What are the criteria to consider when it comes to partnering with a business angel? Working with a business angel rather than with a bank or an investment fund has many advantages. Still, you need to know how to select him or her.
And the perfect Business Angel is…
The Business Angel that brings you expertise
Expertise is the first thing to think about when looking for an investor. The objective is to find the one that will help your business to grow. A Business Angel can be an expert in logistics and help you with the large-scale production of your product. He or she can be an expert in digital marketing and help you boost your online sales. He or she can have extensive management experience and help you manage your growing team. Think of the business angel as a mentor. If he or she invests money in your project, he or she will also want to invest time. They have nothing but interest in the success of your business.
The Business Angel that brings you expertise
Once you have the expertise, you have to use it intelligently. If a different view on strategy leads to disagreements, it could jeopardize your business. Some investors see the big picture, and want to go straight to the international level. It’s up to you to know what dimension you want to give to your business. Some investors may want to put your business in their image and change its nature. Your Business Angel must be your ally and support you in your strategic decisions.
The Business Angel that shares the same values
Values are important within a company. They will set the rhythm of employees’ lives and define implicit rules. You must have the same vision of the strategy but also the same vision of how you are going to implement this strategy. The values must be anchored in the management to ensure the prosperity of the business.
The Business Angel that gives you money (but remember, you are not the only one)
Money remains the sinews of the war. Usually, a Business Angel is called in because you need money to expand your business. The investor makes a kind of bet on your business by bringing in his money. But what is good to know is that a business angel will bet on several projects at the same time to hope to see one succeed. Indeed, the numbers speak for themselves. Only 1 in 10 startups succeed on average. If the investor wants to have profits on the capital invested, a good strategy would be to invest small amounts in many projects, rather than one big investment.
The Business Angel that gives you money (but remember, you are not the only one)
As your potential investors, you have to bet on several Business Angels. Depending on the expertise and knowledge an investor brings to your company, they will get shares of your capital. If one of your Business Angel is getting many shares, he or she will have more power on the decisions (of course, this choice can also be strategic if you consider your business angel as a full partner). But if you want to keep some control over your business, it’s best to be accompanied by several investors who will each bring you their expertise, while keeping the majority on the decisions.
As you can see, finding the perfect business angel isn’t so easy. On Businessdoor.com, get in touch with thousands of Business Angels. What are you waiting for?
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