Your project is not the only one that deserves the attention of Business Angels. You must therefore put all the chances on your side and show that you have the skills with your team to develop your business. In any case, in this delicate process, where the first chance often turns out to be the last, you will need to be well prepared. What are the reasons that push a Business Angel to support you in your business project? What are your interests to appeal to them? Here are a few tips.
If your chances of being one of the lucky ones are so slim, it is because of the massive demand that Business Angels networks have to face. You have the cards in your hands, and the question remains: What is the best way to show them off?
The determination
To convince them to invest in your project you will have to take into account two dimensions: financial and human.
Identify all the possibilities
Before calling on Business Angels, do not forget that it is possible to finance yourself in various ways and in particular through public or private organizations such as associations, BpiFrance, or competitions. Do not neglect any of the financing possibilities available to you since, if obtained, they will support your credibility with future investors.
Take care of your business plan
It is also imperative to take care of your Business Plan (summary and clarity of the projections of developments must be the key words). Do you like to know where your money is going? Business Angels too. Do not forget to specify the path you intend to take and for what purposes you intend to use the funds that will be granted to you. Thus, you will put all the chances on your side during your oral presentation (which also requires qualities of synthesis in order to convince quickly and effectively).
Prepare answers to questions from Business Angels
Likewise, prepare your answers to simple questions, especially those that involve maximum visibility into the viability of your business: What are you bringing new to the market? Is it your product itself that is innovative or, for example, your way of doing things from a marketing point of view? What is your capacity for more or less long-term growth? Will you be profitable within five years?
Be careful, this upstream work will not be enough. Arm yourself with concrete figures by estimating, among other things, the value of your business. This will allow investors to position themselves on the amount of investment according to the share of capital they will own.
Finally, do not leave anything to chance and carry out market research to be sure that your project meets a need.
Human relations, the real interest in entrepreneurship
At this point, you might think it's all won, but it's just an illusion! The process in which you engage represents a long term work, and if the financial dimension proves to be vital, human relations very often take the top. To ignore it would seriously compromise the selection of your file, so be subtle!
If your only motivation is money, know that Business Angels often invest first in an entrepreneur more than a project. Several reasons can push them to invest and in particular to share their experiences / knowledge with the "youngest" on projects that they would not have time to deal with themselves. Are you eager to learn from their experiences? Will you listen to these people who will behave like mentors to you? To get the best from your investors, you must be able to bring out the best in yourself also by proving your skills, your ability to carry out the project ...
Many qualities inherent in the project leader are often sought after such as positivity, combativeness ... but also open-mindedness, the qualities of adaptation which you can demonstrate ... which will not be negligible in the eyes of your potential future. shareholders.
Against all expectations, Business Angels often tend to abandon the market approach (as solid as it is), in favor of the capacities and qualities of the individual of the entrepreneur. And for good reason, business plans rarely go as planned and the ability to adapt is often the key to success.
Modesty is a quality and a skill
Be careful not to overestimate the valuation of your business and not to give yourself an oversized ego either! Overvaluing your business may automatically dismiss your file by some investors. We must not forget that they also take a risk and that if this risk has little chance of being paid, they will tend to favor another file.
It is above all about selling your project (in the same way that a salesperson sells his product), taking care not to exceed reasonable limits. In the event that you excessively increase the prospects for the development of your business, you risk hardly convincing them ...
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