A well rounded team
While your idea is extremely important it can’t be brought to life without the proper team. Having a founder who knows what they’re doing as well as a team to back them up is important. The founder can’t be perfect at everything, which is why it’s important to have a well rounded team.
Angels want to be sure that they’re going into business with people who they will get along with and they trust. It’s imperative to establish a relationship with an investor and prove to them that you are credible and can be trusted. It also doesn’t hurt to have a team who have complementary personalities.
A business plan
When it really comes down to it one of the most important questions that angel investors want answered is: how will I make money off of my investment? It’s important that entrepreneurs are transparent with their business plan, the amount of risk and don’t over exaggerate during their pitch.
The business plan need to be completely written out. Everything needs to be asked, answered and planned. “What’s the problem that’s being solved? What’s the business model? What’s the market like? Who are the competitors? What advantages are there over the competition? How will the investor make money?” (inc.com). Just because a business plan is created doesn’t mean that everything will work out smoothly. But it shows that the entrepreneurs have thought about everything, have done their research and have a solid plan in motion.
Understanding the risk
While an entrepreneur should be excited about the future of their company, they should also be realistic. Things can and do go wrong all the time in the startup world. Entrepreneurs and the rest of their startup not only need to understand that things can go wrong for them and their business but that if something does go wrong it significantly affects the angel investor too. Entrepreneurs need to show angel investors that they understand the risks and concerns of the investor.
Focus, expertise and integrity
When starting a business everything can go wrong. Nothing is certain. Focus, expertise and integrity are extremely important qualities that the founder and leadership team must posses. Angel investors look for entrepreneurs who are thrifty, resilient, determined and passionate. They look for startups that “understand the need for monetization but do not sacrifice the integrity of their vision, product, service or company” (creator.wework.com). Manage a budget and rise to the occasion when times get tough. Set realistic goals and then exceed them.