Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Business Opportunities to Own
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Everyone will be hearing a lot from the newest addition to our staff: Digital Marketing Manager Hired Margaret Mallonée! This hire was a strategic move to enhance our staff for the new digital media platform we will be introducing in the weeks and months to come. Chicago,...

Slammed last year by what will surely be one of the most expensive and devastating natural disasters to ever hit the Northeast, millions of individuals, many of whom are work-at-home or other small business owners, are only now years later truly beginning to recover from the damage that Hurricane...

Marketing pumps leads and buyers into your business. There are multiple types of marketing methods, from paid advertising to social media. One of the most efficient is called drip marketing.

Here is a quick guide to drip marketing, an effective way to nurture leads using the power of automation. What...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
Hurricane Recovery Resources for Business Opportunity Owners
in the wake of a crisis of this magnitude can be especially maddening, DisasterAssistance.gov is good place to start...
How Many Leads Does It Take To Close A Sale?
This article is now live on our blog and I know could be very insightful for many. Read On
Residual Income Business Opportunities
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
Productivity Hacks — Our Top 50
Productivity Hacks will help you make more from less this 2016. Here at BusinessOpportunity.com we want to... Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
It Takes a Hot Voicemail to Land a Warm Lead
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
Sales Hack To Increase Your ROI and Productivity
Sales Hack to make you more money! Sales Hacks are not new, but how you use them is. We receive lots of emails.. Read On
The Top 10 Reasons to Buy a Business Opportunity or Franchise
Starting your own small business is part of the American Dream, right up there with owning your own home. Read On
7 Keys to Leading Highly Effective Sales Conversations
Most people's sales conversations could be better. Not a little better, significantly better. Read On
 
Resource Center > Article
Seven Rules for Finding an Angel Investor to Fund Your Startup
8 Mar 12 Posted by: Kathleen C Lanza
in Start-Up
Share this Article:

If you’re an entrepreneur with a great idea but you’ve exhausted all your personal resources for startup funding―as well as your friends and family―it might be time to look for an angel investor. Angel investors are wealthy individuals who are willing to invest anywhere from a couple of hundred thousand dollars to as much as $5 million or more in an early-stage business opportunity or startup. They’re a viable option for many, but only under the right circumstances.

When it comes to knowing whether or not angel investing is a possibility and where to find one, the most important rules of the game are fairly straight forward.  Here they are:

Rule #1: Don’t kid yourself. If you believe your new business concept or product is the stuff truly successful companies are made of then you have to not only convey that passion, you’ve got to be able to sell it. And selling it means your facts, figures and projections have to be air tight. Angel investors are in the business of making money, pure and simple. If what you’re selling and how well you’re selling it don’t add up to profits, you’re going to have a very hard time finding yourself an angel.

Rule #2: Angel funding is generous yet finite. Angel investors don’t routinely deal in numbers over $1 million, although it has been known to happen on occasion. In fact, angel investments range from as little as a few thousand dollars to a few million, with the average being around the $300,000-plus mark. So before you make a pitch to find an angel, you better be sure you can get your business off the ground and/or where it needs to be for the kind of money you’re talking about.

Rule #3: Relinquishing some control is part of the deal. Although any equity investor will want you to maintain your majority interest in your own company so that you will stay motivated to succeed, they’ll also expect an ownership piece in return. Angel investors in particular usually set the bar at anywhere from 10% to 35% or even more in some cases.  But hey, even if you keep what might seem like "only 75%" of your own company it sure beats the alternative, which might be nothing without a backer, right?

Rule #4: Angels put their interests where there is interest. You have to be very careful that any angel investor you approach with your idea actually has an interest in your particular industry. Some of them only want to invest in biotech, some in manufacturing and the list goes on. If you don’t do your homework to make sure a particular investor is open to what you’re selling, you’re wasting your time and theirs.

Rule #5: Polish is paramount. If you want an angel investor to give you their hard-earned money, you’ve got to work for it. Expect extreme scrutiny. You must have a business plan that is not only well-written and well-conceived, but concise and very specific. Bottom line, you’ve got to have your act together on every level like you never may have before.

Rule #6: Angels are everywhere. According to the Center for Venture Research at the University of New Hampshire, angel investing made a “significant comeback and (saw) stabilization in 2011.” In fact, the number of angel investors nationwide is now estimated to be well into the thousands, and they can be found hiding in plain sight virtually anywhere. Universities, business incubators, angel investor groups, chambers of commerce, small business development centers, banks, even your accountant, your attorney or the editor of your local business publication…all of these avenues are available to you in identifying a potential angel investor.

Rule #7: An angel’s halo should be about more than just money. Angels are also mentors. They are much more often than not experienced and successful business people in their own right. They won’t just expect to own part of your company in return for their investment, they’ll also want to have a say. That’s why it is imperative that you choose an investor that is a good fit for you and your management style, someone who matches your interests and that you can and are willing to learn from.

According to a recent news release from Growthink, a leading provider of entrepreneurial consulting services, 2012 will be a good year to raise money from angel investors. Even though the following organizations don't do any angel investing themselves per se, they are great resources to get you started in and to help you facilitate your search:

Inc. Magazine’s “How to Find an Angel Investor” Guide

The Angel Capital Association

Go4Funding.com

Related Blog Posts
18 Sep 17 Posted by: Margaret Mallonée
in Start-Up

Entrepreneur Start-Up Tips - How to Keep Your Bottom Line from Going Bust When Starting a Business

Entrepreneur Start-Up Tips - Congratulations—you’ve decided to take the plunge and make your dream a reality by
8 Jun 16 Posted by: Kevin James Culp
in Start-Up

Commercial Property 101: Leasing commercial space can be hugely beneficial for your business and a great way to cut down your overheads.

However, there are lots of things you need to consider before leasing a commercial property to ensure that you’re making the right decision for your business....
28 Mar 16 Posted by: Kevin James Culp
in Start-Up

StartUp Financing: Are you having trouble getting people to buy your expensive products or services? Whether you are offering a business opportunity or a franchise, you are not alone.

StartUp Financing: Even after your target audience is sold on the worth...
29 Dec 15 Posted by: Kevin James Culp
in Start-Up
Funding is the lifeblood of any business. The principle reason entrepreneurs put off starting their own business is lack of it. Raising funds from venture capitalists, friends and family is fraught with danger and is often very time consuming. Funding your business by mortgaging your home is risky too....
14 Dec 15 Posted by: Kevin James Culp
in Start-Up
Who are the types of people who buy a business opportunity or small franchise According to people in the field, this type of career move appeals to a wide range of personalities. If you’re worried that you don’t have what it takes, relax....
 
   

I had the pleasure of setting down with Edwin Shoffner, CEO with Mattress by Appointment for BusinessOpportunity.com's very first Podcast that will be released on our new Digital Platform very soon.  Here is the transcript from that call for...
Read More

Video Spotlight

Virtual Financial A Home Business in Financial Services You are going to want to see this Video!

Virtual Financial Group


Premium Sponsor