Try asking your friend to set up a meeting so that you can get to know the angel investor through your friend and then you can be on your own to set up future meetings.
Never ask for funding within your first few interactions with the investor. Wait until you have gained their trust and feel that they have a high level of confidence in you before you ask them for money. By this point they should already know about you as a person, your business plans and have met some of your team members, if any. Make sure that you have a detailed business plan so that, when asked for it, you can provide it to the investor. However, a good tip to follow is that whenever you are meeting with them in person, only have a summary of your plan so that you have a reason to make further contact with them.
You’ll also need to have a good grasp on the amount of funding you’ll need, how long it will last and when you expect to start making a profit. Without a good plan and budget, you can easily go through the investor’s money without making any real progress in your business. Having a solid plan will increase their confidence in you as a entrepreneur.
Once you do approach the investor about helping your business, you’ll want to get an initial, non-binding agreement, written or verbal, from them. This simply helps to formalize the partnership while they are initially excited about your business plans and, again, gives you further reason to contact the investor. Try to get them to say that they’ll commit to a somewhat specific number like £20,000 to £50,000. After the meeting, draw up a formal agreement to send over to them or present to them at your next meeting. Getting an initial agreement will help you in approaching other angel investors since you’ll be able to say that you’ve already secured a certain amount of money from other investors.
As with anything in business, a healthy dose of common sense will go a long way in creating and maintaining good relationships with potential angel investors. Once you have found a group of angel investors that you’d like to approach, follow these steps and you’ll make an excellent impression on them.