How to Choose an Angel Investor

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How to Choose an Angel Investor

• Not all Angels are in Heaven

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• When starting your own home business, its
  crucial that you have adequate amount of start-up
  capital. For those of us that dont have enough
  in the way of assets, locating an angel investor
  willing to invest in our business may be the best
  way to go.

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• An angel investor is a wealthy person looking to
  invest, usually in the same fields of business
  they became successful with, as this can lead to
  working together and helps ensure success.

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• Typically speaking, an angel investor is going to
  be looking for someone that has a business plan,
  great product, or can otherwise demonstrate why
  their business will be successful. For those
  starting a business near a large metropolitan
  area, you should be able to find an angel
  investor in your chosen niche.

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Should you seek an angel investor?

• Keep in mind that you will most likely need to
  offer partial ownership of your business in
  exchange for an angel investors money. You may
  need to relinquish some control in your business
  to these investors. This can be a good or bad
  thing, depending on how you want to operate your
  business. Since most investors are going to put
  money into the type of business they have
  experience with, this outside help can actually
  be really useful.

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• Additionally, you may have to give the angel
  investor a chance to leave in the form of a
  buy-out policy from larger investment firms or
  public sales of stocks. Dont just sign up with
  any investor, make sure that their wants and
  demands match what youre willing to give and
  compromise on.

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Peek at their Portfolio, Learn about Them

• If you find angel investors that might be
  interested in your business, try to take a look
  at their portfolios before making any large
  decisions. This serves several purposes
• It lets you see how you fit into the big picture.
  
• If they happen to work with a large amount of
  companies in the same field (but not competing
  for business), then it is probable that the
  synergy created between the companies will help
  you succeed.

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Find Locals

• Look for local angel investors. Trying to work
  with a big investor that doesnt know about your
  distribution area and clients will likely be less
  helpful than someone nearby. Additionally, a
  hands-on investor usually wants to be near their
  investments, meaning you and your company. Many
  largest cities are sure to have an angel
  investment group or organization, and thats your
  best bet for finding an investor.

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Resources

• To help you get started in your search, heres a
  website that may help you find an angel investor.
• Go4Funding Angel Investor Network
  http//www.go4funding.com/Articles/Angel-Investors
  /Angel-Investor-Network.aspx
• Original Source Not all Angels are in Heaven
  How to Choose an Angel Investor
• NewHorizonOrg also provide equipment leasing and
  new business financing

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