Entrepreneurs everywhere want to fly with the angels - angels, it is. But more often,investors group review, dreams are shattered because the employer was not prepared or did not know what to expect when seeking funding from investors. Here's what you need to know to be able to fly with the angels.
No income - Without Investment
Are you just starting your business? If so, you must realize that angels have a very low probability of investing in a business with zero income. They just want quality projects with experienced managers that are liquid, they have a strong management team and a clear exit strategy.investors group review So the first lesson is that angel investors group review want to see a bit of history.investors group review This shows that your product is attractive to real customers who pay real money.
New investors group review do not pay old investors
So to investors group review get your business started very likely end up putting their own money into the company or ask for help from family and friends.investors group review Most entrepreneurs then fall into the trap of thinking that an angel will come with the funding that will allow the company to repay the loan family and friends, as well as the employer's money himself invested.
It is best to learn today that angel investors group review do not want to make other investors. They want to see 100% of your investment invested in the business to make it grow. So the lesson here is to focus on your company's growth strategy, and that usually means reinvest all earnings and cash flow of the company in business. But it's really one of the keys to growth - reinvest profits in the company.
Angels take their time
The next thing to run out of money entrepreneurs need to understand is that there is a process of time involved in funding from angel investors. If your business plan, it is in the hands of a group of angel investors group review usually go to a selection committee first,investors group review only the best business plans that meet the angel group criteria will have the opportunity be presented to the group. The selection committee may take 30 to 60 days to review your business plan and approve investment group to really look at.
The real estate investment group may meet once a quarter, so that the employer can watch another period of 60 to 90 days before they (investors group review) have the opportunity to present their business plan. So if you are looking investors group review for funds to cover payroll next week, this is not the place to be looking.
Keep it short and sweet
When the employer finally makes its opportunity to present his story, he will not be given all the time in the world. If you are lucky,investors group review you will get a 20-minute period for your presentation. You should plan in the last first 10 minutes of your presentation being real and being 10 minutes for questions and answers.
Spend your first 8 minutes focusing on your product and about 2 minutes from the investment itself. Limit PowerPoint presentations to no more than 10 slides.investors group review , Here, you should have only two slides and 8 dedicated products dedicated to investment. Be confident, but true. These investment groups were it that too many times and have developed exceptional skills intuition - so do not even think to bluff your way through investors group review .
Due Diligence is a slow process
If you are lucky enough to receive a favorable decision at this level, the angel group will then begin your due diligence.
The due diligence process will vary for different types of businesses, but be prepared to be carefully investors group review to examine all areas of your business, including financial, legal, labor, tax, information technology, environmental and market / business conditions for your business. They also seek to cover intellectual property, movable and immovable property, insurance and liability, revision of debt instruments, employee benefits and labor issues, immigration and international transactions .
You must plan within 3-12 months to process.
So if you added it all, you're looking at a minimum of six " investors group review " months and as long as 18 months. Not exactly in cash in an instant.
The funding comes in stages
If you've survived this far, you'll be more than ready to cash this check. Now comes another embodiment - financing can come in stages, not all at once. investors group review are usually groups of wealthy individuals who come together to make the investment. This risk is spread.
This also means that the investors group review will collect the group's funds and the money is not sitting in their current waiting to be disbursed to you accounts. There can be a maximum of 10 or 15 people who take an average of $ 30,000 each to fund the angel investment group. So expect funding to come in stages, not all at once.
Note else - 10 to 15 people each set between $ 30,000 add to $ 300,000 and $ 450,000. Thus, the last lesson for today is that his $ 1,000,000 salary does not come from angel investors group review . Is the sod

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