If you want to encourage investors to put money into your business, understanding the mindset of an angel investor can be invaluable. Investors can help take a business forward by leaps an bounds and knowing what they are looking for will help you get your venture the capital it needs
Common mistakes and how they can be
Rectified or Avoided
Generally speaking, angel investors prefer to be involved to at least some extent in the businesses in which they have invested. So the trend is for angel investors to get into start up ventures or small businesses, where their skills and experience in business will be useful in taking such an enterprise ahead
Look for those who are successful, experienced, and who are willing to wait till your venture is ready to offer returns. You also need ensure that your investors have easy access to the capital they are offering. You shouldn’t have to pester your investor for money – it is both time-consuming and counter-productive. Remember not to agree to accept a smaller amount of money than what is actually required, and ensure that communication channels between you and the investor are always clear
Remember not to neglect areas such as banking, vendors, the community your enterprise belongs to, and corporate social responsibility. All these will have an effect on your potential investor’s decision.