The Moment Angel Investors Turn Down Your Fantastic Business Plan

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You spent a lot of time and effort developing your business plan before presenting it to investors. You believed you had crossed all the T’s and dotted all the I’s.

Nonetheless, numerous investors have already turned you down, which is obviously quite distressing.

What’s the problem? Perhaps nothing, but this vetting and feedback process can be an educational endeavour.

If you pay close attention, you can get much more than just a thumbs up or down. It’s not as simple as finding the proper angel and then charging full speed onward.

While tenacity is necessary for a successful business to take off, mindless commitment can derail a firm.

Don’t nurture a flop and then accuse the investors. Pay Attention. Maybe they’re giving you the information you ought to know.

Also Read, Seeking the Right Angel Investors  

Don’t presume the investors turned down the concept because they were stingy, foolish, or lacked vision.

One rejection could be an outlier; numerous could indicate a problem. Evaluate what is genuinely wrong and whether any of the following factors apply:

Perhaps the investors don’t want to tell you why

When analyzing a rejection, keep in mind that you may not have gotten the entire story. Investors are not required to lay all of their options on the table, which might lead to a distorted picture.

If they have already begun to invest in a firm that is too exactly like yours, they may not want to gamble with their own money!

Some investors will raise the possibility of a conflict of interest. Others, however, will simply say no.

If, on the flip side, you receive some positive feedback, attempt to find out what’s going on: Your team? What are your projections?

Not every investor will share the complete reason for rejection, particularly if it is personal in nature. You may be required to decipher body language or read between the lines at times.

Perhaps the investors have an issue with your strategy

If the investors are unwilling to put money down, something in your proposal may be putting them off. Nobody wants to hear that his (or her) child is ugly, but your business concept might not be so fantastic.

If your suggestions are being turned down, it may not be time to quit your day job just yet.

Investors are looking for a plan with an enormous prospective market, scalability, and defensibility. They want data that is credible.

Don’t think they’re too ignorant of your viewpoint if they don’t see those in your presentation. You might be the one who ought to gain a clue.

Perhaps the timing is simply off. You could be too early

Don’t dismiss that thought. This rejection can serve as a signal to take a pause, get some distance, and reconsider the idea.

An innovative concept may be “too new” to be profitable. Be patient and give it some extra time. Refocus. An excellent business deserves extra thought.

Perhaps rejection is an opportunity in disguise

Some angel investors become financially successful, experienced, and well-informed before they have money to invest.

A lot of individuals will share insights they learned the hard way. Take note: There’s no excuse to plunge your life, money, and the lives of others down a black hole when the indications of danger are obvious.

Furthermore, it is often preferable not to look for investors for your startup.


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