Business Angel: tricks to get your financing – Business Loans
Although in Spain they are still not as popular as in other countries, the number of business angel has experienced strong growth in recent years. As a result, more and more companies and entrepreneurs who need to finance their project, and who have difficulty getting a loan, turn to them.
Business angels finance startups and emerging businesses, usually in exchange for a share in their capital. The management knowledge of these investors and their network of contacts can make the difference between the success and failure of a company. In return, they expect a high return on their investment.
TIPS TO ACHIEVE THE FINANCING OF A BUSINESS ANGEL
If you have a business project in your head and want to get financing from these private investors, we suggest some tips:
Decide which is the best business angel for your business
The business angel that finances your business will play a very prominent role in its growth, so it is vital that before requesting its support, try to have all the information about it. Keep in mind that if you don’t get enough involved, you won’t achieve the results you want .
Show it a detailed budget
You have to be very clear how much money you will need, that is, what will be the destination of each euro you receive from your investors. With a well-developed financial plan you will find it much easier to gain the trust of the people who are going to finance your business.
Sell your idea well
You can have a very good business idea but if you are not able to sell it correctly it will not help you . To get business angel financing you have to make it very clear what are the benefits of your project.
To start, you need a good market study with which to prove that your idea is profitable. You will also need a business plan that collects your company’s objectives and your strategy to achieve them. And don’t forget to justify your business expectations, which must be realistic and objective.
Surround yourself with only the best
If you don’t go alone in your project, you should surround yourself with a good team. They must be committed people, like you, and willing to do everything to get the business going . Investors will want to perceive a high level of commitment from all the people involved in the project. If they think you’re only going to “try” to make money, they won’t put a single euro on the table.
Introduce some customers.
The best way to show that a project is viable is to show off customers. If there are already some people interested in buying what you sell, it sure is because it is worth it. Your current clients, however few, are your best cover letter to any investor.
Offer guarantees if things go wrong.
If you offer your business angel an exit door to abandon the project if time proves that it is not viable, you will more easily gain their trust. This possibility may be an additional guarantee for him, who would appreciate an agreed exit in the event that things do not go as they should.
Keep in mind that the risk of the investment going bad is quite high , so these investors will only finance those projects that they are completely sure about their profitability.
If you need an extra help, at Derrick Polick we can offer you an online loan of up to 2,500 euros (800 if it is the first time you request it) to be repaid flexibly and in convenient terms. It is very simple and will only take ten minutes. There is hardly any paperwork!