How do I successfully follow up interest from an investor?
This question comes up quite a lot and also quite early in my conversations with people looking for investment. I have it listed as number 4 out of 20 but in the great scheme of things it ought to come much later; it should be number 15, but hey ho…. I can only guess that optimism has driven it up the list so who am I to disappoint?
Angel Investors meet lots of people seeking their cash either as investments in equity into a new or established business or as a loan or Joint Venture (JV) in a property deal so they are good at knowing early on who they will be able to deal with.
As this is primarily a people business, don’t get upset if the deal-of-the-century that you have doesn’t get backed by everyone you meet. It might not be the deal, it might be you…or it might be their own circumstances that prevent them from investing.
I have seen Angel Investors attend a meeting where three brilliant proposals have been pitched and many of them don’t invest for a variety of reasons. Sometimes they have no money to invest on the Monday and are flush with cash on the Friday. Sometimes they like the deal but the timing isn’t right for tax reasons or they are still considering investment into a deal that they saw earlier on in the week. So my point here is that their earlier interest in you can wane or change
But if they have continued to express an interest in your proposal, it’s important that you follow up and that usually means providing lots of relevant information.
We have found that the best way to do that is either using Dropbox or setting up a page on a website with all the photos,surveys, spreadsheets and other relevant information clearly labelled.
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There is an important point here that I need to stress….. and that’s folder or file labelling.
Take the case of a survey report. My surveyor will send me a report and the file will look like this:
M-20_43356_Ltr1_Rpt_030416 JTL.pdf
As many of you may know, that’s a firms internal file number for their client (me) and a valuation code. But this label is no use at all to the potential investor and there’s no point in simply copying that file into Dropbox.
If the valuation is for a site, say in Liverpool that you have been discussing, save the file As ; Liverpool Residential site Valuation 03 April 2016.pdf
Your folders and files need to be clearly identified. Nothing puts an investor off more than a lack of information, too much irrelevant detailed information or worst of all, information that he can’t identify or find.
This and many more subjects will be expanded on in the Raising Angel Finance 2- Day Course on the 28th and 29th of October 2017 in Peterborough, UK. For more information contact: karlenepartridge@progressiveproperty.co.uk
Ray is a shareholder and Regional Manager for www.AngelsDen.com and Property Angels Den where investors are introduced to entrepreneurs or developers seeking finance. If you have a proposal click here: Application form page: http://www.RaisingAngelFinance.co.uk/investment-application-form.html
If you are interested in becoming an Angel Investor, Click here: http://www.becomeanangel.com
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