How do I find an angel investor?

With the difficulties that are being faced by business owners to secure financing through traditional routes, many of them are choosing to look, for angel investors to put money into their business. However, finding an angel investor is not as easy as looking in the phone book. Savvy business owners know that it can take a great deal of preparation and effort in order to gain the interest and attention of an angel investor. The reality is that once a business owner finds an angel investor there is no guarantee, that they will gain the investment. However, by properly preparing and most importantly knowing where to look, business owners can greatly benefit, by the investment of money, time and experience, from angel investors. Here is what you need to know about how to find an angel investor-

• Ask other business owners and contacts-Angel investors are a part of the business community. You can often start by contacting other business owners that you know to find potential angel investors. It is important to keep in mind that most angel investor like to be involved in the businesses that they invest in, so your best chance is to start locally. Because your angel investor will want to drive over to your business and see how things are going, you are much more likely to attract the interest of an angel investor that is close by. Other business owners and other contacts can let you know who that might be in your community.
• Be active in the business community-Finding an angel investor is often all about networking. Running and growing your business goes far beyond an 8-5 schedule in the office. You will want to be active in your local business alliance and Chamber of Commerce. These are the people who can let you know about the potential, for angel investors, for your business. Make it a point to attend meetings, network, speak up and get involved in anything that deals with business, where you are located.
• Attend trade shows and other industry related events-Many business owners make the mistake of thinking that trade shows are to expensive and other events are a waste of time. This can be a serious mistake since many angel investors use these types of events to scope out potential investment opportunities. You need to make sure that your business is out in the front of the market, where it can be noticed by an angel investor who is looking, for a new investment. Trade shows and industry related events are a great way to do this.
• Ask your banker and other business professionals-It is part of the job of your banker to match up potential angel investors with business looking for investors. You should not hesitate to contact him, for information about potential angel investors. Your banker may be able to give you either the names of potential angel investors, or someone who can refer you to one. In addition, you should contact your attorney and other financial professionals who work with your business, to see if they have any possible leads in meeting with angel investors.
• Go online-Because of the very nature of angel investors this may not be as successful as the other methods listed above. Because angel investors like to be directly involved with the businesses they invest in, they are less likely to consider putting money into businesses outside of their close geographical area. However, this is not a hard and fast rule. You may still find an angel investor who is willing to invest in your business, even though you are not located nearby, so you should not hesitate to try this method.