Meeting Angels…business investors and discussing possible investing opportunities is always important for entrepreneurs. Especially for a start-up, business Angels can provide a lot more than just the money to carry on. He/she can provide knowledge, expertise and business intelligence.
However, most startup owners though tend to feel a bit “wet behind the ears” when talking to an experienced business Angel, and that of course can ruin a meeting.
What is it that business Angels want to know and see in order to feel that they are on the right path to make more money? Let’s look at a few interesting examples.
1. Be confident but not arrogant!
Business Angels are successful people who like to talk with confident entrepreneurs. However, make sure you can tell the difference between confidence and arrogance. Keep a steady voice and prove you are committed. Signs of arrogance will end your meeting much earlier than expected.
2. Turn weaknesses into advantages
It is most likely that during the discussion the Angel will mention a few weak points on your project. Be prepared to use those points to your benefit and show that you have carefully studied the competition. For example, if they ask you why you do not offer a specific kind of service that your competition does, explain that this service can shift your target market and you do not like that!
3. Know your customer
Provide the business Angel with a specific customer analysis. Don’t make him try to think who the customer is. Actually, he will never do that for you. Adding to this, do not forget to prove that you have done some kind of validation for your project using real customers!
4. Negotiate your actual needs and stick to your plan…don’t try to fool anyone!
When the actual money and stakes negotiation comes in, keep in mind that you can’t fool an angel investor. Be clear with presenting your aims and the ways you will invest the money. Of course you must underline your expectations but again, keep things real, avoid “high hopes” and present a sustainable approach to ROI.
Last, you should always use arguments that can be supported from data or proven knowledge. This is the only way you can be 100% convincing!
