Three Reasons Why You Haven’t Closed Your Angel Investor Yet
by Andrew on in Angel Fund Raising, How To
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I’m sure there are potentially hundreds of reasons why you haven’t closed your angel investors yet.
Now this is a blog and there is no way I can know who is going to come read this article right?
So – there are no cards up my sleeves, we didn’t meet each other previously and there are no obvious tricks here right?
Right…Good…glad we cleared that up….
So today, I’d like to try an experiment….
I’m going to propose three reasons why you have not closed your angel investors yet…
And here’s the deal – and this is where it starts to get really interesting…one of them is ABSOLUTLEY not the reason why you have NOT closed an angel investor yet…
…but I’m not going to tell you which one it is…you’ll have to figure it out.
That should make this experiment really easy right?
If one of the reasons is a fake then that only leaves two reasons why you haven’t closed your Angel Investors yet…
…(and just to give myself somewhat of an ‘out’ – elements of each reason may be accurate,other elements perhaps not so…well, hey, I’m the author, I can stack the deck any way I want!)
…and if there are only two big reasons why – if you know what those reasons are…then you are that much closer to addressing the reason right?
…right…
Here are the Reasons – now…don’t forget ONE is absolutely not the reason and one of the other two is!
YOU have to determine which is which and by all means add your thoughts to the comments or send me an email with your thoughts…
Three Reasons Why You Haven’t Closed Your Angel Investor Yet:
Reason 1
The reason you haven’t closed your angel investors yet is not your fault. Basically the economy stinks and the amount of cash out there to invest in new businesses has dried up. You, your business, your business plan, executive summary, elevator pitch, your sector, your positioning and your vision for what your business can be and your understanding of how to get there are all PERFECT!
It is absolutely not your fault – it’s the market and it’s because you haven’t met the right angel investor yet. As soon as you meet the RIGHT angel investor (even though the economy stinks!) you’ll close that right angel and be on your way to business success and fulfilling your dreams to create a world changing, heavily lucrative, personally rewarding company.
Right – that was Reason #1 by all means read it again to determine if that is one of the real reasons or the fake one. Remember – one reason will be fake, the other two possibly your reason /s.
Reason #2
The reason you haven’t closed your angel investors yet is absolutely and categorically your fault!
You’re just plain not ready to have someone drop $500K…$250K or even $2.50 or a semi-eaten bagel on your business, for that matter. You have the beginnings of a great idea – an idea which COULD become a great business – but you haven’t really jumped in and really owned making this happen, making sure you absolutely understand your market, your opportunity, the competition, and how you will deliver on the potential that your business has – you haven’t completely NAILED your business plan, your executive summary, your pitch deck, elevator pitch, your financials, you haven’t figured out how to creatively trial / test your business idea and you haven’t achieved many of the key milestones investors will evaluate you on as they go through the dating process. You have sort of determined your weaknesses – but you haven’t addressed them or completely determine a specific and tactical plan of action which will address them, like, yesterday.
Now – I could keep going but you get the gist…
So is this the real reason why you haven’t closed your angel investors yet (or is it the fake reason?!)
Reason #3:
The reason you haven’t closed your angel investors yet is absolutely and categorically your fault!
This reason is more around the ‘How to’. Believe it or not, you can’t just throw out a few emails, make some calls, meet a few folks for coffees, have a couple of meetings, throw a Kinko’s bound business plan across the table and expect that after a few follow up conversations you’ll be watching the ink dry on a new check made out to CASH! It ain’t gonna happen – and if you think it will or thought it will then
“Don’t Quit Your Day Job!”
So picture this….
You go to a car lot – you talk with the car salesman – and he tells you how great the car is but here’s the weird thing….he doesn’t actually show you the car. He just asks you to imagine it, tells you how nice the speakers sound (without letting you listen of course..), he tells you how soft the naugahyde leather seats feel, he tells you how powerful the engine is and how fast it can accelerate from zero to 60 in first gear…
…but, he doesn’t actually show you the car. Not even to toot the horn!
All the while you’re looking around a vacant car lot…
No cars – not evens a hint of a car…
So let me ask you a question….
How big a check would you write that salesperson for that car?
Yeah – me too!
So again – what makes you think that with some fancy footwork (assuming you even HAVE a great business plan, executive summary, financials, pitch deck, elevator pitch, …yadda yadda yadda…)
…that the investor will quickly see how great your business is and give you the cash you need?
Believe it or not – you have to know HOW to go through the investor funding process or at the very least, understand many of the dynamics, triggers and motivations involved.
++
Right folks…so which is the fake reason and which of the other two hit the nail on the head for you to some degree?
…and if today’s magic trick doesn’t hit the spot…
I challenge you to tell me why not…
…and if you’d like my help addressing any of the above – let me know through the contact page above.
Andrew
PS – Do you think I wrote this just because I was having a boring lunch? NO! I wrote it to help you. If you would like more help – join my mailing list (right column sign up) and my RSS feed (little orange icon…can’t miss it!)
PPS – take this survey and tell me what you need…and how you can start…really start growing, that great company of yours….
http://www.surveymonkey.com/s/SVMFLJT
Andrew
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Tags: angel investor, Business, Business plan, Consulting, entrepreneur, Financial services, Investment, Small business, venture capital
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