It takes more than a catchy name or unique idea when it comes to catching the eye of an angel seed investor like Sultan Alhokair.
Based in Boston, this financial analyst works with Valia Investments. Together, they look over hundreds of business plans, trying to find the ones with that certain ‘it’ factor.
Start up companies rely on Angel Investors like Alhokair for seed money. Without it, new companies would rarely get the cash flow required to cover their start-up costs.
But what does Sultan Alhokair, who graduated from Northeastern University, look for when he’s deciding what to invest in? There answer is more complex than one would possibly expect.
There must be a well thought out business plan. This is the only way to get a feel for the business and its founders. A business plan will tell any investors if the founders have researched their product thoroughly. It will also show if they’ve researched their competition.
Because every business has competition. If you don’t, then you haven’t thought things through enough and need to go back to the drawing board. Even if your company provides a unique product or service, at some point, you’re going to have competition. And when that happens, you need a game plan.
Also included in that business plan should be some type of time line. It’s perfectly fine if a business has a finite period of time, as long as the founders not only realize it, but disclose their limited time span to any potential investors.
If, however, the founders don’t foresee an end, then they need to project where they expect their business to be in five years, in ten years, and even up to 20 years. All while keeping in mind the consumer’s never ending quest for the next best thing.
When you consider this isn’t even half of what a business plan should entail, the entire process seems quite daunting. However, this is where someone like Alhokair can be invaluable.
Not only would he provide much needed dollars, but his advice, his experience, his overall knowledge would be simply invaluable to someone starting a new business. By putting forth a well thought out plan, with full disclosure, Angel Investors can look it over, give honest opinions and assist in smoothing out the rough edges. You can look-up Sultan Alhokair and follow his Twitter feed.