10 Get the right support Finding a business angel is probably best done through an organised network or syndicate. The British Business Angel Association has a list of networks that adhere to industry standards and this would be a good place to start. If you are an ambitious early stage company in Norfolk or Suffolk, you can approach us at Anglia Capital Group. We were established in 2014 and to date have invested over £1.6 million in local businesses. We hold frequent pitching events across the region and welcome enquiries from entrepreneurs and potential investors. Sally Goodsell is a business angel, mentor and coach and has been helping companies grow and succeed for over 30 years. She is a frequent media commentator on financial issues and works as a consultant with Anglia Capital Group. Contact her at Sally@ angliacapitalgroup.co.uk
8 Be prepared Once you have found an investor, they will want to check out the business and will undertake a due diligence review (This is where most deals fall down). It can seem tedious and you may end up answering the same questions many times over. Be well prepared. Make sure your company documentation is up to date (Share register etc) or get some professional help to sort it out. Be patient and provide information when asked and promptly. Don’t try to hide anything! 9 Keep it real Valuation of your business is probably the most emotive issue for any entrepreneur and investor. You will always have different views on this and it just needs to be worked through and negotiated. A business angel is unlikely to be interested in investing if the stake on offer is too small and the valuation unrealistic, but as an entrepreneur, you will need to retain sufficient equity for future funding requirements.
6 Understand your numbers. It is your business and you have to justify any data that you share with potential investors. If crunching numbers is not your forte, get some professional help in putting your forecasts together - but make sure you understand the underlying assumptions and can answer any questions cogently and accurately. If you don’t know the answer, be honest and don’t try to fluff your way through it. You will be found out! 7 Smart money is always worth more than passive investment. Business angels are active investors and want to see you succeed. They can be an invaluable source of support, advice and experience and often know a lot of useful people. Most entrepreneurs say that they underestimate the value of this before investment, but it is the thing they value most in the post investment period. You are effectively partners in the business - so it is worthwhile understanding the implications of this. Be open to advice, prepare to be challenged - but with the right investors on board, it will be worth the ride.
L O C A L B U S I N E S S | S C R U T T O N B L A N D | 7 B U S I N E S S F I N A N C E
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