Finding a business angel investor that is both reliable and right for your business requirements is certainly no walk in the park. With many established business angels now having a fully pledged online presence, the search has certainly got a lot easier, but that said, how do you know who to trust since the web is often referred to as a faceless community?

Well, before you even consider looking for an angel investor you should have exhausted all other routes for startup finance. As I have said before but will say again, your family and friends can be a great starting point for startup finance, not only from a cost effective point of view but they will usually give you one of the best market rates available. (i.e. incomparable to regular high street lenders).

The first route I would always advocate for external investment from a business angel is contacting one of the many business angel networks that operate across the UK and overseas. The British Business Angel Association (BBAA) matches investors and companies from across the country. There are several other examples, Envestors.co.uk and AngelsDen.com to name just two. These angel investors are part of a syndicate of wealthy businessman and women who provide competitive funding for small business investments for up to £2 million.

The process of securing investment is relatively straightforward but depending on how you and your business perform, that may not be entirely true. You must plan and detail your business plan (thoroughly), then send in a preview of your opportunity for the investors to consider. If the angel investor requests for more details then you would normally turn up for an interview and a formal meeting. It is usually the “getting through the door” stage that most small businesses struggle with since angel investors have no shortage of applications for funding each and every week. Think yourself lucky for even getting a response from them!

The most important thing to get right before you even consider going to an angel investor is your business plan. The business plan has to be squeaky clean and secure enough to withstand a barrage of questions and queries from your potential investors. If you have seen the BBC television series Dragons Den, you will know exactly what I am referring to when it comes to having a solid business plan. You need to know your business inside out and have all the important figures to hand at a moment’s notice.

You should be prepared to have your business and personal life questioned inside out by an angel investor. I mention this as for some reason some small business owners walk into an investor and feel these questions are inappropriate or aren’t worthy of a proper answer. You have to remember that the investor isn’t just funding your business, they are funding the people behind the business too. Try and put yourself in their shoes before refusing to answer their questions. Refusal to answer will often lead to your funding application being tossed out straight away. They will want to nail down to who exactly is going to be running the business, how they are going to run it, and what your projections are for success and expansion. This should all be in your business plan, but if it isn’t, make sure it is come interview time.

The above isn’t an exhaustive list and certainly aren’t the only things that should be top of your list when you are trying to secure business angel investment but they are a start. Remember, the business plan is key.