Successful businessmen and women who want to invest their capital in struggling businesses or startup franchises are called Business Angels. In return for the investment, they usually want convertible debt or ownership equity. In order to get a good return on their investment, they plan to use their expertise to turn the businesses into successes.
Because of their experience, Business Angels are very careful about who they invest in. Their plan of action involves investing when the shares are cheap, working with the company, building it up and then selling the mature company after a few years to other stockbrokers or to the original owner.
Dragons Den is a popular program that has investors waiting to invest in a business. As the owner of a business, it is important to have a great sales pitch and to prepare in advance. It helps to have a clear business strategy. The dragons are usually good at noticing if the target audience and market has not been researched adequately.
In order to impress the dragons, it is important to have accurate sales projections – they want facts as answers to their questions, not lies. They will usually not invest in a highrisk business if they believe it won’t work. They are experts in their field, so their advice about business ideas is very valuable, and should be heeded.
Confidence is very important. Voice, posture and attitude are dead giveaways when it comes to confidence, so it helps to have these areas covered when convincing potential investors. Answers should be prepared for anticipated questions. Thinking about what the investors might ask is a good strategy.
Questions about potential profits and company income are natural, so the key is to think differently. Areas of the business that make it unique and different from others should be highlighted in order to eliminate competition.
Commitment is another vital factor. Business angels like to see committed workers. They are usually impressed if the business venture includes some of the starter’s own capital. However, if thousands of pounds have already been invested in the business and it’s still not making any money, they will be wary.
Business Angels nowadays are very easy to find, thanks to the Internet. There are hundreds of sites dedicated to finding the right investor for a business. Angel groups or angel networks also exist. Therefore, starting a business has never been easier – investment is a hand’s throw away!
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