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Private investors are an excellent way to raise money for your new venture. They also share their skills, knowledge and expertise with you. Here are five things they will look for before they decide to become your business partner.

Your business idea – this should be a unique idea preferably in a market that has growth potential. You should also have a good USP (unique selling position.) You’ll need to prove to your would-be investor that you’ve done your market research.

Commitment – Can you assure your potential business partner that you are committed to this project and will do whatever it takes to succeed.

A Business plan – an investor will want to see a comprehensive package complete with income and expense statements, mission and vision statements, marketing plans, organization charts, and any funds you are contributing.

Experience – working at a fast food store does not qualify as business experience. You will have to update your resume to reflect relevant business courses, skills, and past experience. Previous ownership of a business will be particularly favorable.

An entrepreneurial spirit – no one is more dedicated and more self-disciplined than an entrepreneur. An investor will look for qualities like self-mastery, a continuous desire to learn, and self-management.

Remember that it may take more than one meeting with more than one investor to find one that you are comfortable working with. Don’t be surprised if they want part ownership, and a say in major decisions. Think of them as your mentor – someone you go to when you have questions, concerns or ideas.

Once you know what a business angel is looking for in an investment, you can perfect your presentation skills and give them what they need in order for them to make a sound business decision.

Your idea – investors are always looking for new, innovative products and services. High-tech and high-growth potential products are also favored.

Your skills and experience – what are you bringing into the partnership? They will want to see that you have at least some basic business skills. Have you ever owned a business? What is your education background? Do you have special aptitudes or talents that will help you become successful?

Your Business Plan – how complete and professional is it? Does it provide extensive information on your income and expenses, marketing, market share, organization charts, future projections?

Your Commitment and Dedication – are you 100% committed to your project or are you treating this as a hobby? Investors will want assurances that their time and money will not be wasted on an entrepreneur who is not fully committed.

Your Flexibility – Do you have a plan B in case plan A does not go exactly as intended? Are you willing to listen to new ideas? Are you ready to learn new things?

Your Goals – What do you want from your business? From your partnership with your investor? Do you have goal projections for at least the next 5 years?

Your Funds – Business angels want to know that you are contributing at least some of your own funds to your venture. This shows them that you believe in yourself and your business and you will be more apt to make it work.

Your Profit Potential – investors want to know that they are going to make a high return on their initial investment. They need to feel confident that you have a good product, a good business plan, and an entrepreneurial spirit to propel your business forward and create a profitable enterprise.

Business angels are everywhere, no matter what country you live in. As long as they are confident and see value in what you are offering, they will invest in your business and help you create the business you’ve always dreamed of.

The value of the fund, some of which was actually invested in Enron, crashed to something like half of its original value and has only now, 7 years later, regained its original value.

I don’t want to keep the money in the Janus mutual fund, but I also don’t have a clue where to put it. My wife and I are planning to start a family here soon (we’re already trying to conceive, so it could be in a month or in a year), and we’d like to have some spare money set away for unexpected expenses — of which I’m sure there are plenty in a family with kids.

So what would you do? Stash it in a CD? Put it in the bank? Use another mutual fund? Spend it on some other investment? I’m open to suggestions, but please tell me as much as you know about the type(s) of investment you suggest. There’s a lot I don’t know about investing, obviously, or I wouldn’t be here
Some people have suggested I put this money into savings.

We already have two savings accounts. One for urgent, unexpected needs, and the other that we don’t touch for any reason.

We want to invest this money, not put it into a savings account.

I have a money manager at Morgan Stanely however over the past year my return has been minimal.

I’m thinking about testing out an index fund; any funds that you recommend?

Thoughts?