Looking at your investment proposal from an Angel Investor’s point of view, how scalable do you think the angel will think you business is?
How big do you think you can scale your business?
- Location only
- City wide
- State or Region wide
- Country wide
If you had indicated that your business can or will be scalable on a location or city wide level than this is a part of your angel investment proposal that requires additional consideration. Ideally, your business plan should be carefully crafted to support scalability and growth on a city wide, state, country, and/or global level.
Remember this is more than just identifying the potential to market your products can reach. Ideally, your angel investment proposal should incorporate a cookie cutter template model that can be easily rolled out. This shows prospective investors that the business is easily scalable and that there is already a blueprint in place.
The more scalable your business is, the more interest it will attract from Angel Investors. If a business has a viable and obtainable market on a global level (e.g. steel manufacturer) vs a small local market (e.g. convenience store) there will be a considerable difference in the potential sales and income of the business.
However, the level of interest from an Angel Investor will still depend on the projected ROI and how that fits their investment criteria. Some Angel Investors are much more comfortable with a more conservative approach which means you can still attract interested Angel Investors, even if your business is not scalable to a large degree. Other reasons might include their niche knowledge of a certain industry, or a preference to stay in a smaller more manageable market where the returns might still justify their target ROI.