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.