subject: How To Get Funding From Business Angels? Easy, Learn Top Secrets To Impress 'em! [print this page] Having an awesome idea is one thing, Getting Funding and seeing your business idea flourish is another thing entirely. If you are a budding entrepreneur with a really wonderful idea, there is a possibility that you will fail.miserably. According to statistics, a large number of businesses that are owned and run completely by the entrepreneur end up taking a nose dive in their first year - sad, but true.
However, business ventures where Business Angels or (angel investors as they are popularly called) is involved, the business is 6 times more likely to become successful. Now, this is the part where you ask "why?!"
It is no secret that a typical entrepreneur is really great at coming up with really brilliant business ideas and does not know diddly-squat about executing the business ideas into lean, mean, money making machines! As a matter of fact a lot of new entrepreneurs are clueless about the business aspect of things. They maybe very creative and have a strong passion for the business that they plan to start up, some believe that the "wonderfulness" of the business is enough to drive the projects towards profitability and will make them the next Bill Gates (one of the world's richest man). Getting funding is one of the important aspects of starting a business, but knowing how to make the business run smoothly and profitably is THE MOST important part.
Business angels are more than just a ticket to getting funding for your business, they are highly experienced business experts who bring a wealth of experience, contacts and knowledge to the table. Unlike venture capitalists that are simply searching for really big investment opportunities, typical business angels invest smaller sums of money such as 30,000 to 100,000 dollars. Prior to investing funds to your business, a business angel will assess the idea very carefully and will need to be CONVINCED on different scores. It really pays the angel to be very pessimistic and instead of papering over the cracks, he or she will look at the very best ways to fill up the cracks. He or she will bring the knowledge, skill and experience of running a business such as:
* Handling attorneys and accountants
* Getting permit
* Securing intellectual property
* Hiring staff
* Negotiating contracts
* Managing finances etc
The aforementioned (and more) underpins any good business.
The business angels' contacts are pretty useful; their network of contacts most times makes the difference between the business' success or failure.
Getting funding to start your dream business is not particularly the easiest task on the planet. First you will need to convince the right business angel to invest in your idea and you will have a really good chance of succeeding. Even if you can come up with the funds and retain a hundred percent equity, it still makes great sense to involve business angels - it's in your own best interest!
There are websites where you can learn the best ways to impress and convince business angels to invest in your business. Think about it, would you prefer to own 100 percent of a 100,000 dollar company or 50 percent of a 500,000 dollar company?
