When entrepreneurs need money to start a corporation, they often turn to outside sources of capital such as angel investors, who invest their own money into startups. Business Insider’s Martin Zwilling says there a number of strategies to find a willing angel.
Networking can be one of the most useful ways for entrepreneurs to develop a relationship with angel investors, Zwilling writes. But the key, he says, is for small business owners to begin networking well before they actually need funding, so they have credibility when the time comes.
Zwilling adds that most angel investors are locally-based and have somewhat regular meetings, which can give entrepreneurs access to an entire room full of potential investors. Many angel groups, however, do charge small business owners a fee to pitch to their company during the meeting.
Even angel investors who reject a pitch can get entrepreneurs pointed in the right direction. New York Times blogger Adriana Gardella says that it can be helpful to ask investors what "milestones" they want to see a company reach in terms of revenue or website traffic before they will invest. Those figures, she says, can give small business owners a better perspective of what they need to accomplish.
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- Investor market unreliable, business incorporation might save entrepreneurs needed cash
