Try to personally finance and bootstrap you firm as long as possible, until the need for external growth finance becomes evident and unavoidable.

Weigh carefully the pros and cons of business angels before you initiate the search for, and discussions with, private investors.

If business angel finance is deemed appropriate, form realistic expectations of roughly how much money you need and how much equity you are willing to surrender.

Try to learn as much as you can about business angels and how they behave; decide what type of business angels you prefer in you firm and what role you want the investor to assume. For example, some young ventures in need of accounting and finance assistance often try to find a business angel with such skills to contribute, in addition to money.

Sharpen you business plan with the latest information, realistic financial projections, and rough potential valuations. All too often, investors see poor business plans that do not explicitly show that the entrepreneur has fully thought out possible scenarios. Realistic financial projections show the competence and care of the entrepreneur.

Try to find business angel investors by following any of the ten principal search methods that include: personal networks; professional networks; snowballing; formal matching services; angel alliances; venture capital clubs; electronic matching services on the Internet; matchmakers; mailing lists and publications; investee firms.

Learn to discriminate between investor types and not just take the first offer, but rather the one most appropriate for the good of the firm. Your should also carry out due diligence of their own on potential investors; it certainly is a two-way street. Once a worthy investor has been found, you should learn how to hold your own in the negotiations stage.