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Angel investors only work with companies that show promise and are already successful



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Angel investors only work with companies that show promise and are already successful

An angel investor wants to know their investment is worth it, so they don't take many chances on startups unless they are already showing promise.  Showing promise early on could be anything from getting interviewed on big blogs or websites to showing up on the authority news and tech websites or shows.  If you're starting off, and none of this is happening, you probably won't land an investment anytime soon.  You'll need to focus on building your business towards success before an angel investor will even think about opening up their checkbook and signing over a nice amount of money to boost your company.

If you are showing a bit of success, investors will start to seek you out.  Success to you might mean you're making $5,000+ a month, but to an investor that's pocket change.  You will need to hit 20k, 30k, or even 100k a month before a big time investor will want to begin working with you.  I know that's a lot of money, but you need to be a guaranteed profit machine before angels will swoop down and throw money at you Angel investors only work with companies that show promise and are already successful

In this discussion I'll be covering some things you'll need to do before you find the right investor for you.  Remember, you'll want the investor to come to you, but getting on the radar of the right investors will always be a good thing later on when you're seeking out their partnerships.  Below are a few things you should work on in order to land that large investment you see companies in movies obtaining!


Build up your own success and don't worry about investors
The first thing you'll need to do to catch the attention of an investor is to ignore them completely.  It sounds a bit backwards, but you'll need to ignore them and focus on building your company from the ground up and become successful on your own.  Investors will eventually come to you, if you've become big enough, and they will want to work with you if your business plan is in tip top shape.

Some investors want to see you making $10,000 a month while others want to see you making $100,000 a month before they will decide to talk with you.  To peak their interest, you will need to say something along the lines of "Supporting 15,000+ happy customers and counting!" which will automatically peak their interest.  The thing that will get them to contact you is your pricing page.  If you're selling a service or product for $97, they will easily be able to figure out you've already grossed around 1.5 million dollars, and they will likely contact you.  They know you're already successful, and they can help you boost your success by partnering up with you Angel investors only work with companies that show promise and are already successful


Get on an investors radar, but don't annoy them
Investors are all over the world and get a ton of emails each day, so you'll need to stand out among the masses within their inbox, just like how you stand out within your niche.  If you come across their website and see "support@TheInvestorsDomain.com" you don't always want to send your email there.  Instead, you will want to go on LinkedIn and figure out who runs the investment firm you're trying to contact, then email them directly either on LinkedIn or to their personal email within their firm.

Getting past the gatekeepers, the people who monitor the support emails, will be the first obstacle you need to leap over if you want to get on anyone's radar.  Think about it, how many times have you called a company and talked with someone at the front desk?  Well, a support email is like talking to an assistant to the person who makes the decisions and nothing will ever happen unless you get past that gatekeeper lol.

Get on their radar, but don't annoy them to a point where the literally tell you to stop contacting them.  One or two emails to get them to respond is enough, sending them one a week to stay on their mind is more than you need to be doing.  Figure out their requirements for investments and only contact them back when you hit the minimum Angel investors only work with companies that show promise and are already successful


Figure out what investors have a portfolio of investments within your industry
There are a lot of investors out there, which I mentioned above, and they all have specific industries they will invest in.  If you're in the web design and marketing niche, like myself, you won't peak the interest of an investor who only puts money into the medical field.  Figuring out what investors would likely put money into your company actually isn't that difficult.  You can find plenty of databases out there that have listings of all the major investors, as well as the little ones, and what they frequently invest in.  List all the ones that like to invest within your industry and contact them to figure out what you need to do in order to get an investment.  You don't want to out right ask them for money, you just want to ask them what you need to do in order to obtain an investment, and you will already peak their interest because you sound like a professional Angel investors only work with companies that show promise and are already successful

Investors want to put money into businesses that they know more about and not something they will likely be taking a chance on that they have no clue what is going on.  This is why a medical investor won't branch out to different industries too often, they want to know what they're investing in.


Know how much of an investment you need and what you're going to use it for
If you don't know how much money it will take to push your business, you won't get many investors interested in you.  Sure, a lot of investors could be interested in you, but they will instantly get turned off if you don't know what you're going to do with their money.  Think about it, if I told you I need $10, you'd likely ask me why I needed it.  If I told you "I just need it" you likely would tell me to go away lol. 

An investor wants to know you have a business plan in action, and that means you know what you're doing with your money when it comes in.  An investor will be there to boost your success much quicker than you could do on your own, basically leap frogging you through your business plan and gaining even more success in a much shorter amount of time.  This is why you'll need to know what you're going to spend their money on before they want to hand it over.


Make sure the investor knows you're not using their investment as your own salary
If you've every watched the show Shark Tank, you likely have seen them ask if their investment is going to be used to pay the owners salary.  If the business owner says anything remotely close to "Yes" the sharks will drop out and wish them luck on their venture.  An investor wants to know you're going to keep working hard, after you get the investment, and boost your sales exponentially due to the investor giving you money. 

An investor gets turned off when they know you're going to use their investment for your own salary because it just shows you're not going to work as hard for your money.  They want you to pay yourself the bare minimum and reinvest everything you make so you can be even more successful in a shorter amount of time.  Remember, investors need to make money from your company in order to recoup what they gave you, so you need to show that you're dedicated to making millions and not slow down even if you're comfortable with your profits.



In Conclusion
Getting on the radar of an investor isn't always the easiest thing to do, but it can be done once you start to make some money on your own.  To really peak the interest of an investor you need to figure out their bare minimum requirements before they will invest, then contact them when you hit that minimum.  Finding the right investor is better than talking to thousands of them, because only a few will likely be the right fit.  You want to work with investors that like your industry, because that's likely the only type of businesses they'll throw money at.  If an investor knows you're not going to use their money to pay yourself, you're going to be seen as a good investment as long as you're already successful.



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Thanks!

Razzy

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Martinsx1

Any good investor looks for stability in anything he or she is going to invest in. No one likes to lose money by investing in something that would not be profitable.

This is why they look for establishment that have record and good business history with lots of testimonies before jumping into business with them.




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Baburra

This is true. I myself am not rich enough to be an investor but if I were to work with one, I would not trust someone who would believe me when I show him or her an idea that doesn't have proof to back it up. For the most part, self made rich people will know to always look for results first before jumping in because even with that the risk will still be high so without it the risk will just be out of this world.




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augusta

Well stated, most investors wouldn't undermine any start-up business but what they want to see is a stint of success, show that your business is promising and in no time would be a hit.Angel investors are always scanning and scouting for where to invest, they would always contact owners of the promising business to partner with them but before then A business should do his or her bits to get noticed by being outstanding and exalting to be lifted by great investors.




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Corzhens

A business can be promising if the proponent had studied the nuances of the project and has a complete list of information to work on it. My husband had made a position paper for a movie project that he would submit to a site for crowdfunding in the hope of finding angel investors. But one prospect said that the project is so good and it can get a funding from a government grant. True to expectation, the project was submitted to a government agency which gave the funding and the movie was produced and completed.




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Barida

My friend will always tell me that when it comes to business, I should allow my success speak for me in the sense that it is how I succeed that will make others see the need to believe in me. So, I am of the opinion that angel investors wait to see how better the business is going before making any investment on it.




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kgord

I think of the show Shark Tank the investors or venture capitialists are very selective about what they choose to invest in. They need to have a clear path to seeing what the money is going to be used for before they pony up the funds.




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Judas2018

In the case of people who operate within my particular online space, the word investor is sort of a dirty word. While some would welcome a flow of equity or capital into their digital endeavor - it also comes with sometimes invisible strings attached. Once someone invests in your site you are beholden to them. Which means any changes to the format or design they suggest, could become demands. If you don't comply, your new funding could be immediately pulled.




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vinaya

I created a lingerie website in order to flip it and make quick money. My website gets traffic and is also earning revenue. I tried to see it through flippa, however, no one seems interested in buying this website. I spent $29 for flippa auction, and it did not work. Now, I have decided to work on this website and bring more revenue. If I can earn revenue from this website, why should I sell it. Currently, I do not have money to invest and I am thinking about investors so that they can help me procure products and start selling. The tips shared here will surely help me. Thanks




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overcast

I think a lot of angel investors are going to invest into business if they find it good enough. I have seen some of the business that may have potential. But those business don't have contacts and that means it requires a lot of efforts to get things right. I'd say some companies are successful based on their efforts. Some are based on their networking contract.So angel investors are careful with their money this way.




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Judas2018

I think if you're looking for a real 'angel investor', it should be someone in your area of expertise. Someone just as passionate about what you do as you are. That way, there can at least be some sort of agreement that works for both parties. You don't want a boss or a corporate raider who has eyes on taking over your business with all kinds of crazy ideas for your brand that you'll end up hating. You want a partner.




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Everett

You always want someone that is generally in the same field as the company. I would definitey stick to my niche if I was to ever hunt down an investor, because it's much more success to get the investor because they already know the ins and outs of the field.




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overcast

True. Someone who knows what we are doing. That is surely going to add up in the business. And if we do it the right way. Then yes things can be great in that case. I personally have found out that companies which are already successful are not easy to go for the people who are starting new.




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Everett

Investors are always careful with their money. They will invest into companies that they believe will not fail (during the time of their investment), have a steady client/customer base, and actually provides some growth to communities or lifestyle. A lot of investors want to invest a low amount, with the hopes of getting that back plus more profit (and sometimes even a stake in the company 5-30% mostly).




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overcast

Yes that seems to be the case. The reason being a lot of fake companies. And really bad ideas are coming out in the name of startup. So the time and the market tested products are going to be making money. So that is something we have to check out.




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Everett

Make sure the investor knows you're not using their investment as your own salary
This is by far one of the worst mistakes anyone can do if they have an investor. You do not use the money that was given to the company to pay for any employee's salary (UNLESS you needed that employee for a specific project to help boost the quality, and exposure of the company). I think if any company is paying a salary with investor money then that company is really not yet a company and just an idea that may be making some sales. You do not want to give someone money, expect the money you've given PLUS profit and then have that money pay for an employee's salary. That will never grow the company. Do not do this, it's foolish!




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Judas2018

Investor money basically is supposed to be used to fund new ideas for the brand. Ideas that will in the long run, maximize its profits. Thus creating a happy investor or investor group.




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Baburra

I agree. I think many people suffer from the delusion of having a good idea and thinking that it is enough to gain investors. I myself have had that mindset in the past so I would not count myself as being any better than the average person in this case. I learned as I grew older that investors want proof and not just ideas or potential, so nowadays when I am trying to convince others that my idea is good, I make sure that I make the experiment myself and get the results and proof first so others won't have to trust me on words alone.




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cmoneyspinner

There was one time when I actually joined a community site that tried to MATCH angel investors to parties with business ideas and a plan. In fact, years ago I created a profile explaining my business intentions, and I would get notifications that certain investors were interested in talking to me in order to fund my endeavors. There were personal and family matters at the time that prohibited me from following up. I don't know if the site exists anymore. But it was a good idea.




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Corzhens

I believe that getting an investor’s attention is one of the hardest in marketing. It is almost the same as getting a film producer to notice your project proposal. Based on the experience of my friends in the movie industry, it is better to hone your skills and master your craft than focusing much on investors. In other words, try be successful by yourself and the investors will come later.




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