You know your business concept has all the elements to become a very successful. You just need the money to get things rolling and you are well on your way to becoming an entrepreneurial sensation. But then again, money is hard to come by these days. Even with the recent recovery of the US economy and things looking good in the small business sector, many banks and financing institutions are still wary of approving loans for small business start-ups. If you have exhausted all your options and still come up with nothing, then maybe it’s high time that you learn how to find angel investors.
Angel investors, also known as business angels, are people who are willing to shell out the much-needed funds to get a business concept into reality. In almost all cases, a business angel is someone who is wealthy and established individual who has shown great interest in the industry you are wishing to enter. Since an angel investor is willing to risk much money on a business grant concept that has yet to materialize, they require so much from the entrepreneur as well, like convertible debt or ownership equity, in exchange for the funds.
Another thing that must be put into consideration is that angel investors would want a significant portion of control once the company gets off the ground. This is a fact when it comes to angel investing. If you are a business owner who does not want to share the steering wheel of the enterprise, then you better look somewhere else for the funds you need. However, if you welcome the opportunity to learn from an experienced business figure and allow him or her to take the reins from time to time, then angel investing is probably just for you.
If you are decided to have an angel investor fund your enterprise, then here is a short guide on how to find angel investors:
Always start within your area., 150-mile radius to be precise. Call your attorney. Lawyers know who has money. Get in touch with local business clubs and ask the officials to point you in the right direction. Contact your local SBA office and see if the people there know anything of significance. Business colleges and universities are also great spots. You can get a lot of information from teachers and school officials.
Bear in mind that angel investors are not people who would readily and immediately send you checks for your start-up. It is best that you seek out angel investors that are interested or involved in the industry that you desire to join and provide them with a very sound and workable business plan as well as realistic projections to keep expectations from going over the brim.