Who Are Business Angels?
Business Angels usually come from an entrepreneurial background and therefore know the troubles you may go through and that finance is one of the most important factors in any start-up business and especially in a business that is struggling financially. A Business Angel will usually only offer financial backing if they think your business stands a good chance of succeeding.
The amount of finance they offer you depends on the business plan you put forward. They will need to see every little detail of your business from who your suppliers are and how much they charge to how much you offer a product or service at. They will want to see all your ingoings and outgoings for the last year if your business is struggling. If its a new business venture youre trying to gain finance for, you will need a good plan showing the revenue of the business over the next few years as you see it.
A Business Angel can offer from 10,000 to 75,000 to help regenerate your business or get your business off the ground. Some Business Angels may be willing to work as an Angel Syndicate and can then offer from 100,000 to 250,000. The average amount a Business Angels invests in a company is around 75,000. All Business Angels want a good return on their investment and this is often done by their high percentage share of your business which they get back at a much higher price in a few years.
There is a difference between Business Angels and Venture Capitalists this is that Business Angels take less control of your business they dont usually want the bother of a directors or management job and would rather invest in your business and give you some advice if you need it. Due to this, their investment decisions are usually a lot quicker than Venture Capitalists.
Whoever you get investment from whether it be a bank, a loan company or a business angel you will need a well planned and thorough business plan. Your business plan will show what your intended goals are and any ideas you have for the future as well as the planned income of the business for the first few years. Every business plan should be regularly updated to keep up to date any changes with the business internally or externally and also any new pointers youve put in place.
Not only will you use your business plan to help secure business finance from a Business Angels but also it will help you run your business more effectively and efficiently. So why wait if youre looking to raise finance for your start-up or struggling business contact a Business Angel today for financial help and advice.