission statement clearly states what your organization seeks to accomplish, It has a philosophy underlying it that does not change. The mission statement is a reflection of the nature of products or services sold, potential for growth, pricing strategy, customer service, and role in the community, competition and others.
The business plan needs to be developed so that each and every segment drives the business towards fulfillment of the mission. A change of proposal is merely a strategy for keeping the business on track to fulfill the mission. Leading change requires first turning to the mission statement and the business plan. A business that needs to change must be able to write a sense of urgency all through the organization because staying true to the mission statement is needed to succeed. If a change idea is needed, it means the business has gotten off course from its mission and its vision.
The business plan goals and strategies may need to be revised, but that should always be a step in the change process. In fact, business plans can serve as the direction for change as each section, from the Executive Summary to the Financial Statements, are reviewed in light of the need for change. Leadership will identify specific strategies for incorporating change and then communicate the revisions on an organization-wide basis. The change process must be empowering and encompassing, meaning employees at all levels should be embraced as change agents.
Business plans begin with a mission statement and then serve as a living breathing document. Leading organizational change is not always easy, but it can be impossible unless there is buy-in to the mission and the business plan. The strategies used to get that buy-in can vary, but staying on message cannot.
More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit Funded.com
