Who is a business angel and how to find him?
As a person there is a guardian angel, so in business there are business angels. In the business sphere, angels are private investors who invest in young or newly created enterprises.
To attract such an investor you need luck, since not all newcomers in business can count on this. Investments from angels — investors are carried out only in those enterprises where absolutely new and invasive projects are applied, and entrepreneurs have a chance to receive investments only in the event of bringing their innovative proposals to the market.
The attractiveness of cooperation with business angels
The investment deposit is beneficial for both parties, since the entrepreneur has the opportunity to start and develop his entrepreneurial activities, and the investor plans to receive additional income from the invested investments, and also to return the capital in the future.
Business investment by angels is carried out with own funds and basically in one enterprise. The advantages of working with such investors include:
- The main advantage of obtaining investment from business angels is that the latter are interested in making a profit, and not in the future control over the enterprise.
- The infusion of capital is properly carried out by several investors.
- In the case of a positive development of the enterprise, investors — angels can still invest money for greater development. The main point is the correct planning of the project, then the investor will certainly support the entrepreneur.
- The timeframe for which business angels invest financial resources ranges from 3 to 5 years on average. This is a fairly acceptable and realistic time frame, because with proper business planning and well-built enterprise work, the payback will come sooner than expected.
Search for business angels
To attract an investor to inject capital into a young enterprise, the entrepreneur needs to look for himself. Each potential investor needs to submit a project, lead calculations, tell the essence of the idea, its novelty and benefits. Before investor search, it is necessary to try other ways out of the situation if investments are needed:
- If you have a business idea, you first need to try to implement it by yourself;
- In the event that you can not do without investing in search of an investor, you need to determine the required amount. It should also be competently, to draw up a business plan, to provide approximate forecasts of the project payback, the timing of the realization of the manufactured products;
- The initial search for investors should be conducted among friends;
- In the case of difficulties in finding an investor, you need to look for alternative solutions;
- In the case of the appearance of a business angel, a good business plan will play a role, and the activity of the enterprise will show a positive dynamics of growth.
- When looking for investment capital, it is necessary to consider different proposals, rather than focusing only on receiving money in any possible way.
- Most investors have good experience in investing in projects of this kind, so to attract them to your project you need to interest and show your enthusiasm and potential. In the event that the investor believes in the entrepreneur and his business plan, in addition to the investment, he will be able to give some more valuable advice and recommendations on the organization of work.