I need some basic guidelines what one needs to consider when choosing : 1) How to decide the angel investor who wants to invest in you is the right investor, because I might be deal with them everyday. 2) Once I do have the funding what are the usual things I need to consider. Trying to understand how the funding should be alloted. Does the angel investor tell me where I should invest to pivot my innovation (because its his cash) or do I need to make those decisions. 3) What do most entrepreneurs do when they receive funding from an angel investor? FYI : I'm in the R&D industry and do have a working product.
Simple: The right investor is someone who wants to invest on standard terms at a good valuation relative to your current stage. Extra bonus points for someone who has relevant industry connections that could accelerate your business and is willing - at the right time - to make introductions for you.
But you should have really quite low expectations of most angel investors. Certainly they should have NO operational control of the business. Although I want to be as helpful as possible to companies I invest in, it's entirely for the entrepreneur to drive me, not the other way around. There are very few exceptions to this rule, for example when angels who actually do have very recent and relevant experience want to back someone who is inexperienced and need oversight in order to feel comfortable investing early. But this is a real rarity.
Finally, to answer your question about what entrepreneurs do when they receive funding, they should spend it in the best possible way to accelerate the success of the business.
I'd be happy to talk to you in a call to provide more clarity on the matter and also discuss when is the right time to accept investment. If you have people willing to back you, that's great. You want to make sure you have a clear plan and set expectations accordingly.