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May 24, 2021

You are going to change the world with your incredible new business idea. You have drawn all the plans in your head, conducted all the market research, and are sure of an industry takeover. The only thing holding you back is funding.

An angel investor is a high net worth individual who provides capital for a startup, usually in exchange for an equity stake in the company. As a result, they have heard millions of “million-dollar pitches”, and gone through thousands of business plans claiming to be the ultimate solution to “man’s problems”.

A seasoned angel investor knows that ideas on their own are not worth much and that the first major step in determining the viability of any business is the quality of its business plan.

Thankfully, the internet has made information very accessible, and with a quick google search, you can get thousands of templates and information regarding how to build a “winning” business plan. However, this begs the question; if this information is so easily accessible, why does research show that less than 1% (0.91%) of startups get funded by angel investors?

While a lot of these online articles and templates are quite helpful, most of them come from sources that have no real-life, practical experience with crafting fund-attracting business plans. This is why it is advised that people recruit trusted professionals who have multiple years of drafting and producing top-level and professional business plans.

If your business plan is to stand any chance at getting funding from angel investors, these are some tips you need to incorporate into your business plan today.

 

Research Industry Giants

Angel investors often look to invest in businesses and markets that they are conversant with. Armed with this knowledge, you should conduct in-depth research on the angel investors in your industry, This can then help you better target them and position your idea in the most favorable light.



Ensure Your Books Are In Order

When drafting a business plan for angel investors, you must note that the number 1 reason why any angel investor is going to fund your business is to make more money. If your business plan does not clearly show how your business plans to make money for the investors, you are setting yourself up for failure.

Your business plan should succinctly indicate your startup’s cash flow. Also, a good business plan should include a clear exit strategy for investors.

This is an area investors evaluate seriously and spend a lot of time brooding over, so be thorough when planning this.


Know Your Market and Market

Knowing your market is essential in securing funding for your burgeoning business. Clearly show your angel investors the “huge” potential market which your startup plans to exploit.

Conduct extensive research on your market, like the size of the market, the market segments, your product’s niche in that market or industry, the growth prospects that are available in that market, new trends and technologies, and any barriers to entry.

 

 

Show Past Successes

One great way to ensure investor attraction is to prove your product can be successful by showing evidence of past achievements. This demonstrates the ability of your business to follow through on its ideas and show them where your business is headed. The majority of investors consider a business with traction because it minimizes the risk involved for them.

Ensure to give details of all revenue streams as well as any potential deals that have been secured so as they can see the bigger potential of your business.

 

In conclusion, the quality of your business plan is the most important factor when drafting an investor-ready business plan. Ensure that it is of the highest quality possible.

If you would rather not experiment with your business plan, which may result in the loss of millions in funding for your business, you can sign up here to get time-tested professional business plans better positioning you to receive funding from angel investors.