How do private business angels work?
If you have a great business plan at hand but lack the funding required for the initial investment, then it is a great idea to approach a private business angel for help. Business angels will take care of the initial investment, in exchange for the ownership of a percentage of your business. You must be wondering who these people are. Well, business angels are successful business owners who are running a number of successful businesses of their own. They invest in new businesses being started by aspiring entrepreneurs in exchange for the ownership of anything between 5% and 25% of the business. They claim whatever profits are made form their share of the business.
How do these angels work?
One thing is clear; business angels are not philanthropists. They are veteran businessmen looking to boost their earnings by investing in successful business startups. Since profit is the key here, you probably cannot just walk into an angel’s office and walk out with a signed agreement in your hand.
Studies show that many angel investors prefer putting their money in businesses that are located close to either their home or office. That way, they can often visit the place and check how well the business is being run. So, try to locate an angel investor who lives close to your business facility. Online websites like entrepreneurinvestornetwork.com.au can help you locate great investors in Australia for your new business.
Business angels will channel their already existing client/ customer base towards your business in order to boost the profits. So make sure you provide quality products/ services to the customers. Client/ customer satisfaction will be the key towards success of your business venture.
Provide realistic estimates of your profit to the business angel when you are asking for investment. Angel investors are very strict about profit margins, and you may lose their trust completely if you fail to live up to your end of the agreement.
Keep these points in mind when you look for private business angels to fund your new business venture. Angel investors can help you start off your new business on the right track. Just be sure to play your cards right.
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.
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