5 Details Angel Investors Look For In A Business Plan

As a business startup, you have no doubt developed a business plan that outlines your need for funding to get your company off the ground. While you may have a clear purpose and objective, angel investors are looking for specific details that let them know that your business start-up has what it takes to make it in the marketplace.

With a seed investor seeing hundreds of business plan proposals each year, you need to make sure yours hits the high notes and resonates with them. This means that you have to hone in on what is important to them and help them see why they need to put their funding dollars into your business. Use these tips to enhance your business plan and garner the attention of an angel investor for your business start-up.

Industry Experience

Angel investors are savvy when it comes to industry experience, and they want to see that you have what it takes to make it in the marketplace. They want entrepreneurs that have intimate knowledge of the industry they are looking to break into and have even worked in a similar business for a time or two. This can help your business plan sing as you are able to relate your experience to what your business should and shouldn’t do to succeed.

Market Need

Using your business plan to show that there is a definite market need for your product or service can help your angel investor see the potential of your business start-up. They will easily understand the consumer problem you are looking to solve and see how your offerings fit the bill. Be detailed in your references and be sure to show how the market will respond to the availability of your product or service.

Competitor Knowledge

Knowing your competitors is key to understanding where you will stand out and separate yourself from the pack. Remember that your private investor may not be as fluent in your competitors as you are and you need to break it down in your business plan for them to grasp as fully as you. This can prove to be beneficial in gaining the funding your need to grow your business.

Business Traction

Showing what your business startup has done so far to generate revenues is a boon for potential angel investors to see. This lets them know you are on the right track and that your company has traction. Be sure to detail all your revenue streams as well as any upcoming deals you have secured to ensure they see the big picture of your business’ potential.

 

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

4 Ways to Impress an Angel Investor with Your Business Startup?

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 angle 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.

 

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

4 Reasons Why Your Angel Investor Says, “NO” To Your Business Startup

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.

It is imperative to have a business pl

You Need A Business Plan That Works

an 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 a business 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.

 

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

Secret to Finding Angels Investors: Great Business Plan

One of the most daunting tasks for business startup owners is finding an angel investor who would be willing to finance the bulk of the company’s expenses. And while there are a lot of possible investors out there, the number of people competing for these opportunities is also huge.

In fact, some information regarding investments showed that less than 10 percent of business startups in the United States get the nod of the most sought after angel investors in the land. This figure, however, should not discourage business owners who are competing for some financial support from investors. After all, one in every ten applicants gets the nod of an angel investor.

The question, therefore, is how will business owners ensure that they will be the one who will get the coveted nod of an angel investor? The answer is simple – a good business plan!

While angel investors take into consideration a number of things, one of the most important criteria that they look at is the business plan. Thus, having a well-polished plan is something that business startups need to have, especially if they want to secure the support of an angel investor.

There are a number ways to come up with an investor-ready business plan. But one of the first things that the entrepreneur must look at is the actual idea for the business.

Ideas should not be the one-paragraph description of what the entrepreneur wants the business to be. Rather, it should be as detailed as possible so that it covers items such as the target market, marketing strategy, capital allocation, and return of investment for possible business partners.

Having a detailed business idea is a good start into coming up with a business plan. This will assure possible investors that you are serious about the business and are not just toying around with the idea.

Ideas are one thing, but a detailed understanding of the things that would have to be done to make the idea a real thing is another. Angel investors prefer the latter.

Once, would-be business owners have a detailed idea regarding the comings and goings of the proposed business, then this is the good to time come up with a good business plan.

Business plans are actual documents that detail a number of things that angel investors want to see. In addition to the description of the proposed business, the plan should also include a step-by-step process on how the objectives and vision of the company will achieve.

It is necessary for the business plan to be detailed, but not long enough to bore the angel investors to death. Moreover, it should be written in a way that the investors will understand its contents.

Having a good business plan is a good way to attract angel investors. Therefore, business owners must thrive to come up with something that will entice possible partners to enter into an agreement with the company.

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

Think of Funding When Writing Business Plans

One of the mistakes made during the writing of business plans is treating business funding as if it is a completely separate section with no real relevance to the rest of the plan. In other words, you write your executive summary, business description, market strategies and analyze the competition in a funding vacuum. Then the financial section gets tacked on, and it basically states you need money and here’s how much money you need.

But investors read business plans closely, and they are looking for a particular type of company that fits their requirements.  The words you choose to describe your business and the presentation counts. For example, if you are looking for a business loans from traditional lenders, they are not going to be impressed with hype in the least. You may have the most “stunning” invention ever created that will change the way mankind lives once your product hits the market, but a bank is going to see that kind of claim as marketing hype.

Professional From Beginning to End

Business plans are unique products. They must be interesting, professional and well written while being interesting, entertaining and exciting. That’s not easy to accomplish which is why so many entrepreneurs decide to get professional help writing their plans. Yet one of the most important features that a business plan should have, yet is often overlooked, is funder appeal.

In other words, the funders you plan on appealing to need to be attracted to what you say in your business plan from the beginning all the way to the financing plan.  It’s easy to get carried away while writing because you’re excited about your business and finding startup funding. This can lead to the use of a lot of superlatives that make your business plan look like a lot of hype without substance.

Polish the Product

As a entrepreneur you are not a huckster, so the business plan should not make you look like the equivalent of a snake oil salesman. The business plan that makes a lot of wild promises is not going to attract equity partners. Unsubstantiated claims will not get you approval for business loans. Statements that portray you as a gambler will turn angel investors away.

Business plans should be polished products that are consistently honest and give the right impression throughout the entire document. You can’t write a plan that is sassy and reckless and then expect venture capital funding to be approved because you decide to get serious in the section on financing.

Payment and Plan in Full

Polishing business plans also means making sure the plan is complete. You are in a hurry to get your plan done and to find financing, but a condensed plan won’t get you anything except rejected and especially when looking for startup funding.  Business plans prepared for venture capital firms or equity partners need to contain all of the important information about your business.  The same thing is true for angel investors. If your plan is missing essential information including marketing plan details or financial projections or only summarizes an operational plan, then the assumption will be you have not bothered to work through these details.

The original business plans that entrepreneurs use to find business funding need to be comprehensive plans that are consistent and always keep potential investors in mind. It never pays to skip the details.

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 Plan Starts with a Mission to Succeed

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

How Do You Know Your Business Idea is Good?

Investors want to fund good business ideas. That’s a broad statement because what seems like a good idea to me may be different from what seems like a good idea to you. So many ideas never seem to go anywhere. Some are just so uninspiring that they can’t seem to get the attention of anyone, much less investors. You can even write a whole business plan around a bad idea, leading to great disappointment when investors spot the fact it’s bad.

A good business idea is much more than just an idea. You can sit there all day and come up with ideas, but that doesn’t make them good. Good business ideas have certain qualities that differentiate them from other ideas. For one thing, a good business idea fulfills an unmet customer need, and it is often a need the consumer doesn’t even recognize yet. That may sound odd, but great ideas are often not great until someone invents a product or service.

Determining if a business idea is a good one requires more than just knowing the market will appreciate products or services. The idea must be feasible and realistic in terms of production costs, the time from funding to sales, profitability and safety. A good business idea is also one that can be brought to fruition because the entrepreneurs have the knowledge and skills needed.

There are more qualities associated with good business ideas, but one of the most important is related to innovation. Good business ideas offer a new twist on products or represent creative and innovative new products. The new twist or innovation should represent something that matters to people which means it brings some kind of satisfaction.

There are no hard and fast rules or magic formula to define a good business idea. Instead, investors will consider all of the qualities of the idea coupled with the marketing, competitive and financial factors.

  • 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

Five People You Should Meet Before You Start A Business

As a budding business owner who is about to venture into the entrepreneurship journey, one of the best things you can do to set yourself on the right path is meeting people. Of course, it is possible to start out all on your own but it is difficult to really go to far without having help from one person or another. The kind of people you meet and how they influence you will have a huge impact on your business and how successful it turns out.  The different types of people you will meet will help your business in so many different ways such as forming of partnerships, people who are connected to major resources you might need in your business, people with more experience than you do, and people with different connections and networks.

  1. Someone who is experienced in what you are doing

This category of people can be called the mentor. A person that has done similar to what you are doing. Such a person will have the necessary skill and required wisdom and experience,that you may not have yet and can successfully help you out with tips and advices that will help you solve some problems easily. In addition,this person may have a network of contacts that you can add to your own network pool.

  1. Mentor

For your business to be successful and gain ground in any area, you have to get in touch person who is well known and respected in the community. It may not necessarily be someone that is in the same field of expertise. It can someone you admire or has positive input and encouragement. You get the added benefits of having this mentor could give you a major boost and provide insight from being outside the box.

  1. Peers

These are the people in the same niche that you are in and within the same area. Although they might not be as much influence as the first two, but there is a very high chance that you can make use of their network of contact and they can make use of yours. You can share resources with them too since you will most likely face the same kind of problems.

  1. Local talent

You will need some skill-set that you may not have. There is a good chance that you may find someone or people who can assist you in one skilled area or the other within the vicinity of your business and may be willing to help or give you free advise.

  1. Business Plan Writer

Your business will surely need some capital for you to start with and no matter how frugal your start-up capital might be. Having an experienced business plan writer write your business plan has experience formatting your business plan in a way a bank or investor would expect to see. Having a business plan is a road map of what you expect and a guide for your business.

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

 

 

Importance of a Business Plan

Before a business is able to commence on its operations, it is important to have some specific details about the business mapped out. This actually varies from size to size as it can be just a few sentences or even take over a hundred pages containing different formal sections, title page and table of content. Basically, a typical business plan has an average page range of 15 – 20 pages and if comprehensive, it should consist of three sections – The business concept, the marketplace and the Financials section. These sections are the further broken down into seven more components which are the business overview or summary of the plan, the business description, market strategies, competition analysis, design and development, operations and management, and financial information. However, it does not matter how long or lengthy a business plan is, what matters is, the level of importance that should be attached to a business plan should be high. In this articles we will be looking at the importance of a business plan

  1. A business plan makes direction of the business clearer

The main purpose of writing a business plan is to have a clear view of the business and what the business’ goals are over a period of time. Being able to have a clear view of the direction in which a business is headed helps understand what needs to be done to achieve progress for the business. Making business direction clearer may include things like business description and its services or details of the ideal target customers of the business.

  1. Planning for the future

Time is a key factor in the development and growth of a business and a business plan can effectively take time into factor to make forecasts on possible market changes, market trends and new innovations or directions to go through as the business progresses. Having a clear direction helps a business know how and where to start from but future planning helps to have an idea of what the business’ goals should be.

  1. Funding or financing purposes

A business plan, a comprehensive one, helps determine the viability of a business in terms of profit. By putting statistics, figures, detailed plans and facts in writing, it will be easier to convince an investor to fund the business.

  1. Attract people to join the business

A business plan is all a business owner needs to bring in partners, executive level employees or even secure supplier accounts. With a business plan, anybody who might be interested in the business can get the needed conviction and see the potential of the business and consequently become a part of it.

  1. Effectively manage the business

With a business plan, the organization is well structured and each management position gets their role mapped out. A business plan also makes it possible to monitor the progress of the business and check if the business is well on its course to meeting up with targets, operational milestones and goals.

The importance of a business plan is not limited to these specific points. A Business plan can also help you achieve other goals such as establishing  new avenues of product development, securing suppliers and defining alternative marketing strategies to engage customers. It is an important tool for every business owners and should not be taken for granted.   

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

 

Think of Funding When Writing Business Plans

One of the mistakes made during the writing of business plans is treating business funding as if it is a completely separate section with no real relevance to the rest of the plan. In other words, you write your executive summary, business description, market strategies and analyze the competition in a funding vacuum. Then the financial section gets tacked on, and it basically states you need money and here’s how much money you need.

But investors read business plans closely, and they are looking for a particular type of company that fits their requirements.  The words you choose to describe your business and the presentation counts. For example, if you are looking for a business loans from traditional lenders, they are not going to be impressed with hype in the least. You may have the most “stunning” invention ever created that will change the way mankind lives once your product hits the market, but a bank is going to see that kind of claim as marketing hype.

Professional From Beginning to End

Business plans are unique products. They must be interesting, professional and well written while being interesting, entertaining and exciting. That’s not easy to accomplish which is why so many entrepreneurs decide to get professional help writing their plans. Yet one of the most important features that a business plan should have, yet is often overlooked, is funder appeal.

In other words, the funders you plan on appealing to need to be attracted to what you say in your business plan from the beginning all the way to the financing plan.  It’s easy to get carried away while writing because you’re excited about your business and finding startup funding. This can lead to the use of a lot of superlatives that make your business plan look like a lot of hype without substance.

Polish the Product

As a entrepreneur you are not a huckster, so the business plan should not make you look like the equivalent of a snake oil salesman. The business plan that makes a lot of wild promises is not going to attract equity partners. Unsubstantiated claims will not get you approval for business loans. Statements that portray you as a gambler will turn angel investors away.

Business plans should be polished products that are consistently honest and give the right impression throughout the entire document. You can’t write a plan that is sassy and reckless and then expect venture capital funding to be approved because you decide to get serious in the section on financing.

Payment and Plan in Full

Polishing business plans also means making sure the plan is complete. You are in a hurry to get your plan done and to find financing, but a condensed plan won’t get you anything except rejected and especially when looking for startup funding.  Business plans prepared for venture capital firms or equity partners need to contain all of the important information about your business.  The same thing is true for angel investors. If your plan is missing essential information including marketing plan details or financial projections or only summarizes an operational plan, then the assumption will be you have not bothered to work through these details.

The original business plans that entrepreneurs use to find business funding need to be comprehensive plans that are consistent and always keep potential investors in mind. It never pays to skip the details.

More detailed information and useful advice can be found at Funded.com. , it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions.  If you need to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check out Funded.com