Angel Investors may be your best source of business funding

Even though you may have a great idea for a business start-up or expansion, venture capital firms are often unwilling to lend you  funding for any of a number of reasons. Venture capitalists are more likely to finance large startups that may need as much as $5 million and up. If this is your case, one of the best alternative sources of funding may be the angel investor. An angel investor is a private investor who invests personal money in an entrepreneurial company.

Angels Investors may take many forms

Angel investors come in many forms. An angel investor might be a professional like a doctor, accountant or an attorney. Some angel investors are retired people who have discretionary money. Much to people’s surprise, the typical angel investor is often not a millionaire.

Many private investors are close business associates. Business associates may be defined as any persons or businesses that might be willing to invest in your enterprise because they are familiar with your business idea and find it to be attractive. They may be people who are in your employ and want to invest in the company they work for. Also, present or future suppliers who have a vested interest in you starting a business that will use their products may be potential investors.

There are even angel investors who are fellow entrepreneurs who simply want to help other entrepreneurs like themselves get started.

Angels are Everywhere

If you begin to imagine that angel investors could be just about anywhere you look, you would be right. Many times the small business entrepreneur only thinks in terms of traditional financing sources and doesn’t consider the fact that plenty of people including business associates may be prepared to lend money. In fact, micro-lending is actually a network of angel investors who want to help small entrepreneurs grow their businesses.

How do you find angel investors? The simplest way is to take advantage of services that cater to entrepreneurs seeking startup money. Though you can search for funding through friends or business associates, the matchmaking service will bring together budding entrepreneurs and angel investors quickly and efficiently.

The typical angel investor actually functions in a manner similar to a venture capitalist. One of the main differences is that angel funders are as interested in things like leveraging their abilities and promoting entrepreneurship as they are in making a profit. Some angel investors will want to play an active role in your business while others will be silent investors. If an angel investor wants to participate, it gives you excellent access to knowledge and experience that can increase your chances for success.

Preparation is Important

When you decide that angel investing presents the best start up funding opportunity, it’s important to be well prepared. Your business idea must be well thought out and your business plan needs to be thorough. Don’t be deceived by the fact these investors are called “angels”. They are solid, experienced, knowledgeable investors who will ask tough questions and expect well prepared answers. You will need to be prepared to discuss your idea, marketing strategies, location, website development, customers, staff and expenses.

Take the Next Step!

The AIM Group has considerable experience in matching small businesses and entrepreneurs seeking various types of funding or financing with potential angel investors. Indeed, in some cases, AIM may itself elect to offer to partially or fully fund a given project once the proper groundwork has been established.

Whatever your current or future needs, you should consider contacting us for a free, no obligation, preliminary consultation.