What Are Business Angels, How Can They Help Me?
A business angel is a person who themselves have set-up their own business in the past and now have the finance and motivation to help other people do the same by them providing some finance backing to help a company that is struggling but has potential in the future but also a new business that wants to start-up.
Business Angels will only invest in a business if they think it will succeed and make a profit this may be over a year or more. They won’t only provide finance and time and effort but most also provide information and their know-how on how to make a business successful and other businesses that are in the same quote as them. With all this covered business angles do want a higher rate of return than maybe other kind of investors and stocks and bonds.
Many business angles are from an entrepuncial background and have begun at the bottom and worked there way up and they feel satisfaction and pride in being able to help someone else achieve their goals. But that’s not only why they do this but also to make some money for themselves as the business angels can make up to 400% back from their first financial investment as a stock market can only make 9%. There is only a special kind of person to become an angel, as they have to make a commitment to the business as they are investing there hard earned money. Everyone who has an idea wants to make it into a successful business; the business angel may have been in the same vote years ago and can see your motivation and drive.
A business angel can be found all over the UK they might even be in your village or town, but you won’t know until you start looking. The Internet is a good way to start by searching the World Wide Web for business angels and venture capitalists. When you do contact them state exactly what your product and or service is and why you want financial help. You will need to show them a well planned business plan which states over the following years how you want to progress and if you want to expand your products, services or take on staff etc. the list is endless but it all needs to be stated in your well presented well planned business plan. You need to clearly think about what you’re going to say when you actually meet the business angel as the meeting will be one of the most important in your life, it means you can secure finance for your business.
A business angel may invest from £25,000 to £100,000 but there are instances when business angels join together they may be friends and know each other and think the business is a good investment and make an angel group, which can invest from £250,000 to £500,000. From the business angels investment they want a good return and some angels may stick around helping for a few years financially and with advice helping their business succeed for the future.
