Prepare yourself, not just your idea. Angel investors invest first in the entrepreneur not in the business plan. It’s important that the investor and entrepreneur can get along. They will want to see that you are fast, thoughtful and efficient, and can sustain the project through its conception and growth.
Capture the essentials. Angels care more about the presentation than the business plan. Can you, in less than five minutes, explain the project, the return on investment and the growth strategy?
Have a plan from day one. Angels are very interested in your exit strategy. Many investors tire after about seven years with a company and look around for new opportunities. So what is your exit strategy? Are you going to sell all your shares to a new entrepreneur? Go public with the company? Sell to venture capitalists? Franchise?
Do your investor research. You should find out as much as you can about your angel investor. Who has he or she invested in before? Have they been successful? How well do they know your industry? How much time can they devote to you and your idea?
Take care of due diligence upfront. It takes most investors 3 months to do due diligence on your idea. Make sure that it is not a waste of their time.
Negotiate a term sheet offer. Lack of experience can make this a very painful part of the whole project. You can go to the websites of the Angel Capital Association (ACA) or European Business Angels Network (EBAN) to learn more on this step.
Learn the vocabulary—it’s all there on the Internet.
7 Tips For Pitching Your Entrepreneurial Idea, Whether To Angels Or Sharks