Angels with Checkbooks? Perhaps

Note: Larry on Business now offers shorter blogs (easier to read) more frequently (Tuesdays, Thursdays, & Saturdays).
Today we continue our exploration of funding sources for your business. Please share your experiences.
Definition of a typical angel investor: (1) a successful entrepreneur, (2) that sold their business, (3) with money to invest, that (4) does not want day-to-day operational responsibilities.
Angel investors provide funding to ventures they feel will succeed and give them a high return on their initial investment. Unlike Venture Capital groups angels usually do not want to own or operate the company. They may serve as advisors using their own entrepreneurial experience to guide business owners. You can learn more about angel investors through a series of articles in Inc. Magazine, through Gust, and angel networks.
How to Find Angel Investors

• Angel investors tend to network together. Google “angel investment network”. You will find geographic networks “newenglandinvestmentnetwork.com”, special groups “minorityangelinvestornetwork.com”, or industry “Startup Nation’s Food Section”
  
• Talk to your local Small Business Development Center (SBDC), SCORE,  Chamber of Commerce,  or Center for Entrepreneurship at your local college or university
  
• Google “angel investors in (your state)”

Convincing Angels to Invest in You
Typically, you will present your business idea  to a group of investors (remember they like to network). Watch the television program Shark Tank to see real presentations (though they like to be slightly more contentious for the ratings). Most angel groups schedule a certain day each month, quarter, or year (depending on the size) to review presentations. You submit a written proposal for them to review prior to the meeting. You will be given 5-10 minutes to make your pitch. They will interrupt you with questions as they occur to them.
The Tri-State Private Investors Network provides 10 Tips to Appeal to Angel Investors. In addition, you can also find great tips on YouTube for presenting to angels. Carolyn Brown quotes Mike Levinson as he outlines four questions you must answer in How to Pitch to Angel Investors:

1. Is the business idea simple enough for me to understand and buy into?
2. Does it solve a problem or meet a need?
3. Is it a big enough market and customer base for the idea?
4. Does the entrepreneur have the right people on the team to pull it off.

You can get the angel’s money if you answer those questions better than the other entrepreneurs.  Good luck. I hope you get what you want.
Join me Thursday when I review the pros and cons of Venture Capital investors.