subject: Things you Must Know before taking Financial Assistance from Business Angel Investors [print this page] Things you Must Know before taking Financial Assistance from Business Angel Investors
Nowadays, it has become very hard to start a new venture and to take it to the top level in a very short period of time, as there is a huge competition in the market. And, to achieve the success in a short span, it requires a lot of money to put into the venture, along with extensive market knowledge and a very strong business plan with lots of dynamic strategies. However, all this could still be achieved, if you get the desired financial assistance from a prominent group or network of business angel investors. This is because, a well reputed and a experienced group of investors will not only provide you with adequate monetary resources, but also help by providing constant monitoring for your new business.
It is quite obvious that a large network of angel investors would have a long list of potential contacts, which can easily come in handy for your business too. However, in order to get all this, you can not rely on a normal business plan; therefore, it is a must to have a very strong venture plan before you proceed to get the approval from the business investors. And, to make a strong plan for your business, you must have thorough knowledge of industry related to your venture, like who are the major companies, what are their strategies, how many employees they have, how many and who are their clients etc.
Apart from all this, you also need to assess how much money is required initially for starting small business, and in how many phases you would expand it, and how much time will it take to recover the investment. Moreover, before you find angel investors to get the adequate funding for your venture, you must enquire about their market reputation and member information. Along with these, you should also lay emphasis on knowing maximum time limit for returning the money, how much interest rate they will charge, whether they will provide their contacts and monitoring assistance or not, and other such information.
If you will follow the above mentioned information about business angel investors, it would be very easy for you to impress them while presenting your business proposal in front of them. However, there is one more thing that you need to understand that incomplete data or knowledge can have adverse effect on the meeting. This is because in most of the investors group, the members are either the well experienced CEOs or are from the corporate family background, and each and every member is well aware of everything about the market, and the businesses.
