An angel investor is an entrepreneur who is passionate about new business but also dedicated to those which they believe will succeed. They won’t just work with anyone. Credit from banks is still under much tighter control than previously so locating and pitching to angel investors may be a financing option you want to consider.
In reality it’s not all like the Dragons’ Den but there are elements you can take from the TV show. You have to be confident, competent and passionate about your business. You need to know it inside out and know where it’s going to go. Below are our top tips for pitching to angel investors.
You need to be able to pitch your business effectively in any circumstances. Whether you have one or one-hundred minutes you need to be able to get across the essence of your brand. Prepare your elevator pitch – a short, comprehensive overview of your business which can be delivered in the time it takes to ride an elevator.
It’s probably the most basic tip of the lot but you need to be prepared. This could be the most important speech of your life as it could result in your business being financed so you can properly get off the ground. It deserves your time, effort and practice to ensure it goes off perfectly.
Set your Stage
Try and get in the meeting room or conference area ahead of time to ensure all your necessary equipment is in place. The last thing you want is the projector to fail or the Wi-Fi not to be connected so make sure you have everything in place so the real thing can be fault free.
Even if you’re pitching a gardening or “messy” business you need to wear your finest business wear. A suit is essential as it is a physical marker of the respect you have towards your potential investor.
Know your Strategy
Your business plan needs to be complete and it must identify a clear strategy for ROI. The plan must include the business’ commercial idea which will provide the return investor’s will expect and how long it may take for them to receive it.
Know your Figures
To go back to the Dragons’ Den analogy, you’ll have heard time and again how important it is to know your figures. In a traditional pitch environment you won’t need to memorise them but you will need a good understanding of what means what and you will need to be sure your projections are measurable. Business owners with no financial acumen are not usually considered a sound investment.
If you don’t know something, be honest. The worst thing you can do is to try and breeze over difficult subjects as the investors will hone in on it and flag it up as a problem area. If you’re not sure then tell them. Be happy to discuss contingency plans, difficulties the business may face and they’ll appreciate your honesty as long as you have a strategy to back up each potential pitfall.
When it comes to pitching to angel investors there’s no real way of knowing. Each has their own system of weighing up investment opportunities. Some are looking for more than a fantastic product whilst others are keen on innovative products regardless of the face behind them. Keeping these tips in mind will help you produce a pitch which any investor would be happy to consider.
Feel free to browse our range of articles related to helping start-up and small businesses. From business ideas to funding and how to market your business there is something to help you at each and every step on the business ladder.
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