Do I Need a Business Angel?

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Do I need a business Angel?

You need a business angel if you need some money to invest in your business and if you think you could do with a mentor. Generally Business Angels will not invest in your company if they believe the company has no future and is a bad idea. If however they think your business is an innovative idea and has great marketing potential and selling ability then your are on to a good start. If you have an already established business and are looking to expand over seas for instance then a business angel might be just what you are looking for. They can come up with the finance for your and help with the expansion. Business start ups are also another area where business angels can help.

What is a business angel?

Business Angels are people that have successfully demonstrated entrepreneurial flair and who are willing to help others with there money and advice. Of course this help comes at a cost and they will expect something in return. They are not stupid and would not give out money willy nilly. They will expect a stake in the business and will only invest in companies they see as worthy. Business Angels and mentors form part of a growing investment community in this fast moving and constantly changing society.

What is the difference between a Business Angel and a Venture Capitalists?

Venture Capitalists usually make much larger investments than business angels. Business Angels generally will invest between £10,000 and £250,000 but will not invest regularly. Venture Capitalists usually make much larger investments generally a minimum of £2 million and they don’t often help start-ups. The type of input you get with a Venture Capitalist is more formal and more hands off but a Business Angels will take a on hands on role in management.

What steps should I take to become a successful entrepreneur?

• If you are starting up a business, do not do it for money, do it for the love of it. Businesses take time to set up so make sure you are enjoying what you are doing.

• Make sure you know about the business you are setting up.

• Be persistent – a successful business takes lots of time and hard work.

• Learn from your mistakes, do not be afraid of them

• Use your common sense.

• Ensure the people you work with like you and you like them.

• Be self-disciplined.

• Get a mentor and listen to their advice

What does entrepreneur actually mean?

Well the work comes from Old French meaning ‘to undertake’. However in the Oxford English Dictionary the meaning is ‘One who undertakes an enterprise; one who owns and manages business; a person who takes the risk of profit and loss’. The important things to take note of are ‘undertake’, ‘risk’ and ‘enterprise’.

How do I know if I have a good business start-up idea?

The key ingredients of a good business start-up idea are a great innovative idea, the right marketing opportunity, good selling ability, a realistic finance strategy, a team of experienced people and lots and lots of time. If you have all of these then you are on to a winning formula. All you will need now is a Business Angel to get the finance needed and the expert advice.



By: Adrian Lawrence

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Business Angels Investment

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Sometimes new businesses can find wealthy benefactors who are willing to invest their capital in the business in return for compensation. These individuals are called “business angels.” This name comes from the fact that they step in to an investment situation when no one else will. Often small businesses have difficulty acquiring money for their starting costs. Large investment corporations and traditional lenders are often unwilling to take on the risk associated with beginning a small business. Business angels provide for this need. To the new business owner, they truly are angels, because they save the day in a desperate investment situation.

Typically, business angels will invest in businesses that need an amount that falls within £10,000 and £250,000. The average investment an angel investor makes initially is usually around £75,000. They will choose to invest in businesses with excellent business plans and the potential for a high return on investment. Business angels are picky when choosing businesses to invest in because of the high risk they take with the investment.

Why would a business angel be willing to invest in a high-risk new business endeavour? They are looking for financial gain at the end of the business relationship. Business angels receive a percentage of the equity of the business in return for their investment. This type of finance means that the business angel has a share of the ownership of the business. Sometimes they will retain some control over the way the business is run.

How will the money invested by a business angel be repaid? Often it is repaid through dividend payments when the business starts to receive income. Typically, the percentage the business angel receives is more than a traditional loan or other form of financing due to the high amount of risk involved. However, this high percentage is usually acceptable to the business owner because of the lack of other willing investors.

Business angels will want to have an exit strategy, should the business fail. When a new business approaches a business angel with a proposition and a request for financing, this exit strategy needs to be clearly presented. One example of an exit strategy would be a trade sale. The investor is repaid through the profit from the sale. Another way that a new business can give a potential business angel an exit strategy is to outline the procedures of a shareholder buyout. The business angel is looking to see that the business has a way to repay the investment, even if the business does not succeed.

Business angels often contribute more than just finances to a new business. They offer their advice and experience as well. While many new business owners may not like giving control of much of their business over to a business angel, the experience and expertise gained is extremely valuable to the new business entrepreneur. The business angel has accumulated wealth, and therefore has proven that he is able to succeed in business. This level of understanding is invaluable to the new business owner.

Business angels expect a high rate of return on their investment. Because of this cost, most businesses seek other forms of investment and start up capital before seeking the help of business angels. If you are beginning a new business and have exhausted all of your sources of capital, then an angel investor may be your best option. You may want to approach traditional lenders, friends, and family first before turning to a business angel, since these capital options cost you much less. If, however, you are at a point when you cannot find any other source of income for your business, then the time has come to turn to the help of a business angel!



By: Adrian Lawrence

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Business Angels for Small Businesses

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Businesses are many things. Some are profitable, some aren’t. Some involve single, store-based locations, while others are based off the Internet or even across an international network. Some have large staffs; others only have a few people. Some specialize in technology, some in produce, some in commerce – the variations are endless, but all these companies share one thing.

They all require a lot of money to get started. Most people don’t have even close to the amount of money it takes to start a small business, and so have to take out a loan or find funding from some outside source. The trick is to find the best source for your business. You always have a few options – whether that be by taking out a loan or seeking investors is up to you. When you’re looking for investors, you’ll come across the names of several venture capitalists, who invest their client’s money in startup projects.

Another option for the shrewd businessman or businesswoman, though, may be the kind of person known as a business angel. A business angel invests his or her own money in a company or business in order to buy part ownership. They will then wait for the company to make profits, and sell shares after your company has had a chance to grow. Sometimes, business angels will band together and pool their capital in order to invest in larger projects – if the company you wish to start is going to be expensive, you may wish to seek out one of these pools.

The next question is where you will find these business angels – and how you’ll let them know about your company. There are a few options here. For instance, if you already have a small business and are looking for investors to expand rather than to create something new, you may be able to find a business angel among your current customers – someone who knows and trusts you already, and has seen how successful you are and could be.

The Internet is another amazing tool when it comes to finding investors. Get online right now and log onto your favourite search engine. Type in “Business angels” and take a look at the listings that come up – you’ll be able to find investors all across the United Kingdom looking for all sorts of projects. Take a look at each, how much each is willing to spend, and whether that investor seems as if she or he would be interested in your company. If so, take down their name – once you’ve narrowed your choices down, you can start calling and deciding just who you want owning part of your company.

Banks and personal accountants often have contacts, as well. If you’re unable or unwilling to find business angels through the Internet, you can check in with your bank or with your accountant. They can look for you if you wish, or they may know some business angel investors personally and be willing to recommend one for you – remember, in this business as with so many others, it’s not what you know, but whom you know.

Remember, business angels are not venture capitalists. They aren’t working for stockholders the way a broker or investing firm does; rather, they’re spending their own money on things they believe in. As such, they will also be much more careful about what they decide to invest in. If you want a business angel investing in your business, you’re going to have to work hard to convince them. Come up with a good business plan and have some evidence you’ll make money, and you’ll go far every time.



By: Adrian Lawrence

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Business Angels

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It might seem perverse but in today’s current financial climate where interest rates are low but competition is fiercer than ever only the most financially astute will succeed. Venture Capitalists expectations have become far more realistic and inline with market conditions there has never been a better time to seek investment. The Government for its part is keen to foster the notion of a nation of entrepreneurs and the entrepreneurial spirit that is intrinsic with this nation, but entrepreneurs need to dare to be different, and make the leap of faith from dreamer to true entrepreneur. To have a great idea is simply not enough you need to have the drive and mindset to get your idea accepted and off the ground. A can do attitude and a fierce work ethic are what investors want to see from prospective partnerships.

I know this is very simplistic but a good business model really can come from a good SWOT analysis, you have to focus on what people actually want, successful enterprises will be able to deliver the product to market seamlessly in the most cost effective manner, ensuring both customer satisfaction and maintaining brand loyalty simultaneously.

The difference between a dreamer and an entrepreneur is the doing, making it happen and embracing risk is the preserve of the entrepreneur and that is the primary reason why we’re not all doing it.

If you are an entrepreneur in need of capital investment Business Angels has numerous large investors from around the globe all with substantial financial clout. Business Angels actively seek out investment opportunities in SME and business start-ups. Angels have resources set aside solely for the purpose of funding entrepreneurs and established companies alike, it could be that you are simply in need of a cash injection to take them to that next level. There are sites online that have online forms which you can submit your business ideas. It’s quick and simple and will only take a few minutes to complete. A lot of Business Angels sites have a members area where investors can view all the business ideas and get in touch with the businesses that they think they can help. Some companies will actually match your business with a venture capitalist or business angel depending on your need.

Most of these sites will allow you to register for free which will allow you to use any of their services including forums where you can ask the experts a question. These are valuable resource will allow you to gauge opinion, seek advice, confer with other uses and build up a significant network of influence. Why not benefit from the experience of others? Avoid start-up mistakes like an inappropriate location, marginal niche, derivative idea, poor investor management or fighting between founders by establishing clear strategic guidelines for the future ensuring that your not always on the back foot with tactical decision. Be Proactive and not Reactive!



By: Adrian Lawrence

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