Why did we put raising money from investors so late in the outline?  The simple answer is: you MUST make a lot of headway with steps 1-11 before you're ready to raise money from investors. 

Many technologists think this is unreasonable - that investors should simply fund smart technologists.  Unfortunately for the entrepreneur, investors need to be convinced that there is potential for significant financial return.  Having fabulous technology is not enough.

Keep in mind that the vast majority of business start-ups never raise investment money from angel investors or venture capitalists.  The vast majority of small businesses bootstrap, and fuel growth with revenue.

There's a good reason for this.  Raising money from investors is hard.  And your business has to meet certain criteria to convince an investor that the risk is worth the reward.

The following sections provide an overview of both venture capital firms and angel investors and what they look for, and describes the process of raising funds.