Business Angels and your start-up Finance

Business angels fall into the category of equity finance. They are the most popular form of equity financing and can really do wonders for your business venture.

When you start your own business is the most important thing to be solved first of all it is your start-up business finance. You will need funding for your business, even before they begin trading. No matter what type of activities you plan to enter, if you're selling a product or service is necessary to obtain financing before you open your business to trading.

Financing for your business can come in many forms, ensuring that you choose what is best for your business is the hard part so here are some useful tips. Most of the new fail because of improper funding with many make the mistake to ask your bank to finance only to discover that the bank refuses to give them the necessary capital and many others find out the hard way that no can keep up with repayments, which ends with them losing not only their business venture, but usually their home that they thought was a good idea at the time of use as a resource for their bank loan.

You're probably thinking now left 'what should I do?' well lucky for you there are people waiting to give you their money for your business start-up funding that you wait, it must not return! Who are these nice people that I'm crying, business angels, of course. Business angels are high net worth, wealthy individual who has already made their fortune through other business ventures. They are often retired people who invest their skills and capital in new enterprises and developing. Business angels invest money in your business that you do not have to pay in exchange for a share of their business growth.

Business angels typically seek investments that will give them ten times more than their original investment back within five years of your company to be active. They invest their own funds and typically invest between £ 10,000 and £ 750,000.

As well as cash, business angels can offer years of experience in the business world. Although some prefer to become a sleeping partner, others will be actively involved in your business write a marketing plan to take the company through a stock market listing.

Business angels invest all industries and most of the stages of business development. In general tend to look for the following within your company as the basis of whether to go ahead with an investment:

or know-how and track record of management

o The competitive advantage of companies or a unique selling point

o The characteristics and potential for market growth

The compatibility between the proposal and management, business and their expertise and investment preferences

If you decide to choose the help of an angel in your company start-up funding is necessary to verify that the angel that you choose is right for your business needs. You should choose a business angel that best suits your business needs.

It 's also important to keep in mind that business angels tend to invest mostly locally and within a specialized field ....