All about angel investors

More and more business owners are finding that it is more challenging then ever to obtain business financing. This is especially true for someone who is looking to start a business or who is a small business owner. Most lenders simply will not lend to a business owner who cannot show extensive assets and experience. If you cannot show your lender that you have the experience and assets you will be viewed as to high of a risk. This has led many business owners to seek out angel investors. However, it is important to realize that this is not a surefire way to get business capital either. If you have any hope of attracting an angel investor you will need to learn all you can about them. Here is all about angel investors-

- Know who is most likely to be angel investor-The first step in finding an angel investor is to understand who is most likely to be one. Demographics show that most angel investors are between 40-60 years old. They most often earn over $100,000 dollars and have a net worth that is higher then one million dollars. They will most often have extensive experience in running their own business. Keep in mind that this means they will most likely want to be involved in any business that they put money into. Finally, most angel investors will only invest in businesses that they understand and have experience with.
- Look locally for a potential angel investor-Typically angel investors will want to only invest in your business for an average of about 8 years. You must be able to clearly show your potential angel investor that your business has the growth potential that they are looking for in order to get the return that they want. In addition, due to the active role that angel investors typically want to take they will most often invest with a local business. They do this since they want to be able to drive over to your business and check on their investment. It is important to keep in mind that it will be much harder to get money from an angel investor from out of your local area.
- Don't be afraid to network-One of the most effective ways to attract the attention of an angel investor is by networking. However, many business owners are often reluctant to do this. However, it is important to understand that most angel investors are brought to the table by the referral process. Business owners who become very active in their business community have a much better chance of finding and attracting the attention of an angel investor. Consider joining any trade or business associations, or the Chamber of Commerce in your area. Any place that business owners gather is a good place to find information about potential angel investors. You should also consider attending trade shows and other industry events since many angel investors attend these type of gatherings.
- Consider going online if all else fails-If you have tried all of the options listed and still cannot get the attention of an angel investor then you should consider going online. The internet can be a valuable resource when it comes to gaining the attention of an angel investor however, it can just be harder. Since most angel investors often only want to invest in businesses that are close by them this can reduce your chances. However, going online can also gain your business the recognition that it is looking for in order to gain the attention and the investment money of an angel investor.