The first challenge faced by entrepreneurs is to raise money to transform their dreams into a reality. This can be done by attracting multiple angel investors who trust the entrepreneurs’ ideas and put their money and faith in them. It is difficult, but not impossible. Here are some useful tips for the passionate entrepreneur that would help you while searching for angel investors.
Know the places where investors gather
The process of finding the angels (investors) has become much easier than it used to be. An impressive number of business incubators, investment funds, private investors, many thematic events have appeared. Their format allows start-ups to quickly get the necessary feedback, communicate with experts, and acquire useful contacts and connections. Also, now there are many contests, the winners of which receive financial support from investors.
Do not overdo the documentation
The issue of documentation for many start-ups is very acute. Many are lost when they see impressive lists of documents required by the investment fund. At the first stage, a competent and extensive presentation is sufficient, which should include all information necessary for angels to rely on, as well as a map of expenditures and revenues. Investors are experienced people who are prone to maintain a bookkeeping system and evaluate incoming statements and figures. Optimistic forecasts start-ups. They immediately divide by ten.
What to do if the team does not have experience
But what is essential for the success of the project is the team, especially in the IT field, where the human factor often plays a decisive role. Team members must indeed “burn” with one idea, be prepared for a long series of failures, lack of money, suspense, constant change. Also, it is crucial that the participants evenly “close” the direction of development, promotion, and sales. This will allow the project not just to survive, but also to develop faster.
From the investors’ perspective, a serious plus is the team’s experience of launching similar projects in the past. If it is not – it is better, as in our case, to go with the prototype product.
How to allocate money correctly
The allocation of investment funds in a start-up should take into account the current stage of development. If the product is not yet implemented, almost everything should be invested in the development. As soon as possible (ideally, for a couple of months), run at least a beta version. This will allow you to get a pool of first investors, even if they do not bring big profits first, but they form such a vital user audience and trust in the market’s novelty. After the launch, it is necessary to concentrate efforts on finding the best financial model and redirect the money to advertising and promotion.
Combine perseverance with flexibility
Many start-ups, starting their way in business, do not know what changes this step can bring to their lives. Meanwhile, psychological readiness, maturity is one of the key factors of success. It’s no secret that many projects survived almost exclusively due to their founders’ unshakable faith in their ideas and inexhaustible perseverance on the way to the goals set. So, the first thing to be prepared for is constant changes and instability, including financial ones.
Be able to look at your project from outside
The main mistake is an incorrect evaluation of one’s idea or product. In this matter, objectivity is crucial, since a person who is in love with his idea, at times, is not able to realize that in fact, it is useless, that is, it does not solve the actual problem. Distinguished from a personal relationship to the project is very difficult, but learning to do it is necessary for those who want to achieve real success.Everyone thinks about how to influence the decision of investors. I believe that only facts can help. Investors believe in terms of profits and benefits, firmly stand on the ground, so in the course of negotiations, it is better to operate with actual business indicators. In general, start-ups will always remain an area that is extremely difficult to predict. But perhaps this is their primary interest. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.