When you are looking for financing for your startup venture, what could attract the attention of an angel investor better than a solid business plan? Angel investors are a bit of a different breed oftentimes when it comes to how they decide where to invest their money. While many are willing to take a bit more risk than most traditional funding sources, they want to feel comfortable in the risks they are taking.
An angel investor may not speak in fancy terms, or even the business terms you may expect to hear, but rest assured, they want to know how their investment will be used, why your product/service stands apart from the crowd, how long it will take for you to start making money and of course – how long will it take for you to return their money with interest. In this sense, an angel investor is just like a bank loan officer.
While some would ague it is unnecessary, there are entrepreneurs that state without doubt, having two sets of business plans drawn up is a good idea. One set can be the very official presentation with all of the technical terminology and frills that loan officers and the SBA look for. A second can be geared more toward the angel investor that may like something spelled out in simple terms they can easily go through and gain a grasp of your venture’s particulars. So long as all of the data is valid and you feel that a simplified version of your business plan is the right choice, there is no harm in trying it out.