For entrepreneurs who are looking for an angel investor to help them with their capitalization needs, one of the most difficult things to do is to actually meet with an angel investor and present his or her business plan. However, there are a number of things that an entrepreneur should bear in mind with regard to angel investors so that he will not have to worry too much about what will happen during the meeting.
Before the meeting
One of the first things that entrepreneurs should bear in mind is that even before an angel investor agrees to meet with him or her, the angel investor probably already has an idea of who he or she is. This is because of the fact that angel investors make it a point to "screen" who they meet with, and, as much as possible, they want to be introduced to entrepreneurs by a trusted friend or relative so that they would have a "reference." This is because they want to meet with entrepreneurs whom they can have confidence in and trust.
If an angel investor is a family friend or was introduced by a friend or a relative, it would be good to hold a "pre-negotiation meeting" before the big meeting by inviting the investor to gatherings or parties. This is because doing so can allow the entrepreneur and the investor to get to know each other better before the meeting, which can also serve as a good opportunity to make a good first impression.
During the meeting
During the big meeting, an entrepreneur can build on the first impression that he has made by coming to the meeting prepared to effectively present his business concept and to answer any questions that the investor may have. To be able to do so, he or she must prepare a good business plan and bring some very important tools like a calculator, which can help him assess his business needs given the different options he would be presented with during the meeting. In case the investor agrees to invest, it would be a good idea to draw up a letter of intent. However, if the investor is a friend or a close family friend, a simple verbal agreement and a handshake would suffice before the papers are prepared.
To help relieve some of the anxiety that an entrepreneur goes through in looking for an angel investor, there are a number of ways by which he or she can make the meeting with an investor more pleasant. Some of these include holding a "pre-negotiation" meeting and preparing well for the meeting in order to leave a good impression with an investor and increase the chances of signing an investment deal.
