Prior to seeking angel investment, it is important that your business is at the right growth threshold and that you are ready for the responsibility of having outside investors. Below is a checklist that will help you to decide if and when you should seek an angel investment.

Management team. Is your team experienced, driven, coachable, and willing to cede some control and decision-making authority to outside investors?
Target customer. Do you have an identifiable market segment? 
Is there a demonstrable and significant demand for your proposed solution?
Market size. Is the projected spending in your product category large and growing? 
Competition. Have you identified potential competitors? 
Do you understand your company's differentiation points?
Will true barriers to entry help your company to maintain a competitive advantage?
Technology. Have you proven the concept behind your product or technology?
Can this be confirmed with data or by objective experts?
Have you built a comprehensive business plan to commercialize the technology?
Protected intellectual property. Have you protected your intellectual property?
Have you performed an exhaustive search to be sure that you are not infringing on patents or trademarks held by others?
Sales strategy. Do you have a plan to achieve widespread market penetration for your products and services?
How will you do this as efficiently as possible?
Will you create an internal, direct sales team, or will you rely on external channel partners?
Profit potential. Can you demonstrate how high gross margins and consistent cash flow growth will be achieved?
Capital needs. Have you identified use of funds raised and how they will incrementally grow your business? 
Do you know how much capital will be needed to get to breakeven?
Financial projections. Have you developed reasonable financial projections - including an income statement, cash flow and balance sheet and supporting spreadsheets - based on logical, realistic assumptions?
Exit strategy. Do you have a clear exit strategy that will enable angel investors to generate a return of at least five times their initial investment?
Business plan. Have you developed a comprehensive business plan that articulates your key business strategies for how you will grow your venture?
Board of Directors. Are you ready to work with a Board of Directors?