Basically search business angels are engaged in by those who invented something new and get a new service or product patent. But the concept of product innovation is much broader – it does not have to be a technical invention, this may be a new look at what already exists. For example, innovation can be a cafe with an unusual service or car wash. You must answer the question: what’s new in the offer, what are its advantages? Therefore, you need to spend a minimum market research that helps to explore the market. Funds may be different from empirical knowledge to the Internet search.
Product Definition audience
You need to decide with who will be the buyer of your product. How wide is the market for the product that you are offering? The invention, as well as a new approach to an existing product or service can be used for different audiences. Business angels are interested in highly profitable projects with more than 29% per annual, otherwise it is unlikely they will take risks. Perhaps, the proposed algorithm can you buy large companies. But finding them can be practiced for a long time. Another option – to make, for example, the software and burn it to a disc. Accordingly, the consumer audience for your product becomes much wider.
Business Angel – a private investor, which is often a job or a business. Business angel has some experience, and it will assist in the implementation of the project, but the applicant investments need to have a team consisting of at least two people. If investments competitor offers a new approach to the product or service is, as a rule, for a project worth an experienced manager. If the applicant proposes an invention that close to such a person to be the manager: what would be a great idea may be, it must be properly implemented.
You may also like to read another article on BSOinvest: Why do a business plan? What is it and why would you need to do?
Writing a business plan
A business plan can make your own or order it in a consulting firm. The cost of services will cost 1-5 thousand dollars business plan should contain the following: project name, product description (special attention should be given to an independent study, and their results), the stage of product development, presumably unit price and the cost of its production, as well as basic functions product. Market description should include information on the annual volume of the market, its rate of growth, segments, and also about your ambitions to seize the market share (in percent). In addition, the business plan must contain information about the required investment, competitive advantages and competitors, the management team of your project, the estimated proportion of an investor in the company, the planned return on investment, and so on.
Communication with the business angel
Typically, communication with business angel comes to presentation sessions. As a rule, the right candidates for three-four projects. It is important for the 10 minutes allotted for the presentation, tell all the most important and the most interesting things about the project. Because, as a rule, after the presentation of questions begin. In the presentation you need to cover all the issues mentioned in “writing a business plan”. The presentation should not be only verbal. It is better to prepare handouts and make a presentation in Power Point program.