Finding a trusted source such as a business advisor, Angel investor, or venture capitalist that won’t try to rip you off can be a bit of a challenge. There are times in most businesses when you may need some outside help. Business angels could in many cases also be classed as troubleshooters. They act as impartial observers and advisers because they will never be as emotionally tied to the business as you. Letting go at the right time is something many people in business find very hard.
Good business advisors can connect you to angel investors and venture capitalists. It’s these individuals who use their own private wealth to invest in businesses that they think are going places. Often the sticking point is not money but rather better guidance that’s needed. In a tough financial climate many business owners find it difficult to persuade banks to loan them more money.
However, it’s not just about lending money. Angels are more than that. They will have commercial contacts that you may not have access to or know about. Business angels are generally more open to taking a risk if they think the idea you have is viable, but may need some work in set up, or management, or other aspects.
Some Quick Facts
1. Business Angels can help with funding, credit control, liquidity, research & development, marketing, production, delivery, product support and customer relationship management, to name a few.
2. The genuine business Angel Investor or Dragons Den type investors will seek a minority position – they’re investing in you and your team to do the job, day-to-day, and for your long term mutual benefit together in a valued and respectable partnership. They will not try and screw you to the ground with a bad deal for you.
3. Angel Investors take a holistic approach, by assessing the whole business and helping you move forward. This could be funding for a new idea, restructuring existing systems, streamlining, and many more issues. If your business has realistic potential, they provide the support to help you succeed.
4. Angel investors will often join together to make investments work better for all.
Business angel advisers are not beholden to banks, they can make their own decisions about whether the investment in your business is a good one or not. They will often take shares in the business in return for providing equity finance. In this way, they become part of the business, sometimes for short periods only.
Angel investors do vary in approach, some will be more hands on than others, but this is always agreed with the existing management structure in advance of working together. Your own expertise and knowledge in running the business will be very important to them. Many businesses benefit from the hands on approach of someone experienced who can encourage them to view things from an objective viewpoint.
Skills Matter
Having access to skills that you don’t possess can be a very powerful driver for any business that wants to move to the next level and achieve commercial success. Allowing business angel investors to invest in your business can be both enjoyable and rewarding. Of course there will always be risks, as with all financial investments, but then some would say there are greater risks just by lending from a bank.
Because they have invested their own time and money, business angels have a good reason to help you succeed, banks don’t.
About The Author
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Janet Trowell Discountletting.co.uk Join me on Twitter LinkedIn