Do you possess great and unique business ideas but with no enough cash to bring your dreams alive?
Well, consider your challenge solved. Sadly, most people in Nigeria don’t know where angel investors can be seen and how to access them. This is why we have decided to explore in this article the best ways to find angel investors who are ready to finance your ideas in Nigeria.
What Is The Meaning Of Angel Investors
Let’s start by describing an angel investment concept. Simply put, an angel investor is a person who sees your business idea as appealing to invest in. Usually, this kind of person has more than enough money to help start-up your business but you must keep in mind that the angel investor automatically owns part of your business. I’m sure this process sounds decent and fairly straightforward right?
Such an individual is typically the first official business investor and gives the initial capital needed to get the company started.
Meanwhile, it is so surprising to know that several Nigerians are not even aware of the term angel investors.
Well, this doesn’t mean you should hurriedly go after every rich man you see around you.
It is important that you know that Angel investors don’t usually dash their money out anyhow, they will most likely fund your business only when they see proof that the business will not only thrive but succeed.
Therefore, You must be fully aware of the mandatory steps to take in ensuring that your business is fit for angel investment.
So, take note of these essential facts before looking out for investors:
– You must be enthusiastic and dedicated to your company as the owner. If you don’t care about your own company, no one will give you money.
– You should have a very careful plan on how you’re going to use the money.
Also, don’t forget about the part of the company that the investor owns or the amount you may need to payback.
– Make some research into marketing and attempt to describe your startup potential. That’s incredibly significant.
Before going to meet an angel investor, ensure that you have fulfilled the following important factors:
– Get Your Business Registered
A registered business name should be included in the startup plan.
This shows that you really mean business.
With a licensed company name, people think you have to care about what you do and start to take you seriously.
However, it may cost you some cash to get your company registered.
You need to demonstrate the long term viability of the business you are asking someone to invest in.
– Design A Detailed Business Plan.
The more your corporate plan is detailed, the better.
An angel investor may not have the time to listen to your company’s prospects and to see all your business plan paragraphs.
You, therefore, need to present and pass on to the investors a genuinely short and well-aimed business proposal.
It should be sufficiently important that they become involved and want to meet with you for further negotiations.
– Protect Your Business
Meanwhile, Remember to protect yourself. Angel investors are just people with money, and that doesn’t mean that they won’t steal and leave nothing for you.
It is therefore better to protect yourself from such a situation. Meet a lawyer, and he will help you to find ways to prevent infringement of your corporate concept.
– Ensure You Get Your Conditions And Terms Right.
Most Nigerians find the idea that someone else is the owner of a part of their business quite frustrating. Angel investing, however, is a great opportunity to do your startup work. What a good idea your business is, it doesn’t matter if you don’t have sufficient money to invest, it will not work. If, therefore, you don’t want to split any share, be straightforward about it, and discuss the repayment option.
Who Are Those Who Can Be Your Angel Investors?
– Friends and relatives
The first choice is to approach your friends and family. This might seem like a good idea, and maybe indeed, but do not ignore the costs and inconveniences of such a decision.
The benefits of that decision are that you are well recognized by people close to you to see whether they want to invest or not in your start-up. The downside of having family and friends as investors are the difficulties you face in mixing business with loved ones.
– Public and religious groups
You can easily access an angel investor if you are already a member of an existing religious or social organization.
From this association, you can then meet individuals who are capable of funding your business, share your business ideas with them, or make informal by submitting your business plan to them.
Well, this does not mean that you will automatically get funds from them, helping you fund your business is their decision to make even though the right words and comprehensive business plan can work for you to a large extent.