Angel investors only work with companies that show promise and are already successful

Angel investors only work with companies that show promise and are already successful

An angel investor wants to know their investment is worth it, so they don't take many chances on startups unless they are already showing promise.  Showing promise early on could be anything from getting interviewed on big blogs or websites to showing up on the authority news and tech websites or shows.  If you're starting off, and none of this is happening, you probably won't land an investment anytime soon.  You'll need to focus on building your business towards success before an angel investor will even think about opening up their checkbook and signing over a nice amount of money to boost your company.

If you are showing a bit of success, investors will start to seek you out.  Success to you might mean you're making $5,000+ a month, but to an investor that's pocket change.  You will need to hit 20k, 30k, or even 100k a month before a big time investor will want to begin working with you.  I know that's a lot of money, but you need to be a guaranteed profit machine before angels will swoop down and throw money at you

In this discussion I'll be covering some things you'll need to do before you find the right investor for you.  Remember, you'll want the investor to come to you, but getting on the radar of the right investors will always be a good thing later on when you're seeking out their partnerships.  Below are a few things you should work on in order to land that large investment you see companies in movies obtaining!


Build up your own success and don't worry about investors
The first thing you'll need to do to catch the attention of an investor is to ignore them completely.  It sounds a bit backwards, but you'll need to ignore them and focus on building your company from the ground up and become successful on your own.  Investors will eventually come to you, if you've become big enough, and they will want to work with you if your business plan is in tip top shape.

Some investors want to see you making $10,000 a month while others want to see you making $100,000 a month before they will decide to talk with you.  To peak their interest, you will need to say something along the lines of "Supporting 15,000+ happy customers and counting!" which will automatically peak their interest.  The thing that will get them to contact you is your pricing page.  If you're selling a service or product for $97, they will easily be able to figure out you've already grossed around 1.5 million dollars, and they will likely contact you.  They know you're already successful, and they can help you boost your success by partnering up with you


Get on an investors radar, but don't annoy them
Investors are all over the world and get a ton of emails each day, so you'll need to stand out among the masses within their inbox, just like how you stand out within your niche.  If you come across their website and see "[email protected]" you don't always want to send your email there.  Instead, you will want to go on LinkedIn and figure out who runs the investment firm you're trying to contact, then email them directly either on LinkedIn or to their personal email within their firm.

Getting past the gatekeepers, the people who monitor the support emails, will be the first obstacle you need to leap over if you want to get on anyone's radar.  Think about it, how many times have you called a company and talked with someone at the front desk?  Well, a support email is like talking to an assistant to the person who makes the decisions and nothing will ever happen unless you get past that gatekeeper lol.

Get on their radar, but don't annoy them to a point where the literally tell you to stop contacting them.  One or two emails to get them to respond is enough, sending them one a week to stay on their mind is more than you need to be doing.  Figure out their requirements for investments and only contact them back when you hit the minimum


Figure out what investors have a portfolio of investments within your industry
There are a lot of investors out there, which I mentioned above, and they all have specific industries they will invest in.  If you're in the web design and marketing niche, like myself, you won't peak the interest of an investor who only puts money into the medical field.  Figuring out what investors would likely put money into your company actually isn't that difficult.  You can find plenty of databases out there that have listings of all the major investors, as well as the little ones, and what they frequently invest in.  List all the ones that like to invest within your industry and contact them to figure out what you need to do in order to get an investment.  You don't want to out right ask them for money, you just want to ask them what you need to do in order to obtain an investment, and you will already peak their interest because you sound like a professional

Investors want to put money into businesses that they know more about and not something they will likely be taking a chance on that they have no clue what is going on.  This is why a medical investor won't branch out to different industries too often, they want to know what they're investing in.


Know how much of an investment you need and what you're going to use it for
If you don't know how much money it will take to push your business, you won't get many investors interested in you.  Sure, a lot of investors could be interested in you, but they will instantly get turned off if you don't know what you're going to do with their money.  Think about it, if I told you I need $10, you'd likely ask me why I needed it.  If I told you "I just need it" you likely would tell me to go away lol. 

An investor wants to know you have a business plan in action, and that means you know what you're doing with your money when it comes in.  An investor will be there to boost your success much quicker than you could do on your own, basically leap frogging you through your business plan and gaining even more success in a much shorter amount of time.  This is why you'll need to know what you're going to spend their money on before they want to hand it over.


Make sure the investor knows you're not using their investment as your own salary
If you've every watched the show Shark Tank, you likely have seen them ask if their investment is going to be used to pay the owners salary.  If the business owner says anything remotely close to "Yes" the sharks will drop out and wish them luck on their venture.  An investor wants to know you're going to keep working hard, after you get the investment, and boost your sales exponentially due to the investor giving you money. 

An investor gets turned off when they know you're going to use their investment for your own salary because it just shows you're not going to work as hard for your money.  They want you to pay yourself the bare minimum and reinvest everything you make so you can be even more successful in a shorter amount of time.  Remember, investors need to make money from your company in order to recoup what they gave you, so you need to show that you're dedicated to making millions and not slow down even if you're comfortable with your profits.



In Conclusion
Getting on the radar of an investor isn't always the easiest thing to do, but it can be done once you start to make some money on your own.  To really peak the interest of an investor you need to figure out their bare minimum requirements before they will invest, then contact them when you hit that minimum.  Finding the right investor is better than talking to thousands of them, because only a few will likely be the right fit.  You want to work with investors that like your industry, because that's likely the only type of businesses they'll throw money at.  If an investor knows you're not going to use their money to pay yourself, you're going to be seen as a good investment as long as you're already successful.



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Razzy