- January 15, 2014 at 9:15 am #1972
I’ve developed a Proof of Concept for home automation. I’ve talked to a few people and they would be interested to join me but the problem lies in funding. Even, I can not afford to leave my day job and work on it full time. Do I approach an angel investor now? Is it too early? Should I’ve a complete working thing(ie. atleast a few customers) before approaching any investor? I fear if I do not get into it fully and have a team for the same I’ll lose early mover advantage.
Here is a video for demo of PoC: https://angel.co/home-in-hand
All comments would be appreciated.
SandeepFebruary 7, 2014 at 12:42 pm #2162
Let me talk about some of the important aspects in getting your angel be a part of your dream.
1. The rationale behind every investment
Entrepreneurs should give angel investors a legitimate reason to invest in their company and cherish the skills and expertise an angel investor will bring to their enterprise.
2. A promising pitch and convincing business proposal
This business plan should include any financial projections, comprehensive marketing plans, concise details about the target industry, and who the prospective consumers will be.
3. A solid management team
An entrepreneur must also present a solid and trustworthy management team that is skillful, competent, and experienced in their industry.It is a proven fact that a strong management team can contribute to the successful growth of a company.
4. Proper business structure and organization
Angel investors are also likely to be involved in company operations through active mentoring, management, or being a member of the board. Most angel investors will expect this type of formal agreement, as well as a hansome return on investment, in exchange for providing the new company with the needed business capital.
We are a financial advisory company helping young entrepreneur like to start your own business by legal incorporation,business plan and proposal development,funding and capital structuring.
Name :Biswajoy Biswas
Firm: Stratos Financial Advisory Services Pvt Ltd.(www.stratos-invest.in)
Mobile:09677289735February 7, 2014 at 11:57 pm #2171
Thanks for sharing those thoughts, Biswajit. Much appreciate your insights.
Sandeep – Believe me you are not alone. There are several wanna-preneurs who aspire to be successful entrepreneurs but are either afraid to give up the comfort of their day jobs or simply cannot do so owing to other social/personal (financial) commitments. So, yours is not a unique situation.
Also, I believe you DO know what you’ve to do as you answered most of your questions yourself. You clearly have two options:
1. Boostrap all the way until you get paying customers for your product while you hold on to your job. This might take more time but it would at-least help you validate your idea without foregoing your paycheck.
You can quit your job as and when you do get paying customers and generate decent revenue.
Pros: You’ll have your paycheck while you work towards validating your idea.
Cons: Could take more time. Also, would be tough to convince investors that you really believe in your idea while you hold onto your job.
2. Quit your job and bootstrap with funds from savings, friends or family.
This way you have a chance to take the product to the market much faster (time-to-market)
Pros: You can validate your idea much faster and be able to convince the investors more easily.
Cons: You lose the cushion provided by your job.
I know there is more to it but this is just to give you few ideas.February 7, 2014 at 11:59 pm #2173
..and btw did I mention, I loved the way you demoed your product. Clear and cool.
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