Angel Investors 7 Online Business Plan Scams And 1 Real Deal

Angel Investors: 7 Online Business Plan Scams and 1 Real Deal
We've all seen the​ hype: We'll put your plan in​ front of​ thousands of​ investors! We'll write you​ an​ award-winning online business plan! Only $3,​000 for thousands of​ investors to​ learn about your company!
I cringe every time I​ see one of​ these ads .​
Vultures are preying on​ honest business people who want to​ fund their businesses .​
Here are some ways to​ spot them:
1 .​
Only qualified investors see your business plan .​
Yeah,​ sure .​
And who qualifies them? Have a​ friend try to​ sign up as​ an​ investor (that part is​ usually free) .​
How is​ she qualified? is​ there a​ background check? Does she submit a​ financial statement? Odds are that she will be asked to​ do nothing more than sign a​ statement that she has a​ certain net worth .​
That's no qualification in​ my book .​
So who are these investors? Who knows .​
One could be your strongest competitor .​
2 .​
You approve anyone who sees your business plan .​
Okay .​
So what are you​ going to​ do to​ qualify the​ potential investor? Are you​ going to​ run a​ background check? ask for ID? ask for tax returns? or​ just be so happy that anyone wants to​ see your business plan that you​ jump on​ the​ idea? (That's how these scams get away with charging thousands of​ dollars -- too many entrepreneurs are desperate for funding.)
3 .​
It's only $500 (or $300 or​ $100) to​ register .​
What does it​ matter if​ it's free? If it​ is​ diverting your time and energy and resources away from finding a​ viable investor,​ it's not worth it .​
4 .​
Your idea is​ great,​ but we need to​ put it​ into our format .​
This will only cost $800 .​
Don't walk -- run from these guys .​
5 .​
Your idea is​ so great that we want to​ invest $2,​000 in​ it .​
(That's after you​ spend $5,​000 to​ put it​ into their system.) Do I​ really need to​ comment on​ this?
6 .​
Talk with a​ satisfied customer,​ or​ 2 or​ 3 .​
Here's this entrepreneur who just got $2 million in​ funding,​ and he has nothing better to​ do than sell the​ web scam to​ you? Trust me,​ entrepreneurs who just get funded barely have time to​ eat,​ let alone talk .​
7 .​
Look at​ all these written testimonials .​
This is​ harder to​ disprove because the​ testimonials look so real -- even the​ companies might be real .​
But unless the​ testimonials,​ and the​ companies,​ can be verified independently,​ I​ wouldn't trust them .​
And I'll lay odds that they cannot be verified independently .​
There is​ one huge exception to​ this: ACE-Net (activecapital.org) .​
This is​ more properly the​ Access to​ Capital Electronic Network run by venture capitalists,​ institutional investors and individual accredited investors .​
It was developed by the​ U.S .​
Small Business Administration's Office of​ Advocacy to​ encourage the​ creation of​ a​ national marketplace for investors to​ find and invest in​ equity offers by small companies .​
ACE-Net isn't for all companies .​
Those seeking under $1 million will probably find the​ paperwork daunting .​
Those seeking over $5 million won't qualify .​
There are special qualifications,​ and of​ course lots of​ forms to​ fill out -- but nothing like the​ forms required for a​ formal initial public offering .​
But for those who do qualify,​ it's an​ amazing tool in​ raising financing .​
Spend some time with the​ website and the​ forms,​ and see if​ your local SBA office can put you​ in​ touch with another company that went through the​ process .​
As with any investor tool,​ don't rely exclusively on​ ACE-Net .​
Use it​ in​ conjunction with your personally developed targeted funding search .​
This,​ combined with an​ exceptional business plan,​ doesn't guarantee success but it​ places your company head and shoulders above all the​ rest.
Angel Investors 7 Online Business Plan Scams And 1 Real Deal Angel Investors 7 Online Business Plan Scams And 1 Real Deal Reviewed by Henda Yesti on July 17, 2018 Rating: 5

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