subject: Take Your Company In A Different Direction With The Assistance Of Investors [print this page] Without a good business plan you're not going to get to face-to-face with the investor to make your pitch. Many would-be business developers then find that approaching an investment source costs money too. A broker should only charge for success - a commission at settlement of your financing.Be wary, and check everything. Since the Global Financial Crisis a huge amount of capital has been destroyed - severely limiting the ability of banks and other financial institutions to fund investment. Be just as wary of the 'famous names' as you are of those you've never heard of.. The company you approach may have been an active investor in the past, but check on how much they are currently investing...However, an investor may also want to be paid for you lodging an application. This is valid - because they need to know who you are and whether you're 'credit-worthy. Investor due diligence costs you money - and it can be quite a lot of money. If the investor doesn't live in your country, they shall want to have their people travelling to make on-site inspections, face-to-face interviews with everyone associated with the project. They have to. It's unavoidable. If you've been working with good people, who can deliver, then they shall be working 12-16 hours a day on the due diligence, and avoiding partying and girls.
Though angel funding is viewed by many as primarily being start-up funding, the fact is there is total freedom to seek and structure financing in any way that meets the needs of the angel investors and your business. Using what you have learned in the past, including through mistakes made, you can reinvent your business as if it's a new enterprise and come out stronger than ever.It's also a fact that businesses need to reinvent themselves periodically. The reinvention often comes on the heels of experience, though. People change, the economy changes, the marketplace changes, customer needs change - all good reasons to reinvent your business and rev up revenues once again. Experience can teach entrepreneurs that the business is solid but needs a new approach to penetrate the market, a new service or product to round out its offerings, or perhaps a new look or refined brand image that successfully appeals to the niche market.
It's a pity that so many businesses with great potential end up going out of business simply because the owners refused to adapt. This became abundantly clear as the recession, and now the slow recovery, unfolded. The economy shifts periodically and the successful business is able to shift with it. Stubbornly refusing to change a brand that has become outdated is not a good business practice even if you have spent years building it. A brand won't be useful if the business fails because you didn't listen to the marketplace. The core competencies of your business serve as the starting point for reinvention. They represent business strengths on which new products and services can be developed. Angel investors can fund the innovation that breathes new life into your business whether you want to expand produce or service offerings, increase market share or re-brand. Show angel investors the value you have to offer customers and they will have lots of reasons to support your efforts with business funding.
