Tips When Finding Angel Investors

When starting a business you will want to be wary of people who are offering to write your business plan for you for a large upfront fee and then offer to show it to their network of investors to get you the financing you need.

This area of business is rife with scams so make sure you investigate any company that is offering this service. These scam companies will try to sell you on the dream of writing your business plan for you and then shopping that business plan around to their network of investors and all you need to do is pay these scam artists an upfront of a few thousand dollars for their services. The only problem is that once you and your money and you business idea to them they suddenly become unreachable and are never seen again. So before signing up with any these companies make sure you do your research thoroughly or you could soon be parted with your money and your business idea.

A company will typically be able to show you testimonials from past clients it has had dealings with and this is a good opportunity for you to be able to independently verify their claims and ensure their testimonials are above board. If you can’t verify any of the testimonials yourself you might be wary of that company.

This is not to say that all of these companies are out to scam as I’m sure there are lots of the companies that are legit and will do just what they say they, just make sure to your homework before you sign up with these companies. Be aware that even with the legitimate ones there are normally a lot of strings attached before they will provide you with any funding. A lot of them will want to own a big share of your company if they provide you with the start up capital which means effectively from the moment you accept their funding they will get to take a large chunk of the profits you make for as long as you run your business so make sure to read the fine print before accepting any offers in order to make sure you are happy with the deal you are getting.

Also if you sign up with these services that offer to write your business plan you will be missing out on an important part of the business process which is the creation of your business plan. By going through the exercise of making your business plan you will be learning vital information about your business and your target market. By creating your business plan yourself you will be better situated when it comes to knowing your target market and will have a better handle on how you want to grow your business. If you leave it up to someone else you will have missed out on doing all the research and strategizing on how best to operate your business.

Best of luck to if you decide to pursue this line of funding from angel investing companies just make sure to read the fine print of any of contracts and funding offered to you and make sure that you are signing up with a legitimate company that can provide the services they claim to offer so you don’t end up wasting time and money when starting your business.