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Struggling to Find Finance for Your New Business
Venture
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Are you struggling
to find finance for your new business, but you can't
see a way of getting the finance well then you
haven't heard of Business Angels and Venture
Capitalists have you!
You may have looked into bank loans, asked friends
and family for a loan or looked into getting a few
credit cards to pay for you to set your business up.
If these have all come up unsuccessful or not
possible then why not look into private investors
like Business Angels or Venture Capitalists.
Business Angels are usually from an entrepreneurial
background who knows what you're going through and
therefore can offer invaluable advice and the
finance you require if your business catches their
eye and you have a well planned and thorough
business plan in place for them to see. A business
plan will show them what your goals and objectives
are for now and in a few years, what will your
business do offer a service or sell a product, who
your target audience will be children, adults,
teenagers or the elderly or a mixture. It will also
show the prices and how much money you require to
start the business up and also the finance you
require for things such as a property, computers,
rent, other equipment and also staff wages if
necessary.
Business Angels usually offer around £10,000 to
£75,000 in finance, depending on what you require as
well as how well they think your business will do.
If they think your business is a success from the
start there more likely to offer you more in the way
of finance, as whatever they put into your business
they will get back and more. The more successful
your business is the more money they are likely to
get back. Business Angels may work in an Angel
Network or Angel Syndicate, this means angels will
group together and this way they can offer you more
in the way of finance, from £75,000 to £150,000.
Venture Capitalists are slightly different in the
way there are usually from an entrepreneurial
background like business angels and can offer around
the same finance from £10,000 to £75,000, but
instead of mainly taking a backseat on day to day
decisions and management decisions venture
capitalists like to have a director's role within
the company or be part of the management. Some
venture capitalists like to take a hands on approach
with their investment and be apart of the day to day
running and management decisions, and they usually
take a percentage share of the business to begin
with.
If you're looking to raise finance for your new
business venture whatever it may be and you don't
want to pay high interest rates from banks and other
sources of finance and your family and friends don't
have the financial backing you're looking for,
Business Angels and Venture Capitalists might be
your answer. They will be able to offer you the
finance you require at the time you require it if
you present them with a thorough business plan and
shows your drive and enthusiasm for your business to
take off.
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Jene Pedder is the Webmaster of Angelstartups who
can help you find a Business Angel or Venture
Capitalist.
http://www.angelstartups.com
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It's choice,
not chance,
that determines
your destiny.
Jean Nidetch |
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