What can an angel do to improve the investment process? There are a long list of activities that an angel investor may complete before starting the hunt for the right business opportunity that will improve results and save time:
- Make a list of world problems that you care about and pick your top three concerns
- Determine how much money you have to invest
- Determine how much money you will invest in a single opportunity
- Determine at what stage in the development of a business that you will invest
- Determine how long you can leave your money in an investment
- Determine how much money you want to get back from your investment
- Determine how much money you need to get back from your investment
- Determine how much time you will commit to help a business achieve its goals
- Determine when you can be available to help a business
- Determine what skills you can bring to help the business
- Determine what other resources you can make available to help a business achieve its goals: contacts, facilities, equipment, transportation, memberships, discounts, etc.
- Determine how you would like a business to recognize your contribution to its success: high return on investment, send a holiday card, include you on the podium at an awards event, etc.
- Determine what would give you the greatest sense of accomplishment: making more money, solving a problem, helping a person, community or the world
Completion of this analysis will enable an angel to not only to quickly pass on business opportunities that don’t match their preferences, but to actively search out those business opportunities that best match their preferences. Time expended in looking at stacks of business plans and listening to a string of pitches can be avoided. This time can be directed to helping a business succeed and realizing the benefits of that success.