DOES MY BUSINESS HAVE TO BE ESTABLISHED TO GET AN INVESTOR?
If you’ve got a start-up business, you’ll probably be thinking about how to raise finance to get it off the ground. But many people are disheartened, thinking that before their business will be appealing to an investor, it will have to be established. This isn’t always the case.
A business categorically does not have to be established to get an investor. On the contrary, being a start-up can make the prospect even more appealing, especially to business angels. Angels thrive on risk, as its high-risk businesses that have the most potential for growth and profit. As long as you can offer this potential, you’ll be considered as a viable investment opportunity.
There are, however, times when this doesn’t apply. If you were thinking about approaching a venture capitalist with your business idea, you’d be wise to reconsider. Venture capitalists typically only invest in businesses that are already up and running with a proven track-record of success, so in this case, you would have to be established. But don’t let that put you off! Business angels can be just as valuable to your success, if not more so.
Because your company is so small, an angel investor will be able to give you personal attention, even more so because the money they’ve invested is their own. They’re motivated to make your business a success to ensure they get their return, and will offer far more support than they would otherwise.
This support is especially useful because, being successful entrepreneurs in their own right, they know what to do to make businesses work. This is obviously invaluable to any start-up, who may struggle without this expertise.
So, does your business have to be established to get an investor? Of course not! As long as you know where to look and the right people to approach, you can be offered just as much investment as anyone else.
About the Author:One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.
Article Source: ArticlesBase.com - DOES MY BUSINESS HAVE TO BE ESTABLISHED TO GET AN INVESTOR?