How scalable is your business?
Looking at your investment proposal from an angel Investors point of view, how scalable do you think the angel will think you business is or could be?
1: Location only
2: City wide
3: State or Region wide
4: 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 or services city wide as the ability of a business to achieve scalability is directly proportional to its ability to create a standardized workflow or process that can be easily replicated to produce similar results. In other words your angel investment proposal should create a cookie cutter template model that is and can be easily rolled out.
The more scalable your business is, the more interest it will attract from angel investors'. Obviously if a business has a viable and obtainable market on a global level (ie; steel manufacturer) vs. a small local market (ie; 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 angel investment criteria. Some angel investorss 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 on a large level. Other reasons might include their understanding of a certain business, their experience in a certain industry, or a preference to stay in a smaller more manageable market where the returns might still justify their target ROI, etc.
Venture Giants is a premier UK business Angel investment network and small to mid sized business networking portal that matches active business angel investors with entrepreneurs' seeking investment capital and business funding.
Written for and behalf of Venture Giants Enterprises Ltd. All rights reserved 2009
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