Many entrepreneurs in Minnesota who have a great idea for a business may not necessarily be able to go to a bank or other lending source and get a traditional loan without collateral. However, according to Forbes magazine, there may be individual investors, called angel investors, who are interested in getting on board with a concept they believe in.
Finding angel investors may be challenging, but there is a process. An entrepreneur should prepare by determining what would make an angel ideal for his or her company. Because investors often want to have a voice in the business, it is wise to look for people with a background in the same industry, and who live in the area. Preferably, an angel will have a net worth that exceeds $1 million and a yearly income of more than $100,000. Most are between the ages of 40 and 65.
Many angels attend industry-specific conferences and events, or join groups that have an online presence, which makes them more approachable by entrepreneurs who have done their homework. Even though one investor may decide that the company is not a good fit, he or she may still pass on the information to someone else, turning a perceived failure into a successful financial connection.
Inc. magazine adds that in order to gain the attention of a potential investor, it is essential to create a presentation that will draw people in. This includes not only explaining the product or service, but also the company philosophy and vision, and the plan for marketing, workflow and other processes.