When starting a business, finding private investors can be an effective way of raising the money that you need. Angel investors are private investors who have a large amount of investment capital to put into businesses. If you find an angel investor that you could potentially work with, the way that you approach them will have a lot to do with whether or not you are able to get the money you need from them.
Instructions
1. Develop a business plan that you can use to show angel investors. While you most likely have an idea in your mind about what type of business you want to start, developing a business plan should involve coming up with a written document. You need to have facts and figures that deal with your business and your market. Any investors that you approach will want to see that you have financial projections and other information about your business.
2. Set up a meeting with an angel investor so that you can show them your business plan. Do not try to convince someone to invest in your business over the phone. While you could potentially talk a little bit about your business through e-mail or on the phone to get the angel investor to talk to you, your primary objective should be to get a meeting with him.
3. Develop a relationship with the angel investor before asking for money. You should have an initial meeting with the angel investor so that you can get to know him and talk briefly about your business. Meeting with your angel investor enough for them to feel comfortable with you. People invest with others when they feel confident enough to do so.
4. Communicate the information about your business in a clear and concise manner. When talking to your angel investor, you need to be as clear as possible about what it is your business will do. Try to paint a picture for your investor and make them want to invest in you. Tell them what your primary business objective is and try to get them to see things the way you see them.
5. Ask for the amount of money that you need from the angel investor. When you feel like they are open to your suggestion, do not hesitate to ask for the full amount of money that you need. Even if it seems like an astronomical sum to you, the angel investor might have plenty of money to invest. If they like your business idea, they may jump at the chance to invest with you.
