I never know when I might want to ask one of angel investors to help my with financing my future business. Since times are tough, applying for a bank loan might not be an option for me as well as for many other entrepreneurs willing to start their own businesses from scratch.
When I want an angel investor to finance my business, I will need to impress him in some way. One of the best ways to impress a potential investor is to prepare a detailed business plan highlighting all of the important aspects of my future business. Those aspects should include all the bases related to my future business.
I remember once sitting down trying to write my business plan. The whole task did not take me that long to accomplish, but it was a time well spent. To help my future investors understand my business, I included a lot of essential information in my business plan. My business plan included my target market, competitive edge over those with whom I will have to compete, my marketing strategy, my management team, economics, financial position, growth potential, as well as financial projections. As you can see, all the information that I included on the list should be more than enough to convince my future investor to deal with me.
Another thing that is worth remembering is to explain how funds from an angel investor will be spent. It is also good to mention when you anticipate obtaining additional funds from venture capitalists or a public offering in case you are hoping to get money from other sources as well. The key here is to be able to clearly and convincingly describe how you expect to execute your business strategy and achieve the above-average returns that an angel investor of your choice requires. The task might sound complicated, but it does not have to be if you know what you are doing.