Have you thought of an innovative company with great prospects of success, but you lack the seed capital to put it into practice? What you lack in this case is the ability to do so sell an idea to a business angel. Getting this on top of the money needed to start beginningget one mentor and advisor to help you with future decisions.
Angels have a diverse portfolio
after work Funding high-growth companies: The role of business angels (Financing High-Growth Companies – The Role of Angel Investors), issued by the Organization for Economic Co-operation and Development (OECD), angel investors usually prefer one investment portfolio changeable. “This allows them to diversify risks, knowing that a large proportion of businesses will not succeed while others will,” the work reveals. That way, even if only one or two are right, the angel expects the return to be high enough to cover the lost investment in the beginnings fail and still make a profit. Since they invest in several at the same time, they prefer to keep one low percentage of the company”. This willingness to invest in different beginning is a plus. However, it is not advisable to be overly excited. Aside from the fact that the competition is fierce (there are certainly a lot of people trying to sell an idea), the Angel does not do charity, although its name suggests it. He won’t invest in your business just because he likes your face or because you’re recommended, but if he can prove it’s worth it good financial return.
The business model helps to sell an idea
The first thing a business angel wants to see when someone proposes an idea to them is this business model. Caution: Do not confuse this with the business plan. Contrary to the plan, the model a document summarizedsuggested by Dutchman Alex Osterwalder in the book business model generation (How to generate the business model) (Alta Books Verlag). The idea is to summarize the business proposal on just one page with the following key points: main activity, value proposition, resources, key associations, customer segments, customer relationships, communication and distribution channels, cost structure and revenue streams. When selling an idea to an investor, if you are on the tip of your tongue that all of these essential elements will work, your chances increase. be clear what they will be sources of income is perhaps the most important, since many of your competitors will not present a credible offer for you monetization of beginning.
Approach to sell an idea
Now that you have a well-structured business model, just put it into action: sell an idea to a business angel. For that you need to develop one pitch. This is a term used in the world of beginning to refer to the entrepreneur’s speech when making an offer to an investor. It is important that the pitch is clear, short and factual, because it is possible that your opportunity will arise during a conversation in the hallway or in the elevator. To have this opportunity often events In which investors participate and you are not afraid to introduce yourself and talk about your idea.