Obviously, like any other business owner, your primary concern is capital – where do you get the funding to jumpstart that growth?
More often than not, banks turn aspiring entrepreneurs away. On top of that, your own pockets are about as deep as the half-full glass fueling your ambition.
Luckily, there is a savior – the angel investor.
Who are Angel Investors?
They will invest in the range of $25,000 to $500,000 to help get a company started, and while they obviously don’t want to lose their money, they aren’t typically as focused on making a quick buck, unlike VCs. Angel investors are more concerned with the commitment and passion of the founders and the larger market opportunities they have identified.
Sounds too good to be true, right? That’s because it kind of is. Angels are generous, but they’re also cautious experts vary about their business ventures. And when it comes to eCommerce, they see an industry with massive potential, but substantial risk.
If you get inside the mind of an angel investor, you will find that each one has their own investment thesis and philosophy. But there are a couple of issues that all eCommerce investors seem to want.
Is there Potential for Growth?
Is Your eCommerce Business Differentiated?
In many cases, having a unique competitive advantage can be the difference that propels you to success. For Zappos, it was their exceptional customer service. For Beard brand, it was their unique story-telling that carved a unique brand identity for the business. So, how do you stand out?
Is Your eCommerce Business Adaptable?
That is because technologies evolve, and customer preferences change. ECommerce is a dog-eat-dog industry, with competitors viciously grabbing onto whatever market share you let slip out of your fingers. That’s why you need to be vigilant to changes in your business environment and respond to them immediately.
What’s the Founding Team Like?
As an aspiring entrepreneur, you should have clear end goals in mind for your business, and be motivated to take it through all the way. You should also be humble, and cognizant of the challenges you would inevitably face.
In today’s cautious economic climate, angels can be the difference between an eCommerce business’s growth and closure. But just like business owners need someone to bet on them, investors need returns.
That’s why, beyond making business plans, it’s even more crucial for entrepreneurs to actually execute them. Because, at the end of the day, how you choose to use the funding will majorly determine your growth and the angel’s profit.
And that should be simple enough – after all, who doesn’t want to please the angels?
Financing Options For
for Small Businesses