Struggling to Find Finance for Your New Business Venture
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.
Jene Pedder is the Webmaster of Angelstartups who can help you find a Business Angel or Venture Capitalist. http://www.angelstartups.com