Angel InvestorsWritten by Ryan M. Hoback
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Angels are private investors with high net-worth that are accredited investors and are willing to make high-risk investments. They have had a successful business career; they are often retired business owners or executives who are looking for a "hobby", not just monetary return. Thus, aside from funds, angel investors can sometimes provide valuable management advice and important contacts. However, angel investments bear extremely high risk, and thus require a very high return on investment. Typical angel investments require a return of at least 15-20 times original investment within 5 years, as well as an exit strategy - plans for an IPO or an acquisition. Angel financing is thus one of most expensive sources of funds. However, cheaper sources of capital, such as bank financing, are not available for most early-stage ventures. Angels understand that investor often gets burned, so they tend to favor markets they know. They usually market validation and co-investors in order to feel comfortable. Deal breakers are fairly simple when meeting with investors. You want to make sure that you an up-beat positive attitude. A successful Angel investor would hesitate to invest in someone with a poor attitude or negative mood. You want to make sure that you are not too inflexible, or arrogant. You want to be strong and creative in your pitch, embrace passion you have for your product or service. However, do not create a sense of inflexibility in case investors may be interested but have a slightly different outlook. This is a good thing, this means they see potential and they would like to help make modifications to achieve a higher level of success. Another good point to remember is topic of exaggeration; most seasoned investors can tell when inflated hype is being added to their investment salad. As soon as they smell pepper (an inflated pitch), they will return salad and never order it again, so be realistic in your predictions and assumptions. One of last points that I think is very crucial, is to understand that founders must have some risk at stake in investment. If an angel thinks that founders are trying to cover their own backsides (in case of failure), this will make them extremely reluctant to invest. So make sure you have a small but adequate stake in case of failure that is visible to those who are investing. By now, you should have a good grasp on what an Angel can do for you and your company. There are resources available for contacting Angel investors on web and at http://www.motivatedentrepreneur.com/investor-alley.shtml. You should always approach business incubation specialists who are familiar with Angel investors and can help prepare and guide you through process of meeting, qualifying for and finding funding. These professional have relationships with Angel networks, and they are very knowledgeable in steps that need to be taken in order to receive funding. If you never spread you wings and fly, you’ll never reach sky! © Copyright. Motivated Entrepreneur, Inc. (www.MotivatedEntrepreneur.com)
Ryan Hoback is Founder and President of Motivated Entrepreneur Incubation & Consulting. Mr. Hoback helps entrepreneurs start and grow their businesses.
| | “WOMEN…Wake Up, Smell and Drink Some Coffee…Fourteen ways to succeed through networking”Written by Francine York
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7.Write notes on back of cards you receive so that you can remember who person is and what he/she does etc. 8.At most networking events, attendees are permitted to bring flyers, pamphlets and free samples. Make sure you ask first! 9.Some events allow people to donate a door prize; consider that as another means of “spreading word”. 10.An essential element of networking is to follow up a day or two after event; call, send an email or write a letter to everyone you spoke with and remind them who you are and what you can offer them. 11.Don’t be intimidated by speaking to strangers; everyone is there for same thing…to find clients as well as finding services/products that they can utilize. 12.Part of networking is to join as many organizations and groups as possible; some of these will allow you to come to networking events for free at least at first. 13.Network by placing your card in any “fish bowl” that allows it. 14.Last, but not least, keep drinking that coffee!Remember…you don’t schmooze, ya lose!!"Network continually -- 85 percent of all jobs are filled through contacts and personal references." -– Brian Tracy "It's not who you know. It's how well you maintain your Rolodex(R)." -– Patricia Fripp "Make a list of 200 prestigious, influential, and powerful people with whom you want to work, play, grow and do business." -– Mark Victor Hansen "Networking is simply cultivating of mutually beneficial, give and take, win-win relationships. It works best, however, when emphasizing 'give' part." -– Bob Burg
Francine York is the publisher of Modern Opportunity newspaper and website (http://www.modernopportunity.com). Both offer low cost advertising opps & vital business info,biz opps, products & services. Sign up for the free monthly ezine. Ms. York also hosts a biz opp EXPO. Exhibitors offer info about various opps, services & products. For further info, email her at fran@modernopportunity.com or call (631) 673-3208.
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