Got a great idea at hand? Have an A-listed team? Want to launch yourself in the online business? Just jump into it. Startups are an emerging trend in India. Many businesses that are big brands were startups in their early stage. Myntra, Grofers, Zomato, Paytm had all been struggling startups with a great idea and good team. However, the backup of the perfect angel investor for their company was a boosting catalyst for their power-launch.
Every startup needs a launchpad where they can implement their ideas without having to worry about the financial risk that arouses. Here the angel inverstors play a major role in boosting the work and growth of a startup. However, the perfect angel investor is hard to find in the very early stage. The need for angel investor arise only once the startup is up and running and wish to expand in its business ventures.
The wikipedia description of a perfect angel investor is, “an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.” A perfect angel investor may be anyone who is rather impressed with your startup idea and is ready to invest a considerable fund into your business. These invetsors can be from any professional background or an entrepreneur themselves. They can also be business leaders or community heads.
Finding the perfect angel investor is the most challenging task for a startup. For first-time entrepreneurs, it might be even more tough as you are entirely new to the industry and only a handful of people might know you. Thus rather than you going out looking for an investor, make investors come to you. If you have a great product idea and are performing well on the social media, you will automatically be noticed by investors who are always on the lookout for unique and genuine ideas.
A powerful business plan
A startup can only be a successful one if the business idea is unique. A powerful business plan is a must if you wish to expand and make a mark in the global online market. A complete plan that targets to move a business forward should be clearly written down. This helps in better execution of your work. Sketch out the business model that you plan to implement in your business operations and the way you would be earning revenue. If your business model is able to develop a competitive advantage, it will be simpler for you to find the perfect angel investor.
A business is doomed if it does not have a proper business plan. However, no entrepreneur or investor can guarantee that a business would succeed if it does have a business plan. It, however, outlines the source of revenue and the goal that the business would work towards to achieve.
The best team
The angel investors are keen entrepreneurs who take an interest on not only the business but the individuals as well. Thus it is not only important for you to have a great business idea but have the best team as well. The perfect angel investor unlike venture capitalists, take a direct interest on your venture.
They often tend to get involved in the day to day operations of your business. This helps the angel investors in knowing you and your team better. This further boosts your business as the investors are often entrepreneurs themselves. They help you by guiding you through the various business stages until it is up and running.
Working with a good team who are highly motivated and aspire to grow, prove worthy for investment by a perfect angel investor. A team that is able to work and deliver projects on time and meet targets can go on to become successful startups in the future. Team work is a major element in any startup who want to really make a mark in the online market.
Integrity is important
One major business trait that a perfect angel investor looks into each entrepreneur is the element of integrity. For startups nothing can work smoothly in the beginning. However, trust and integrity is something that is necessary for any business to survive.
The need of determination and an urge to succeed in the competitive market is crucial for entrepreneurs to work. A perfect angel investor takes the elements of trust, determination, faith and integrity rather seriously. These often form the major elements of business when an investor decides to invest in a new venture.
Integrity helps build a brand image and reputation for the business. It thus becomes a main mark of identification in the market where most businesses are scams and fraudulence. Building a transparent relation between the customers and employees immensely contributes in this factor.
This also helps improve the quality of output and the overall business as people start trusting your brand more and more.
Evaluating the risk
Understanding the risks that a business involves is important for entrepreneurs to understand. Being realistic is a prime trait that every entrepreneur big and small should have. Understanding the business and all the different risks involved with it is necessary.
Entrepreneurs should keep in mind that while the idea integrated in the business is theirs, the money involved in the business is that of the investor’s. Thus entrepreneurs should take calculated risk and analyse every condition thoroughly before investing into any field of business.