Raising capital for a Florida business may seem like the biggest hurdle you have to face before you can get your company off the ground. At the Law Offices of Levi Williams, P.A., we often advise entrepreneurs who are searching for ways to get their businesses funded. Angel investors often provide an excellent income addition to traditional bank loans and business lines of credit.
According to Forbes, before you begin to seek angel investors, you should understand that this type of investor typically expects an equity ownership interest in your company in return for the investment. This often equates to a mentoring or advising role in your business.
Also before you begin the search, you need to do your homework and be thoroughly prepared to make a clear, articulate pitch. Angel investors will want to know that you have an idea with potential, but you will also need to show a well-defined business plan, as well as how you plan to market your business’s products or services, what experience you have in this arena, and more.
Capital is another area of interest for angel investors. What other capital have you raised? How much will it cost you to run your business each month, and how long do you expect your current capital to last? Can you provide two years’ worth of financial projections? What process and assumptions did you use to create those projections?
Much of the preparation for seeking angel investors may be groundwork that you have already laid in preparing to start your business. For more information about business startups and planning, please visit our webpage.