Business Angels are people who like to invest in struggling businesses which they think have a good chance of making it in the business with some financial backing as well as businesses that are just starting up. These businesses will need help financially to start-up with the purchase of stock and equipment.
Business Angels usually come from an entrepreneurial background and therefore know the troubles you may go through and that finance is one of the most important factors in any start-up business and especially in a business that is struggling financially. A Business Angel will usually only offer financial backing if they think your business stands a good chance of succeeding.
The amount of finance they offer you depends on the business plan you put forward. They will need to see every little detail of your business from who your suppliers are and how much they charge to how much you offer a product or service at. They will want to see all your ingoing’s and outgoings for the last year if your business is struggling. If it’s a new business venture you’re trying to gain finance for, you will need a good plan showing the revenue of the business over the next few years as you see it.
A Business Angel can offer from £10,000 to £75,000 to help regenerate your business or get your business off the ground. Some Business Angels may be willing to work as an Angel Syndicate and can then offer from £100,000 to £250,000. The average amount a Business Angels invests in a company is around £75,000. All Business Angels want a good return on their investment and this is often done by their high percentage share of your business which they get back at a much higher price in a few years.
There is a difference between Business Angels and Venture Capitalists this is that Business Angels take less control of your business they don’t usually want the bother of a director’s or management job and would rather invest in your business and give you some advice if you need it. Due to this, their investment decisions are usually a lot quicker than Venture Capitalists.
Whoever you get investment from whether it be a bank, a loan company or a business angel you will need a well planned and thorough business plan. Your business plan will show what your intended goals are and any ideas you have for the future as well as the planned income of the business for the first few years. Every business plan should be regularly updated to keep up to date any changes with the business internally or externally and also any new pointers you’ve put in place.
Not only will you use your business plan to help secure business finance from a Business Angels but also it will help you run your business more effectively and efficiently. So why wait if you’re looking to raise finance for your start-up or struggling business contact a Business Angel today for financial help and advice.
Jene Pedder is the Webmaster of Angelstartups who are here to help you find a Business Angel.
Monday, 17 December 2007
Business Angels Vs Venture Capitalists
Have you these amazing ideas which you’re sure you can put into practise and make a living out of your ideas. If so you’re more than likely looking into financial help to put these ideas into practise. You may think bank loans, credit cards and loans off family and friends are the only options but Business Angels and Venture Capitalists are also a good option to consider.
Business Angels what are they you may ask, they often work as individuals who themselves are entrepreneurs and have made their dream come true in whatever business sector they chose. They have now have the experience and financial backing to help other entrepreneurs to start their own business just like themselves years ago.
Venture Capitalists are very similar to Business Angels they are often from an entrepreneur background have made a successful business and now would like to give back to other entrepreneurs and help them with finance for their new start-up business.
So you’re asking what is the difference between them both, they are:
Business Angels – Give you the financial help you need when you need it, and invest their own money in your business. If a business angel works within an angel network the angels will pool together with their investment as well as sharing research they each do. Angels understand the needs of a new business as they have been there themselves and therefore they not only offer financial help but they can offer good advice when no one else will.
Venture Capitalists – Give you the financial help you require when you need it but uses pooled money the venture capitalist and others have in a professionally managed fund. Venture Capitalists like to take an active role in the business they are investing usually being a director or on the management board of the business.
So if you’re looking for some financial help for your new start-up business or even your struggling business you don’t just have the options of:
• Family
• Friends
• Banks
• Loans
• Credit Cards
You have the option of using a Business Angel or a Venture Capitalist. Which ever one you decide to use the only way you’re going to show your serious in wanting their help is to have a well planned and thorough business plan.
A business plan will not only be used to show your investor what you planned ideas are and your predicted returns in the next few years will be it will also be used for you to run your business well. Your business plan will show others what your initial goals were and if you succeeded in these as well as any risks you planned for and if any of these actually occurred and if they did, did you cope ok with rectifying the risk.
Your business plan shouldn’t just be placed in a drawer and forgotten about it should be regularly updated. Your business will continue to change and usually out of your control and you should reflect on these changes within your business plan. You should have contingency plans to deal with any external influences that would affect your business and the way in which you run it.
You should now be a little wiser of the facts of the difference between Business Angels and Venture Capitalists and how they can help you.
Jene Pedder is the Webmaster of Angelstartups who specialise in helping you find a Business Angel or Venture Capitalist.
Business Angels what are they you may ask, they often work as individuals who themselves are entrepreneurs and have made their dream come true in whatever business sector they chose. They have now have the experience and financial backing to help other entrepreneurs to start their own business just like themselves years ago.
Venture Capitalists are very similar to Business Angels they are often from an entrepreneur background have made a successful business and now would like to give back to other entrepreneurs and help them with finance for their new start-up business.
So you’re asking what is the difference between them both, they are:
Business Angels – Give you the financial help you need when you need it, and invest their own money in your business. If a business angel works within an angel network the angels will pool together with their investment as well as sharing research they each do. Angels understand the needs of a new business as they have been there themselves and therefore they not only offer financial help but they can offer good advice when no one else will.
Venture Capitalists – Give you the financial help you require when you need it but uses pooled money the venture capitalist and others have in a professionally managed fund. Venture Capitalists like to take an active role in the business they are investing usually being a director or on the management board of the business.
So if you’re looking for some financial help for your new start-up business or even your struggling business you don’t just have the options of:
• Family
• Friends
• Banks
• Loans
• Credit Cards
You have the option of using a Business Angel or a Venture Capitalist. Which ever one you decide to use the only way you’re going to show your serious in wanting their help is to have a well planned and thorough business plan.
A business plan will not only be used to show your investor what you planned ideas are and your predicted returns in the next few years will be it will also be used for you to run your business well. Your business plan will show others what your initial goals were and if you succeeded in these as well as any risks you planned for and if any of these actually occurred and if they did, did you cope ok with rectifying the risk.
Your business plan shouldn’t just be placed in a drawer and forgotten about it should be regularly updated. Your business will continue to change and usually out of your control and you should reflect on these changes within your business plan. You should have contingency plans to deal with any external influences that would affect your business and the way in which you run it.
You should now be a little wiser of the facts of the difference between Business Angels and Venture Capitalists and how they can help you.
Jene Pedder is the Webmaster of Angelstartups who specialise in helping you find a Business Angel or Venture Capitalist.
Wednesday, 21 November 2007
What are Business Angels, how can they help me?
A business angel is a person who themselves have set-up their own business in the past and now have the finance and motivation to help other people do the same by them providing some finance backing to help a company that is struggling but has potential in the future but also a new business that wants to start-up.
Business Angels will only invest in a business if they think it will succeed and make a profit this may be over a year or more. They won’t only provide finance and time and effort but most also provide information and their know-how on how to make a business successful and other businesses that are in the same quote as them. With all this covered business angles do want a higher rate of return than maybe other kind of investors and stocks and bonds.
Many business angles are from an entrepuncial background and have begun at the bottom and worked there way up and they feel satisfaction and pride in being able to help someone else achieve their goals. But that’s not only why they do this but also to make some money for themselves as the business angels can make up to 400% back from their first financial investment as a stock market can only make 9%. There is only a special kind of person to become an angel, as they have to make a commitment to the business as they are investing there hard earned money. Everyone who has an idea wants to make it into a successful business; the business angel may have been in the same vote years ago and can see your motivation and drive.
A business angel can be found all over the UK they might even be in your village or town, but you won’t know until you start looking. The Internet is a good way to start by searching the World Wide Web for business angels and venture capitalists. When you do contact them state exactly what your product and or service is and why you want financial help. You will need to show them a well planned business plan which states over the following years how you want to progress and if you want to expand your products, services or take on staff etc. the list is endless but it all needs to be stated in your well presented well planned business plan. You need to clearly think about what you’re going to say when you actually meet the business angel as the meeting will be one of the most important in your life, it means you can secure finance for your business.
A business angel may invest from £25,000 to £100,000 but there are instances when business angels join together they may be friends and know each other and think the business is a good investment and make an angel group, which can invest from £250,000 to £500,000. From the business angels investment they want a good return and some angels may stick around helping for a few years financially and with advice helping their business succeed for the future.
Jene is the Webmaster of Angelstartups who can help you find a Business Angel .
Business Angels will only invest in a business if they think it will succeed and make a profit this may be over a year or more. They won’t only provide finance and time and effort but most also provide information and their know-how on how to make a business successful and other businesses that are in the same quote as them. With all this covered business angles do want a higher rate of return than maybe other kind of investors and stocks and bonds.
Many business angles are from an entrepuncial background and have begun at the bottom and worked there way up and they feel satisfaction and pride in being able to help someone else achieve their goals. But that’s not only why they do this but also to make some money for themselves as the business angels can make up to 400% back from their first financial investment as a stock market can only make 9%. There is only a special kind of person to become an angel, as they have to make a commitment to the business as they are investing there hard earned money. Everyone who has an idea wants to make it into a successful business; the business angel may have been in the same vote years ago and can see your motivation and drive.
A business angel can be found all over the UK they might even be in your village or town, but you won’t know until you start looking. The Internet is a good way to start by searching the World Wide Web for business angels and venture capitalists. When you do contact them state exactly what your product and or service is and why you want financial help. You will need to show them a well planned business plan which states over the following years how you want to progress and if you want to expand your products, services or take on staff etc. the list is endless but it all needs to be stated in your well presented well planned business plan. You need to clearly think about what you’re going to say when you actually meet the business angel as the meeting will be one of the most important in your life, it means you can secure finance for your business.
A business angel may invest from £25,000 to £100,000 but there are instances when business angels join together they may be friends and know each other and think the business is a good investment and make an angel group, which can invest from £250,000 to £500,000. From the business angels investment they want a good return and some angels may stick around helping for a few years financially and with advice helping their business succeed for the future.
Jene is the Webmaster of Angelstartups who can help you find a Business Angel .
I want to start my own Restaurant Business but what finance options do I have?
So you want to start your own restaurant business but your worried you can’t raise the finance you need to set your business up, if so this article is for you. I will cover the different options that you may want to think about where you can get finance for your new restaurant business, the following are: -
· Your friends and family – you may think this is the best option if they have the finance available for you, but you have to remember they will only have a certain amount of money available and proberly wouldn’t be able to give you more if you ran into trouble and also you may feel bad not being able to repay them as quickly as you thought you might be able to, as making a profit in a business can take a good year or even more. You will also have to discuss what interest you would give them, all this may cause problems with your relationships with the person or persons is it worth it, give it a thought.
· Your savings – if you have a good amount of savings you may be able to use them for your new restaurant business, it depends on the amount you have saved. This amount may run out quickly and if it does you would have to have a plan b in which you could get finance from elsewhere.
· Credit Cards – they offer you money to buy items but if you wanted cash from these they usually charge a daily interest rate for this. Credit cards also have a maximum limit on these depending on your credit history this might be only £3,500 and this wouldn’t get you far in setting up your business so you would have to take out more than one card, but also you have to pay a minimum amount every month and when your setting your business up and have no income coming up you may not be able to afford the minimum payments every month.
· Home Equity – using your home as equity can be a very risky, what happens if your business doesn’t work out the way you think it would and you couldn’t pay bills etc. your house may be taken away from you leaving you with no house to live in, you need to seriously think this one through is it worth the risk?
· Bank Loans – you may be able to take out a bank loan if you have a good credit history, the amount you may be given is up to this and therefore it could be a few thousand pounds but it could be a lot more like fifty thousands pounds. Interest would be calculated every month and it depends on the company on how high this may be.
· Angels Investors – business angels can give you from twenty five thousand to up to two hundred thousand pounds depending on how many angels group together if this is possible for your business. The angel or angels will provide financial backing for you at the correct time and will give you advice but won’t be involved in the running of the restaurant on a daily basis. Be prepared as they will want a good stake of the company so they can get the money back they invested and more, but they can be very helpful as they may have done the same or similar to you only a few years ago and made a success of their business enabling them to help others out.
· Venture Capitalists – they provide financial backing for your new restaurant business but also help you sort out how to run the restaurant and help make important decisions etc. They will also want a good return for their investment like the business angels.
All of the above are options available to most people and I’m sure whatever circumstances you’re in you will find appropriate funding for your restaurant business.
Jene is the Webmaster of Angelstartups who help provide funding for a Restaurant Business.
· Your friends and family – you may think this is the best option if they have the finance available for you, but you have to remember they will only have a certain amount of money available and proberly wouldn’t be able to give you more if you ran into trouble and also you may feel bad not being able to repay them as quickly as you thought you might be able to, as making a profit in a business can take a good year or even more. You will also have to discuss what interest you would give them, all this may cause problems with your relationships with the person or persons is it worth it, give it a thought.
· Your savings – if you have a good amount of savings you may be able to use them for your new restaurant business, it depends on the amount you have saved. This amount may run out quickly and if it does you would have to have a plan b in which you could get finance from elsewhere.
· Credit Cards – they offer you money to buy items but if you wanted cash from these they usually charge a daily interest rate for this. Credit cards also have a maximum limit on these depending on your credit history this might be only £3,500 and this wouldn’t get you far in setting up your business so you would have to take out more than one card, but also you have to pay a minimum amount every month and when your setting your business up and have no income coming up you may not be able to afford the minimum payments every month.
· Home Equity – using your home as equity can be a very risky, what happens if your business doesn’t work out the way you think it would and you couldn’t pay bills etc. your house may be taken away from you leaving you with no house to live in, you need to seriously think this one through is it worth the risk?
· Bank Loans – you may be able to take out a bank loan if you have a good credit history, the amount you may be given is up to this and therefore it could be a few thousand pounds but it could be a lot more like fifty thousands pounds. Interest would be calculated every month and it depends on the company on how high this may be.
· Angels Investors – business angels can give you from twenty five thousand to up to two hundred thousand pounds depending on how many angels group together if this is possible for your business. The angel or angels will provide financial backing for you at the correct time and will give you advice but won’t be involved in the running of the restaurant on a daily basis. Be prepared as they will want a good stake of the company so they can get the money back they invested and more, but they can be very helpful as they may have done the same or similar to you only a few years ago and made a success of their business enabling them to help others out.
· Venture Capitalists – they provide financial backing for your new restaurant business but also help you sort out how to run the restaurant and help make important decisions etc. They will also want a good return for their investment like the business angels.
All of the above are options available to most people and I’m sure whatever circumstances you’re in you will find appropriate funding for your restaurant business.
Jene is the Webmaster of Angelstartups who help provide funding for a Restaurant Business.
Tuesday, 13 November 2007
Debt Vs Equity Funding
So you’ve just sorted all your ideas, hopes, predictions and forecasts out and turned them into your business plan. You’re now ready and armed to pursue some business funding. So what business funding is available to you?
There are two main categories that you need to know about when it comes to business funding; Debt Funding and Equity Funding. Both of these finance options have their advantages and disadvantages; making it easier to find the one that fits your business in the best ways.
The term debt funding refers to money that it borrowed and has to be repaid over a period of time, this is normally re-paid with interest. This debt funding can either be short term or long term. In a short term sense the full amount to be repaid is done so within a year. In a long term sense the repayments will go on for over a year. With debt funding your only obligation to your lender is to pay back your loan. However in the case of smaller businesses guarantees will probably be needed; making commercial debt funding almost the same as personal debt funding. Debt funding comes from resources such as banks and traditional lenders. With debt funding you will have to make re-payments monthly, which will include interest.
The term equity funding is the exchange of money for a share of business. This allows you to obtain funds for your business without incurring any debt. Selling equity means taking on investors. Many small businesses raise equity by bringing in investors to make their business succeed and get a return on investment. The two main types of equity funding are business angels and venture capitalists.
The advantages of Debt Funding are:
• Don’t have to give up ownership/future profits of your business. Your lender has no control of the running of your business
• Using borrowed money to get your business assets will allow you to keep your business profit in the company meaning you can use this profit to pay a return to owners of the company.
• Interest is tax deductible
The disadvantages of Debt Funding are:
• Too much debt may impair your credit rating
• Use profit to pay back debt means if you have a lot of debt all your profit will be used to repay it, leaving nothing to show for your hard work
• Must have sufficient cash flow in your business in order to repay loans
• The riskier the loan the higher the interest rate
• Debt funding can require collateral to secure your loan, which will be seized if you can’t repay your debt.
The advantages of Equity Funding are:
• You do not have to pay back your investors even if your company goes bankrupt
• Business assets do not have to be pledged as collateral to obtain equity
• Businesses with sufficient equity will look better to lenders, investors, etc
• Your business will have more cash available because it will not have to make debt payments
Disadvantages of Equity Funding are:
• You will have to relinquish ownership and a share of your businesses profit to other investors
• Other owners may have different ideas than yours on how businesses should be run
• Payments to investors in C-corporations are not tax deductible
Angel Start-ups, specialists in Business Funding
There are two main categories that you need to know about when it comes to business funding; Debt Funding and Equity Funding. Both of these finance options have their advantages and disadvantages; making it easier to find the one that fits your business in the best ways.
The term debt funding refers to money that it borrowed and has to be repaid over a period of time, this is normally re-paid with interest. This debt funding can either be short term or long term. In a short term sense the full amount to be repaid is done so within a year. In a long term sense the repayments will go on for over a year. With debt funding your only obligation to your lender is to pay back your loan. However in the case of smaller businesses guarantees will probably be needed; making commercial debt funding almost the same as personal debt funding. Debt funding comes from resources such as banks and traditional lenders. With debt funding you will have to make re-payments monthly, which will include interest.
The term equity funding is the exchange of money for a share of business. This allows you to obtain funds for your business without incurring any debt. Selling equity means taking on investors. Many small businesses raise equity by bringing in investors to make their business succeed and get a return on investment. The two main types of equity funding are business angels and venture capitalists.
The advantages of Debt Funding are:
• Don’t have to give up ownership/future profits of your business. Your lender has no control of the running of your business
• Using borrowed money to get your business assets will allow you to keep your business profit in the company meaning you can use this profit to pay a return to owners of the company.
• Interest is tax deductible
The disadvantages of Debt Funding are:
• Too much debt may impair your credit rating
• Use profit to pay back debt means if you have a lot of debt all your profit will be used to repay it, leaving nothing to show for your hard work
• Must have sufficient cash flow in your business in order to repay loans
• The riskier the loan the higher the interest rate
• Debt funding can require collateral to secure your loan, which will be seized if you can’t repay your debt.
The advantages of Equity Funding are:
• You do not have to pay back your investors even if your company goes bankrupt
• Business assets do not have to be pledged as collateral to obtain equity
• Businesses with sufficient equity will look better to lenders, investors, etc
• Your business will have more cash available because it will not have to make debt payments
Disadvantages of Equity Funding are:
• You will have to relinquish ownership and a share of your businesses profit to other investors
• Other owners may have different ideas than yours on how businesses should be run
• Payments to investors in C-corporations are not tax deductible
Angel Start-ups, specialists in Business Funding
How to fund your business
As the saying goes ‘it takes money to make money.’ This is especially true when it comes to business funding. Business funding is getting the cash to get your business off the ground, which can often be a challenge. The traditional route for getting business funding is going to your bank. Going to your bank, however won’t get you far as banks do not like lending money to start-up businesses who have no history/assets.
There are several ways in which you can fund your business where you become your own bank, giving you total control over your money, the very control you wanted in the first place:
• Part time job
• Life insurance policy
• Family/friends
• Credit cards
By taking a part time job you can use the funds from it for your new business whilst still working your normal job and sorting out your new business venture. You have to ask yourself however if this is realistic; if you have the energy to take on a third job. Could you work a 60-80 hour week? You would be risking burn out and would more than likely end up hurting your health and family relationships due to stress.
You may also be thinking how can a life insurance policy help me while I’m still alive? The answer is simple you can put your life insurance policy to work while your still around as, what most people don’t realise is that you can borrow against the cash value of a life insurance policy and pay it back on a flexible rate, which is on your terms.
Bootstrapping is the term given when you start your business with no outside money. The way this works is you use personal savings and adjust your living allowance so that the start-up costs of your new business are taken care of. The advantage of funding your business in this way is that you are completely independent in how you run your business. The disadvantage however is that your business could end up being under funded as there is nothing to support it. Also when people use their own money to fund their business they tend not to write a business plan. Not having this business plan increases the chance of failure due to the fact the business will not be well researched and analysed and there will be fewer opportunities for feedback.
It is highly important that you find the right funding for your business. You must be selective and smart or your dream business could turn into your worst nightmare, you should think about your long term personal business goals and the type of business you’re planning.
There two main categories of funding; debt and equity.
Debt Funding
You borrow money and must pay it back with interest within a certain timeframe. Debt funding sources can be from banks, finance companies, credit unions, credit card companies and private corporations.
Equity Funding
You raise start-up finance for your business by selling a portion of ownership in your company. Selling equity means taking on investors, many small businesses raise equity by bringing in investors to make their business succeed and to get a return on investment. The two main types of equity funding are business angels and venture capitalists.
Angel Start-ups, home of all your business funding needs
There are several ways in which you can fund your business where you become your own bank, giving you total control over your money, the very control you wanted in the first place:
• Part time job
• Life insurance policy
• Family/friends
• Credit cards
By taking a part time job you can use the funds from it for your new business whilst still working your normal job and sorting out your new business venture. You have to ask yourself however if this is realistic; if you have the energy to take on a third job. Could you work a 60-80 hour week? You would be risking burn out and would more than likely end up hurting your health and family relationships due to stress.
You may also be thinking how can a life insurance policy help me while I’m still alive? The answer is simple you can put your life insurance policy to work while your still around as, what most people don’t realise is that you can borrow against the cash value of a life insurance policy and pay it back on a flexible rate, which is on your terms.
Bootstrapping is the term given when you start your business with no outside money. The way this works is you use personal savings and adjust your living allowance so that the start-up costs of your new business are taken care of. The advantage of funding your business in this way is that you are completely independent in how you run your business. The disadvantage however is that your business could end up being under funded as there is nothing to support it. Also when people use their own money to fund their business they tend not to write a business plan. Not having this business plan increases the chance of failure due to the fact the business will not be well researched and analysed and there will be fewer opportunities for feedback.
It is highly important that you find the right funding for your business. You must be selective and smart or your dream business could turn into your worst nightmare, you should think about your long term personal business goals and the type of business you’re planning.
There two main categories of funding; debt and equity.
Debt Funding
You borrow money and must pay it back with interest within a certain timeframe. Debt funding sources can be from banks, finance companies, credit unions, credit card companies and private corporations.
Equity Funding
You raise start-up finance for your business by selling a portion of ownership in your company. Selling equity means taking on investors, many small businesses raise equity by bringing in investors to make their business succeed and to get a return on investment. The two main types of equity funding are business angels and venture capitalists.
Angel Start-ups, home of all your business funding needs
Business Plans and Business Angels
A business plan is not optional it is vital to the success of your business. Your business plan has to realistic and a working one, meaning you can add to it as your business grows and develops.
Your business plan can spot potential pitfalls before they happen and structure the financial side of your business. It will focus your development efforts and as I previously said will allow you to update it, making it a living document.
Regardless of whether you use your business plan internally or externally you should take an honest and objective look at your business. Your business plan acts as a statement of intent and demonstrates how you’re going to develop and who will play a part in this development as well as how you will manage your money.
As some of you may already know, what you put into your business plan is key to it being a well structured guide to your business. Some of things that should be included in your business are:
• Overview of the business you want to start – many leaders/investors make judgments about your business based on this section alone.
• Short description of business opportunity – who you are/ what you plan to sell/offer and to who and why
• Marketing and sales strategy – why you think people will buy what you want to sell
• Management team/personnel – your credentials and people you plan to recruit
• Your operations – premises, production, facilities, management information systems
• Financial forecast – translates everything you have said in previous sections into numbers
Your business plan is your main access to business finance. Without a well developed plan you won’t gain the financial help you desire, especially if you are hoping to use the help of a business angel to invest in your business.
When a business angel or any other type of help financially invests in your business they are taking a risk as they are using their money to fund your business so it wouldn’t be just you to lose out if something went wrong. This is why your business plan is so important as it is the tool that will persuade a business angel to invest in your business, no one will come near if they think your business hasn’t got the potential to success; your business plan is the thing that has to convince them otherwise.
The term business angel is used as these people save new businesses when no one else will help. A business angel is a person that invests a lot of money into your business in return for a small share. Although they will often want a say in the running of your business, they not only offer you their money, you get their expert knowledge as well, making that small share worth it.
So who are these people known as business angels? Where does their background lie? Business angels are entrepreneurs or executives of their own successful businesses. They are people who started out just like you, with a business idea that they turned into a reality and turned it into a great success. Due to the background of a business angel you know you are in good hands with someone you can trust. They know what they are doing in the business sense and could be the exact tool you need to turn your business into everything you set out for.
Angel Start-ups, home of all your business finance needs.
Your business plan can spot potential pitfalls before they happen and structure the financial side of your business. It will focus your development efforts and as I previously said will allow you to update it, making it a living document.
Regardless of whether you use your business plan internally or externally you should take an honest and objective look at your business. Your business plan acts as a statement of intent and demonstrates how you’re going to develop and who will play a part in this development as well as how you will manage your money.
As some of you may already know, what you put into your business plan is key to it being a well structured guide to your business. Some of things that should be included in your business are:
• Overview of the business you want to start – many leaders/investors make judgments about your business based on this section alone.
• Short description of business opportunity – who you are/ what you plan to sell/offer and to who and why
• Marketing and sales strategy – why you think people will buy what you want to sell
• Management team/personnel – your credentials and people you plan to recruit
• Your operations – premises, production, facilities, management information systems
• Financial forecast – translates everything you have said in previous sections into numbers
Your business plan is your main access to business finance. Without a well developed plan you won’t gain the financial help you desire, especially if you are hoping to use the help of a business angel to invest in your business.
When a business angel or any other type of help financially invests in your business they are taking a risk as they are using their money to fund your business so it wouldn’t be just you to lose out if something went wrong. This is why your business plan is so important as it is the tool that will persuade a business angel to invest in your business, no one will come near if they think your business hasn’t got the potential to success; your business plan is the thing that has to convince them otherwise.
The term business angel is used as these people save new businesses when no one else will help. A business angel is a person that invests a lot of money into your business in return for a small share. Although they will often want a say in the running of your business, they not only offer you their money, you get their expert knowledge as well, making that small share worth it.
So who are these people known as business angels? Where does their background lie? Business angels are entrepreneurs or executives of their own successful businesses. They are people who started out just like you, with a business idea that they turned into a reality and turned it into a great success. Due to the background of a business angel you know you are in good hands with someone you can trust. They know what they are doing in the business sense and could be the exact tool you need to turn your business into everything you set out for.
Angel Start-ups, home of all your business finance needs.
Business Finance
So you want to start up a new business? You’ve done your research into the existing businesses and checked out your competition whilst gaining some hands on experience along the way. You’re armed with your business plan, outlining your every move from your objectives, strategies, and target market to your financial forecast. There’s just one little hurdle left to leap over, the decision and arrangement of business finance.
More and more businesses and new ventures are failing to get anywhere past the starting line. There are two main reasons why most businesses fail; poor management plans and inadequate business capital, which is why raising money is important in the early stages of a business.
So why is this need for finance so important? As a new business you will need not only a place for your business to be housed in but also all of the necessary equipment that will be needed to make sure your business is running to its fullest. This start up capital will be used to pay for:
• The renting/buying of a premises/office space, which will require payment of three months in advance.
• Any machinery or office equipment
• Business services such as insurance
• The purchase of stock
• Wages and salaries
•Any financial cover you may need while waiting for customers to use your business
In order to gain the correct business finance and to make sure that people will be willing to invest in your business it is essential to have a well structured and developed business plan. It should state how your business will be different from the competition, why people will use your business and how you will supply your customers with what they require. Research has been conducted that has found companies with a structured business plan stating their overall goals and how they plan to move their business towards them make a considerably higher profit than those that don’t.
Most avenues that you chose to go down in order to secure business finance won’t come near your business without this business plan. So what are your options when it comes to business finance? There are many options open to you but that doesn’t mean that all of them are right for you.
One of the first places that people go to for business finance is there bank. Although banks are still the most common form of business finance it doesn’t automatically mean they are the best. All banks vary in terms of what they can offer start-up businesses, so it is important to talk to a number of them before making a decision. Banks will also expect you to put some of your own money into the business; as a new business venture you may not be able to afford this.
Another form of business finance is asset financing. This is a line of credit that is secured by assets such as real estate. So as a new business venture you can use these assets as collateral to obtain capital. However if payments aren’t made your assets may be seized.
An ever popular choice of Business Finance for a new business venture is a business angel. Business Angels are called this because they often save struggling firms with both finance and advice when no one else will. Angel investors understand the needs of a new business through there own experience and are able to advice and aid the companies in many ways. Business angels are successful entrepreneurs or executives. With their skill, luck, careful planning and good management; they have turned many businesses into profitable ones.
Finally there are venture capitalists who are private investors for financing new or growing businesses and even struggling established businesses. Even though they are high risk investments they can offer the potential for above average returns and/or a percentage of ownership of the company.
Angel Start-ups, home of all your business finance needs.
More and more businesses and new ventures are failing to get anywhere past the starting line. There are two main reasons why most businesses fail; poor management plans and inadequate business capital, which is why raising money is important in the early stages of a business.
So why is this need for finance so important? As a new business you will need not only a place for your business to be housed in but also all of the necessary equipment that will be needed to make sure your business is running to its fullest. This start up capital will be used to pay for:
• The renting/buying of a premises/office space, which will require payment of three months in advance.
• Any machinery or office equipment
• Business services such as insurance
• The purchase of stock
• Wages and salaries
•Any financial cover you may need while waiting for customers to use your business
In order to gain the correct business finance and to make sure that people will be willing to invest in your business it is essential to have a well structured and developed business plan. It should state how your business will be different from the competition, why people will use your business and how you will supply your customers with what they require. Research has been conducted that has found companies with a structured business plan stating their overall goals and how they plan to move their business towards them make a considerably higher profit than those that don’t.
Most avenues that you chose to go down in order to secure business finance won’t come near your business without this business plan. So what are your options when it comes to business finance? There are many options open to you but that doesn’t mean that all of them are right for you.
One of the first places that people go to for business finance is there bank. Although banks are still the most common form of business finance it doesn’t automatically mean they are the best. All banks vary in terms of what they can offer start-up businesses, so it is important to talk to a number of them before making a decision. Banks will also expect you to put some of your own money into the business; as a new business venture you may not be able to afford this.
Another form of business finance is asset financing. This is a line of credit that is secured by assets such as real estate. So as a new business venture you can use these assets as collateral to obtain capital. However if payments aren’t made your assets may be seized.
An ever popular choice of Business Finance for a new business venture is a business angel. Business Angels are called this because they often save struggling firms with both finance and advice when no one else will. Angel investors understand the needs of a new business through there own experience and are able to advice and aid the companies in many ways. Business angels are successful entrepreneurs or executives. With their skill, luck, careful planning and good management; they have turned many businesses into profitable ones.
Finally there are venture capitalists who are private investors for financing new or growing businesses and even struggling established businesses. Even though they are high risk investments they can offer the potential for above average returns and/or a percentage of ownership of the company.
Angel Start-ups, home of all your business finance needs.
Business Funding – How to Raise Finance
When going into a new business venture you need to keep a close watch on your money and keep in mind when and how you are going to pay back the resources that you lent money off. Many businesses grow fast and the debts that come with them grow even faster. If you’re going to be a success you need to be smart and have a plan for your expenditures.
However as the famous statement goes; “It takes money to make money.” So how are you going to find the cash that is needed to get a new business venture off the ground? There are many avenues that are open to you but finding the right one to suit you and your business needs is the hard part.
If you got another job to fuel your venture you run the risk of burning out. You could hurt your health and the relationships of those around you as all your time will be given to work.
Another option open to you is lending money off family and friends but just like the idea of getting a part time job, lending off family and friends has serious flaws, even if you are lending off people you have total trust and comfort with. If you did lend money off loved ones and your venture become an ultimate success then great, you have no need to worry and your relationships are untouched but if your venture fails so do your relationships, is it really worth the risks?
Credit cards are a great resource to fund your business and to get it off the ground. For Visa the number of small business credit card transactions grew by 29% last year alone. You need to be careful though, can you really afford to get in that much debt and start paying it back pretty much straight away?
More professional and even reliable forms of business funding come from places such as Venture capital/equity funding. Venture capital is a widely used phrase. A venture capitalist provides assistance and expertise with business planning as well as providing your business with money. They have industry knowledge but you should be aware that their primary motive is to make a lot of money. Most venture capitalists are only interested in businesses that are guaranteed to grow to be a large company. If you’re a small store don’t waste your time on venture capitalists.
One way to gain money for your business is to try and apply for a Grant. Normally never repaid; grants are a one off payment to companies who are doing specific projects. A grant helps towards the cost of a specific area of business. They are given by local authorities/Government/European Union. They can be a great help to your business, however if you pin all your hopes on gaining a grant and then fail to receive one you are back to where you started, trying to find capital to start your business up.
What remains the best source of money for new business ventures is a business angel. A business angel is a wealthy individual who has already made their fortune. They involve their time, money and experience into a company. Business Angels are very important to new and growing businesses but they are still a under utilised source of money.
Business Angels invest in all different types of businesses across many industry sectors and they invest especially in businesses that are in there early stages. The commitment of a Business Angel is often very strong and a business angel will do everything they can to get your business to be a success. They are the best and most reliable way of getting money into your business in the early, make or break stages.
Angel Start-ups, helping you to raise finance for your business.
Please feel free to republish this article provided a working hyperlink remains to our site.
However as the famous statement goes; “It takes money to make money.” So how are you going to find the cash that is needed to get a new business venture off the ground? There are many avenues that are open to you but finding the right one to suit you and your business needs is the hard part.
If you got another job to fuel your venture you run the risk of burning out. You could hurt your health and the relationships of those around you as all your time will be given to work.
Another option open to you is lending money off family and friends but just like the idea of getting a part time job, lending off family and friends has serious flaws, even if you are lending off people you have total trust and comfort with. If you did lend money off loved ones and your venture become an ultimate success then great, you have no need to worry and your relationships are untouched but if your venture fails so do your relationships, is it really worth the risks?
Credit cards are a great resource to fund your business and to get it off the ground. For Visa the number of small business credit card transactions grew by 29% last year alone. You need to be careful though, can you really afford to get in that much debt and start paying it back pretty much straight away?
More professional and even reliable forms of business funding come from places such as Venture capital/equity funding. Venture capital is a widely used phrase. A venture capitalist provides assistance and expertise with business planning as well as providing your business with money. They have industry knowledge but you should be aware that their primary motive is to make a lot of money. Most venture capitalists are only interested in businesses that are guaranteed to grow to be a large company. If you’re a small store don’t waste your time on venture capitalists.
One way to gain money for your business is to try and apply for a Grant. Normally never repaid; grants are a one off payment to companies who are doing specific projects. A grant helps towards the cost of a specific area of business. They are given by local authorities/Government/European Union. They can be a great help to your business, however if you pin all your hopes on gaining a grant and then fail to receive one you are back to where you started, trying to find capital to start your business up.
What remains the best source of money for new business ventures is a business angel. A business angel is a wealthy individual who has already made their fortune. They involve their time, money and experience into a company. Business Angels are very important to new and growing businesses but they are still a under utilised source of money.
Business Angels invest in all different types of businesses across many industry sectors and they invest especially in businesses that are in there early stages. The commitment of a Business Angel is often very strong and a business angel will do everything they can to get your business to be a success. They are the best and most reliable way of getting money into your business in the early, make or break stages.
Angel Start-ups, helping you to raise finance for your business.
Please feel free to republish this article provided a working hyperlink remains to our site.
Monday, 3 September 2007
Business Angels
Are you thinking about setting up your own business either from home or from an office but your struggling to gain finance to help your dream come true? Or have you a business that is struggling and you need finance to re-market your business or spice it up. If you are why not give Business Angels a thought.
Business Angels are people who usually come from an entrepreneur background that have one or more successful business behind them and therefore have the opportunity to help other struggling businesses that they can see has a future and a solid business plan. They will invest their own capital and have a return of the percentage of the business unlike banks who will charge interest and expect you to pay them back over a certain period of time. The business angel will help you along the way with their knowledge of the business industry as well as their contacts and expertise.
Due to the Business Angel having a hands on approach within your business you need to get along easily with the business angel as you will spend time going through plans, money issues etc. They will normally get a good return for their investment, if they think the business will grow rapidly and succeed there more likely to invest more capital. The business angel usually invests between £75,000 to £250,000. If business angels work together on a single business and they group together this sum is likely to be a lot higher.
Before you even consider contacting a business angel make sure you have a well prepared business plan showing them what your business does what you want to achieve, estimation of costs, employment of staff and any other ideas you may have. If you haven’t got a well planned and prepared business plan a business angel wouldn’t even consider investing their capital into your business, as it’s their own hard earned cash and they want a return from it.
Contacting a business angel in your area is simple using the website www.angelstartups.com. It’s a great website for giving you ideas on what kind of business you may want to start up, the different types of investment you can receive from business angels or funding from family and friends. They can also help you set up a business plan you can use to achieve the finance you want.
The advice is free and impartial, so why not give Angelstartups a try today and find a Business Angel in your local area.
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Angel Start-ups is an internet resource for small businesses, start up companies, entrepreneurs, bankers, loan companies, venture capitalists and Business Angels.
Business Angels are people who usually come from an entrepreneur background that have one or more successful business behind them and therefore have the opportunity to help other struggling businesses that they can see has a future and a solid business plan. They will invest their own capital and have a return of the percentage of the business unlike banks who will charge interest and expect you to pay them back over a certain period of time. The business angel will help you along the way with their knowledge of the business industry as well as their contacts and expertise.
Due to the Business Angel having a hands on approach within your business you need to get along easily with the business angel as you will spend time going through plans, money issues etc. They will normally get a good return for their investment, if they think the business will grow rapidly and succeed there more likely to invest more capital. The business angel usually invests between £75,000 to £250,000. If business angels work together on a single business and they group together this sum is likely to be a lot higher.
Before you even consider contacting a business angel make sure you have a well prepared business plan showing them what your business does what you want to achieve, estimation of costs, employment of staff and any other ideas you may have. If you haven’t got a well planned and prepared business plan a business angel wouldn’t even consider investing their capital into your business, as it’s their own hard earned cash and they want a return from it.
Contacting a business angel in your area is simple using the website www.angelstartups.com. It’s a great website for giving you ideas on what kind of business you may want to start up, the different types of investment you can receive from business angels or funding from family and friends. They can also help you set up a business plan you can use to achieve the finance you want.
The advice is free and impartial, so why not give Angelstartups a try today and find a Business Angel in your local area.
----------------------------------------------------------------------
Angel Start-ups is an internet resource for small businesses, start up companies, entrepreneurs, bankers, loan companies, venture capitalists and Business Angels.
Friday, 13 July 2007
Luton Business Startups
The largest city in Bedfordshire is much, much more than car and hat manufacturer. Funnily enough the phrase "Mad as a Hatter" originated from Luton. The hat workers were exposed to Mercury, making them just a little bit crazy!
Probably the most famous son of the town is Sir Alec Jeffrey, born in 1950 he developed the technique now called DNA fingerprinting, other notable individuals include Paul Young who worked at the Vauxhall Factory and Charles Bronson one of the UK’s most notorious prisoners was born in Luton.
The very first Domino's Pizza in the UK opened in Luton in 1985, and talking of Take-Aways feeling famished whilst at Luton Airport actor Antonio Banderas ordered a curry from his favorite Indian restaurant in Mayfair London. The cost £700.
Luton Town football club have been resident at their present ground Kenilworth Road since 1905. The mighty “hatters” can lay claim to having had a famous fan, in one half of the comedy duo of Morecambe and Wise, namely Eric Morecambe. Manager Kevin Blackwell is building for the future and will be looking forward to playing Leeds on September 1st.
9.4 million passengers passed through Luton airport in 2006. Demand of airport services is projected to exceed the 30 million mark in 2030. Luton airports future is clearly a bright one, as it aims to satisfy the increased capacity needs of the South East.
There is lot’s to see and do in Luton and the Nightlife is excellent, it’s often the preferred location for festival and concert organisers, and is hosting Tribal Gathering in 2007.
If you are looking to set up a business in the Luton area, you may need some financial assistance, which is where Business Angels might be the right move for you. Angels are often from an entrepreneurial background, and are willing to invest their own capital into a business to help it achieve its growth plans. Unlike banks and other forms of lending, the Angel will invest in your company in return for a percentage share, or equity stake. On top of this they will provide you with their own industry knowledge, expertise and contacts, in order to further help your growth in the market. With this hands on approach by the investor, it is important that a good relationship is developed between you and the Business Angel, as they look to secure a good return on their investment. Individually, Angels are normally willing to invest between £75,000 and £250,000, but if they operate as part of syndicate then this figure could easily be higher.
When pitching your business idea to an Angel, it is essential to make sure that you have prepared an in depth business plan with all of your estimates and ideas laid out for them to scrutinise. Remember, it is their own hard earned cash that they are putting into the business, so they will want to see evidence that you have put the effort in. It would even help to show them that you have invested as much money as you can by yourself, to prove your commitment and work ethic.
Luton Business Startups
Probably the most famous son of the town is Sir Alec Jeffrey, born in 1950 he developed the technique now called DNA fingerprinting, other notable individuals include Paul Young who worked at the Vauxhall Factory and Charles Bronson one of the UK’s most notorious prisoners was born in Luton.
The very first Domino's Pizza in the UK opened in Luton in 1985, and talking of Take-Aways feeling famished whilst at Luton Airport actor Antonio Banderas ordered a curry from his favorite Indian restaurant in Mayfair London. The cost £700.
Luton Town football club have been resident at their present ground Kenilworth Road since 1905. The mighty “hatters” can lay claim to having had a famous fan, in one half of the comedy duo of Morecambe and Wise, namely Eric Morecambe. Manager Kevin Blackwell is building for the future and will be looking forward to playing Leeds on September 1st.
9.4 million passengers passed through Luton airport in 2006. Demand of airport services is projected to exceed the 30 million mark in 2030. Luton airports future is clearly a bright one, as it aims to satisfy the increased capacity needs of the South East.
There is lot’s to see and do in Luton and the Nightlife is excellent, it’s often the preferred location for festival and concert organisers, and is hosting Tribal Gathering in 2007.
If you are looking to set up a business in the Luton area, you may need some financial assistance, which is where Business Angels might be the right move for you. Angels are often from an entrepreneurial background, and are willing to invest their own capital into a business to help it achieve its growth plans. Unlike banks and other forms of lending, the Angel will invest in your company in return for a percentage share, or equity stake. On top of this they will provide you with their own industry knowledge, expertise and contacts, in order to further help your growth in the market. With this hands on approach by the investor, it is important that a good relationship is developed between you and the Business Angel, as they look to secure a good return on their investment. Individually, Angels are normally willing to invest between £75,000 and £250,000, but if they operate as part of syndicate then this figure could easily be higher.
When pitching your business idea to an Angel, it is essential to make sure that you have prepared an in depth business plan with all of your estimates and ideas laid out for them to scrutinise. Remember, it is their own hard earned cash that they are putting into the business, so they will want to see evidence that you have put the effort in. It would even help to show them that you have invested as much money as you can by yourself, to prove your commitment and work ethic.
Luton Business Startups
Tuesday, 10 July 2007
How to Start a Night Club Business
There are many factors which need to be considered when you decide to open a night club, and many seemingly insignificant details which need to be attended to in order for the venue to be a success.
First and foremost, the location of the nightclub has to be right, in terms of whether you intend on taking over an existing club, or purchasing a brand new piece of real estate. There are advantages to both, in that an existing nightclub will have clear competitors, so you will be fully aware of the dangers that lie ahead. On the other hand, there must be a reason for the original owners to want to sell it on, and this could range from low levels of sales to low attendance.
Once you have decided on the location and premises, the theme of the nightclub needs to be addressed. The target market is possibly the most important factor, and whether you are looking to attract teenagers, young adults or a more mature crowd. This could of course vary during the week, for example a student night on a Wednesday could be replaced by an over-21 night at the weekend. Once this has been agreed, the next challenge is to decide on opening hours, and how many days of the week the club will be open. This leads nicely on to the inside of the club, and decisions on the type of music, resident DJ’s, features (pool tables, plasma screens, laminate flooring, etc) and catering options, such as snacks (crisps, peanuts etc) or fully fledged restaurant capabilities.
One of the most important issues when setting up a nightclub venue is the pricing strategy you are going to adopt. This will often depend largely on location, for example in London you may pay an entry fee of up to £20, whereas in Aberystwyth you would pay under £5. Knowing which brands of beers, wines and spirits to stock is key, as well as the price at which you charge for them. Again, this is highly dependant on location, as some regions are more partial than others to certain types of drink.
Nightclubs need to be able to compete not only on price, but in terms of level of quality as well. Many clubs can offer drinks promotions, free entry and other benefits, but it is quite often the quality of the venue (furnishings, music, and staff) that will make up a clubbers mind as to where to continue their night.
In order to begin to set up a business, you need to have the necessary start-up capital. This can be secured through a bank or investor, but in either case the business plan needs to be flawless, in order to convince them that the venture is likely to be a success. To do this, it is important to show you have covered for all of the common pit falls of starting up a business, as well as having invested a considerable amount of your own money (savings, re-mortgaging your house, etc). On top of the money needed to provide for the likes of rent, refurbishment, resourcing staff, etc, once the club actually opens there will be a period of around two months where the money generated may not be enough to cover expenses such as wages, stock replenishment, and other utility bills. Again, this will need to be covered by the initial investment.
Some banks may not be keen to lend you the necessary capital in order to start up your business. Business Angels are a potential answer to this problem, due to their tendency to take greater risks, but again these risks are measured, and an Angel will only be as committed to the project as you are yourself.
Article Source: angelstartups.com, experts in Business Startups
First and foremost, the location of the nightclub has to be right, in terms of whether you intend on taking over an existing club, or purchasing a brand new piece of real estate. There are advantages to both, in that an existing nightclub will have clear competitors, so you will be fully aware of the dangers that lie ahead. On the other hand, there must be a reason for the original owners to want to sell it on, and this could range from low levels of sales to low attendance.
Once you have decided on the location and premises, the theme of the nightclub needs to be addressed. The target market is possibly the most important factor, and whether you are looking to attract teenagers, young adults or a more mature crowd. This could of course vary during the week, for example a student night on a Wednesday could be replaced by an over-21 night at the weekend. Once this has been agreed, the next challenge is to decide on opening hours, and how many days of the week the club will be open. This leads nicely on to the inside of the club, and decisions on the type of music, resident DJ’s, features (pool tables, plasma screens, laminate flooring, etc) and catering options, such as snacks (crisps, peanuts etc) or fully fledged restaurant capabilities.
One of the most important issues when setting up a nightclub venue is the pricing strategy you are going to adopt. This will often depend largely on location, for example in London you may pay an entry fee of up to £20, whereas in Aberystwyth you would pay under £5. Knowing which brands of beers, wines and spirits to stock is key, as well as the price at which you charge for them. Again, this is highly dependant on location, as some regions are more partial than others to certain types of drink.
Nightclubs need to be able to compete not only on price, but in terms of level of quality as well. Many clubs can offer drinks promotions, free entry and other benefits, but it is quite often the quality of the venue (furnishings, music, and staff) that will make up a clubbers mind as to where to continue their night.
In order to begin to set up a business, you need to have the necessary start-up capital. This can be secured through a bank or investor, but in either case the business plan needs to be flawless, in order to convince them that the venture is likely to be a success. To do this, it is important to show you have covered for all of the common pit falls of starting up a business, as well as having invested a considerable amount of your own money (savings, re-mortgaging your house, etc). On top of the money needed to provide for the likes of rent, refurbishment, resourcing staff, etc, once the club actually opens there will be a period of around two months where the money generated may not be enough to cover expenses such as wages, stock replenishment, and other utility bills. Again, this will need to be covered by the initial investment.
Some banks may not be keen to lend you the necessary capital in order to start up your business. Business Angels are a potential answer to this problem, due to their tendency to take greater risks, but again these risks are measured, and an Angel will only be as committed to the project as you are yourself.
Article Source: angelstartups.com, experts in Business Startups
Wednesday, 31 January 2007
London Business Startup
Are you a budding entrepreneur living in London with a great invention that you think will be next year’s top seller? Have you got an idea for a great new business but no funds to start you up? Do you want to start a business up but don’t know where to start? If the answer is yes to any of these questions then there are some important things to think about and people and companies that can help you.
First things to think about are whether there is a demand for your product or services. The way to find this out is to do some research. Have a look and see if there are any other companies offering the same service or products. If you are offering a service that is local, then you need to see what competitors you have and how you can go about becoming more successful than the already established businesses. If your area of business is highly competitive then you will need a good business plan to make your business more desirable to possible clients and more competitive. It might be worth talking to some businesses that have experience within your subject area. It would be wise to listen to them as they should offer good advice.
Finance is another big issue. Have you got the finance needed? All businesses that are starting up need an injection of cash. You could get your self a loan, but loan companies can be sharks and you have to be careful. There are companies that offer loans for startup businesses which have a smaller interest rate which might be more appropriate. There are lots of companies in London so make sure you choose a respected one.
There are other issues like Tax, National Insurance and VAT. It can all get a bit confusing and stressful. If you’re new to business then all of these aspects could be rather overwhelming. So what can you do? You could research into all these areas, spend hours on the phone talking to different organizations or you could get in touch with a company that specialise in helping businesses to start up. Business angels or business consultants are probably the best way to get all the help you need. A good company will offer you good advice and set you off in the right direction. Many companies have investors and people with a lot of money that might be willing to invest in your company.
Going it alone is wrong. A friend of mine went to university and in her final year invented a unique product. She won a number of awards, and was tipped to being a millionaire. She went on a number of television shows and the local press interviewed her and it all looked very prosperous. She borrowed thousands of pounds and set her business up ready to concur the world. Unfortunately within 3 years the business failed and she went bankrupt. Had she followed advice from professionals and involved a business angel which could have helped her create a realistic business plan and strategy she may well have been the millionaire that was expected.
So my advice is simple, get professional advice, listen and believe what they are telling you. Use a London business angel or professional organization which will cover every aspect of starting a small business up.
Carolyn Clayton is the webmaster of eman8e.com, a professional London Business Startup company. Please feel free to republish this article providing this resource box remains intact with a working hyperlink to our site.
First things to think about are whether there is a demand for your product or services. The way to find this out is to do some research. Have a look and see if there are any other companies offering the same service or products. If you are offering a service that is local, then you need to see what competitors you have and how you can go about becoming more successful than the already established businesses. If your area of business is highly competitive then you will need a good business plan to make your business more desirable to possible clients and more competitive. It might be worth talking to some businesses that have experience within your subject area. It would be wise to listen to them as they should offer good advice.
Finance is another big issue. Have you got the finance needed? All businesses that are starting up need an injection of cash. You could get your self a loan, but loan companies can be sharks and you have to be careful. There are companies that offer loans for startup businesses which have a smaller interest rate which might be more appropriate. There are lots of companies in London so make sure you choose a respected one.
There are other issues like Tax, National Insurance and VAT. It can all get a bit confusing and stressful. If you’re new to business then all of these aspects could be rather overwhelming. So what can you do? You could research into all these areas, spend hours on the phone talking to different organizations or you could get in touch with a company that specialise in helping businesses to start up. Business angels or business consultants are probably the best way to get all the help you need. A good company will offer you good advice and set you off in the right direction. Many companies have investors and people with a lot of money that might be willing to invest in your company.
Going it alone is wrong. A friend of mine went to university and in her final year invented a unique product. She won a number of awards, and was tipped to being a millionaire. She went on a number of television shows and the local press interviewed her and it all looked very prosperous. She borrowed thousands of pounds and set her business up ready to concur the world. Unfortunately within 3 years the business failed and she went bankrupt. Had she followed advice from professionals and involved a business angel which could have helped her create a realistic business plan and strategy she may well have been the millionaire that was expected.
So my advice is simple, get professional advice, listen and believe what they are telling you. Use a London business angel or professional organization which will cover every aspect of starting a small business up.
Carolyn Clayton is the webmaster of eman8e.com, a professional London Business Startup company. Please feel free to republish this article providing this resource box remains intact with a working hyperlink to our site.
Angel Startups are the best way to make your business succeed.
This is a true story of how a business angel could have helped my friend, she was tipped at being a self made millionaire but instead after 3 years she claimed bankruptcy and gave it all up. I have changed her name and omitted details of the invention to protect her identity.
I met Sarah on an access course and found her nice but a bit bossy and competitive. One day we were talking about going to university and she asked me what I planned to do and what she thought would make her the most money. I had plans to study computer science and suggested CAD (computer aided design) would probably bring in the most money. In the end I became pregnant and my partner and I decided to start up our own business from home. We got a loan from the Princes Trust to start us off. My friend went on to University and I didn’t here from her again until 3 years later when she was just about to graduate.
I was watching the local news and my old friend Sarah was the main story. She was being tipped to become a self made millionaire all because of her final year dissertation. She had invested a product that was tipped to sell world wide and make her a fortune. She had won numerous awards and had been asked to appear on a number of television shows including This Morning and Living Genius. There was a big hipe around her and this new product and she was getting investors left right and centre. The university bent over backwards to help their star pupil and advised her on what to do next.
Around that time unfortunately for me my relationship had crumbled and my partner had left me for some cleaner and took the business with him, leaving me a single parent on benefits. I tried to get a job but was told by my local job centre that even though I was more qualified than the job centre lady interviewing me I would be not be better off going to work infact worse off. This made decide to go to University.
After my first year at uni I had seen my friend on a program and thought I must get I back in touch with her as she seemed to be doing so well and I was pleased for her. She was a hard worker and obviously deserved all this attention and the rewards from it. I got back in touch with her through a mutual friend and I popped round to her new business premises to see her. She was sat behind a desk with all her awards and certificates behind her on the wall and she looked like the cat how had got the cream, and who could blame her. I was a little envious I guess but I thought she had got a little two big for her boots and all she talked about was her her her. The premises were huge, far to huge I thought for a starting out business. She was renting part of the space out as it was so huge and the costs were so high. I remember thinking then that this will fail, she had daft ideas and was not very business minded. Her husband didn’t seem to have a clue about anything and was little help.
She was going on about a global company that want to buy her product and sell it via their outlets around the world, but they want to change the material and use their name and packaging. Sarah however wanted to sell her product with her own box and packaging and sell to little outlets around the county and give the smaller businesses a chance. Big mistake! That company would have made her the millionaire that everyone claimed she was going to be. Had I been her investor or business partner or adviser I would of jumped at that offer. I had already thought that I liked the idea of the product but I too thought it would sell better if it was a different material. I daren’t of told her that as this was her baby and she would argue the toss.
She plodding on for another 18 months or so and things never really took off. She was running at a loss and there was no sign of the millions she thought she would make. After another year she gave up completely. The entire buzz around her and the invention vanished and she was left stressed and feeling a failure.
So the moral of this story is it takes more than just a good invention and hard work to make a business become successful. I believe if she had been given the right firm advice and ignored all the hype and press surrounding her she would be that millionaire. Her invention was good, but needed tweaking so as to make it a global success. She should have listened to the advice of professionals and looked at her invention as a business venture not as her precious baby. By turning down a big contract with a huge global company she lost out. But I believe if she had the right backing she could have been a huge success.
Eman8te is an internet resource small business, start up companies, entrepreneurs, bankers, loan companies, venture capitalists and Business Startup Angel.
I met Sarah on an access course and found her nice but a bit bossy and competitive. One day we were talking about going to university and she asked me what I planned to do and what she thought would make her the most money. I had plans to study computer science and suggested CAD (computer aided design) would probably bring in the most money. In the end I became pregnant and my partner and I decided to start up our own business from home. We got a loan from the Princes Trust to start us off. My friend went on to University and I didn’t here from her again until 3 years later when she was just about to graduate.
I was watching the local news and my old friend Sarah was the main story. She was being tipped to become a self made millionaire all because of her final year dissertation. She had invested a product that was tipped to sell world wide and make her a fortune. She had won numerous awards and had been asked to appear on a number of television shows including This Morning and Living Genius. There was a big hipe around her and this new product and she was getting investors left right and centre. The university bent over backwards to help their star pupil and advised her on what to do next.
Around that time unfortunately for me my relationship had crumbled and my partner had left me for some cleaner and took the business with him, leaving me a single parent on benefits. I tried to get a job but was told by my local job centre that even though I was more qualified than the job centre lady interviewing me I would be not be better off going to work infact worse off. This made decide to go to University.
After my first year at uni I had seen my friend on a program and thought I must get I back in touch with her as she seemed to be doing so well and I was pleased for her. She was a hard worker and obviously deserved all this attention and the rewards from it. I got back in touch with her through a mutual friend and I popped round to her new business premises to see her. She was sat behind a desk with all her awards and certificates behind her on the wall and she looked like the cat how had got the cream, and who could blame her. I was a little envious I guess but I thought she had got a little two big for her boots and all she talked about was her her her. The premises were huge, far to huge I thought for a starting out business. She was renting part of the space out as it was so huge and the costs were so high. I remember thinking then that this will fail, she had daft ideas and was not very business minded. Her husband didn’t seem to have a clue about anything and was little help.
She was going on about a global company that want to buy her product and sell it via their outlets around the world, but they want to change the material and use their name and packaging. Sarah however wanted to sell her product with her own box and packaging and sell to little outlets around the county and give the smaller businesses a chance. Big mistake! That company would have made her the millionaire that everyone claimed she was going to be. Had I been her investor or business partner or adviser I would of jumped at that offer. I had already thought that I liked the idea of the product but I too thought it would sell better if it was a different material. I daren’t of told her that as this was her baby and she would argue the toss.
She plodding on for another 18 months or so and things never really took off. She was running at a loss and there was no sign of the millions she thought she would make. After another year she gave up completely. The entire buzz around her and the invention vanished and she was left stressed and feeling a failure.
So the moral of this story is it takes more than just a good invention and hard work to make a business become successful. I believe if she had been given the right firm advice and ignored all the hype and press surrounding her she would be that millionaire. Her invention was good, but needed tweaking so as to make it a global success. She should have listened to the advice of professionals and looked at her invention as a business venture not as her precious baby. By turning down a big contract with a huge global company she lost out. But I believe if she had the right backing she could have been a huge success.
Eman8te is an internet resource small business, start up companies, entrepreneurs, bankers, loan companies, venture capitalists and Business Startup Angel.
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