Pros and Cons of having an Angel Investors
Pros and Cons of having an Angel Investors
Financing a business can be a hard task, especially if you do not have the finances to begin with. But the lack of funding should not hinder you from realizing your dream of launching your own business and becoming a successful entrepreneur. With so many financing options available to everyone, all you need to do is explore your options and see which one will suit your profile and your financial capacity. One financial vehicle worth checking out though is angel investors. When getting an Angel Investors it’s like choosing your business partner. Few questions that you need to ask yourself before deciding to go for an Angel Investors. Can you work with them? What can they give you? Is the deal they are offering sounds fair to you? Is the location accessible to you? Now, that we know the question that we need to ask ourselves. Let’s now discuss the pros and cons of having an Angel Investors.
Some advantages of having an Angel Investors are they prefer to fund High risk businesses. They want to invest huge amount money and would understandably require you to give up huge portion of the ownership and profits. Business angels make investments in virtually all industry sectors. Sector aside, however, it should be noted that what most attracts angels to an investment is high growth potential. Some Angels are also more flexible in their financial decisions than venture capitalists and they have different investment criteria, longer investment horizons, shorter investment processes, and lower targeted rates of return. Raising funds from business angels does not involve the high fees incurred when raising funds from financial institutions. Most Angels also has business experience and so they teaches young business entrepreneur to succeed. This free assistance and advice from an investor is priceless for young entrepreneurs starting out and would not normally be affordable by other means. Angels can be found everywhere unlike Venture Capital which is more formal to the market. Obtaining money from a business angel has a leveraging effect in that it makes the investee firm more attractive to other sources of possible finance. Angel investments certainly heighten venture capital interest in such ventures. They are also instrumental thanks to the loan guarantees they offer their investee firms, in addition to the money they personally invest.
The disadvantage of Angels Investors are less likely to make follow-on investments in the same firm. Unlike, venture capitalists spend around two-thirds of their funds on expansion funding of their existing portfolio firms. Angels also prefer to have a say in the running of the firm, which may force the entrepreneur to give up some degree of control and some may have limited expertise in running the particular type on investee firm they fund, making their contribution less value-added and more interfering. A very few Angel Investors may turn out to be "devils" who have self-serving motives for investment, rather than promoting the good of the firm. Unlike many venture capital firms, Angel Investors do not have the national reputation and prestige of a big-name institution, which can be crucial if the firm is successful enough to seek assistance from an investment bank for a private placement or IPO.
Angel Investors are risking huge amounts of money and would understandably require you to give up huge portion of the ownership and profits. Most business and financing experts suggest that you explore your options first and try to apply for a small business loan through government agencies like the Small Business Administration (SBA). But if you are willing to get an angel investor in, make sure that you and your financing partner iron out the details of your partnership before you finalize the business launching and take his or her money to fuel the start up. You can also check out some angel investors network to increase you’re to increase your chances of landing one angel as well.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.
Top 10 Small Business Ideas for 2012
Top 10 Small Business Ideas for 2012
Starting a small business takes a lot of planning and the ability to execute your business plans. Though it doesn’t require a big capital for a small business however you cannot lose your capital as this will cause a serious trouble on the financial front at the same time your future expansion plans. If you have knowledge about how to run a business successfully, you won’t be able to take a wrong move that can affect your business plans. Before we go on further to the small business ideas, refer to the tips for running a small business.
•Can it sustain your everyday expenses and can it profit you.
•Can it raise enough funds to get it running for a long time and can become a profitable venture.
•Is it something that is needed everyday and does it has an appeal to sell on a steady basis?
•Is it something that you know how to do and can you do it well?
•Is it something that you like to do and doesn’t mind you at all doing it over and over again?
Now that we know our objective in putting up a small business let’s go forward and see what are the best idea for small business this 2012.
1. Online business - this may include article writing/blogging, virtual assistant, translator, copy writer or bookkeeper, data entry, etc. This is one of the ideal business ideas for beginners would be to take advantage of various online business opportunities. By doing online data entry and online paid survey jobs, you can earn money per hour for your work. The more accuracy and consistency you show in your job, the more work you will get.
2. Mobile apps development - almost all people nowadays possesses a mobile phone and included on the mobile phone is application that people always uses. Calendars, Alarm Clocks, notepads are some example of applications that are commonly downloaded. Whether this is a businessman, a politician, an artist or just an ordinary person has a lot or even tons of mobile application.
3. Make-up artist or hair salons - Providing either makeup artist services or hair salons is yet another interesting small business idea. Makeup artists are in great demand in the fashion and entertainment industry. If you have the required makeup skills and talent, you can start your own company and do the makeup of television and movie stars. By providing good service, you can get long-term contracts which will increase your revenues greatly. The great thing about hair salons is that they are a sure thing. No matter how dismal the economic climate, women will still scrape together the money to get their hair done, even if they have to let their nails go. So hair salons with talented stylists and well-priced services will still be real money makers.
4. Cleaning services (pool, yard, garage etc.) - A cleaning service is a good business proposition for a person who relishes the idea of cleaning apartments, homes and commercial establishments. Housekeeping is an art and people are typically deterred by the prospect of getting grease, tough stains and odors out of carpets, keeping their bathroom clean and eliminating odors from their refrigerator. Hence, a cleaning service can be a steady source of income assuming that there are no immediate competitors. Otherwise, one would have to spend money on advertising and this may eat into one's profits. Cleaning services can operate round the clock since residential apartments are generally cleaned during the day while commercial buildings are cleaned after office-hours. Considering that cleaning services earn popularity and goodwill through word of mouth, a job that is well done will rarely go unnoticed.
5. Elder assistant or baby sitting – being a babysitter doesn’t require you to have a license, with more parents needing to work and offering a home based child care can be a great way of starting your own business while taking care of your own kids too. The growing numbers of senior baby boomers also provide growing business opportunities for senior care. In-home care and senior residences are the obvious ones, but don't forget all the related opportunities such as driving, delivery, catering and cleaning services for seniors who want to stay in their homes. You can certainly develop your own business providing care for seniors.
6. Recycler – the best thing of being a recycler is that you’re not just earning your own money and you’re also helping the environment. Average homeowner doesn't always know where or how to recycle the stuff they've got. A pickup truck are all you'd need to start buying or simply offering to remove scrap metal, old computers, electronics, ink cartridges and other recyclable materials.
7. Event management/party planner – Event management or party planning can also be a good option for a small business. Event planners have to organize a particular event by taking into consideration the suggestions given by their clients. This job requires creativity, patience and ability to get work done from people on time. It can help you be a successful event planner if have a good team of creative professional that can help you organize the event under you.
8. Online selling – whether this is a pre–loved or brand–new stuff you can still earn big bucks. This is being popularized by e–bay. There are still some people who have a whole lot of money and are willing to spend it on the name products that matter. Luxury handbags, scarves, and shoes for women are still selling well, for instance.
9. Social media consultants – With the ever rising of the social media era and the giant social networking sites, such as Facebook, Twitter, and You tube, businesses have been taking advantage of this to gain more exposure for their brands and products. With more than 800 million active users in Facebook alone, business promotion in this top social networking site is now a priority for business owners and marketers. If you have the social media marketing skills that can outsource likes and follows for your client’s business, then this business can help you earn cold cash on the Internet.
10. Pet related services such as pet sitter, pet cleaning and grooming services – Most Canadians and Americans loves pet especially dogs and feeding, caring for them and pampering their pooches a spending priority. Kennels, doggie daycare, dog treat bakeries and dog resorts are few of the things that you may want to venture in.
These are not necessarily ideas for businesses that anyone can start however you can get some idea on the list above. But in my opinion, these are business opportunities that are going to provide real chances to make money in 2012 and beyond. Business that is done right, in the right place and for the right people may be profitable enterprises for years to come. If you’ve been considering a sale in 2012, take your time and do it right. Plan ahead, research your market and stand out from the competition. Knowing the sales process is half the battle. With proper preparation, you can ensure a stress free transition and a financially successful exit from your business.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.
Checklist on starting a Small Business
Checklist on starting a Small Business
In today’s economic climate most probably having a small business maybe the best source of income. There are many good reasons to start your own business from the independence it can bring to your lifestyle to the noble role you can play in creating jobs to other, helping to grow economy and many others. In fact, the hardest part about becoming an entrepreneur is figuring out where to start. Whether you have some knowledge already or are going on a vague notion that this option may be for you, we hope this roundup will be a place to start.
Build a business plan
No small business expert would recommend starting a business without a business plan. There's too much at stake, your money, other people's money, the livelihood of your family and potential employees. Every business plan should include something about each of this area, Mission/vision, business name, marketing plan, competitive analysis, financial plan and products and services. In starting a business, your business plan will be your guide towards various phases on your new business and not only that; it can also attract potential investors and secure a loan. For investors this will show whether or not your business can make a profit. It requires a realistic look at almost every phase of business and allows you to show that you have worked out all the problems and decided on potential alternatives before actually launching your business.
Name your business
It may seem so simple to think of a business name, you also have to consider some things before deciding what’s going to be your name. Business name should sounds good and at the same time should be unique so that you have an impact against your competitor but not so unique that potential customers won't know what you're selling. However you go about it, spend some time with a thesaurus and an empty sheet of paper and play around with name ideas. Once you have a few you're happy with, test them out with family and friends. Before ordering letterhead, though, there are a few steps you'll need to take to ensure that you legally can use the name you selected.
Choose a business structure
There are four primary ways to legally organize a business: a sole proprietorship, a partnership, a limited liability company and a corporation. When organizing a new business, it is important to take time to review the pros and cons of each structure.
Sole proprietorship is the most common form in business structure. The owner operates the business, is personally liable for all business debts, can freely transfer all or part of the business, and can report profit or loss on personal income tax returns. Common proprietorship includes part-time businesses, direct sellers, new start-ups, contractors, and consultants.
Limited partnership, a limited partnership consists of at least one general partner (controls the business) and at least one limited partner (investor).While General Partnership is a business owned by two or more people. The partners share ownership and control of the business. Partnerships offer more freedom for business owners with shared business tasks and the potential to earn greater profits.
Limited liability company, this is now the most popular business structure nowadays, Limited Liability Company or LLC is a type of business ownership combining several features of corporation and partnership structures Owners of a LLC have the liability protection of a corporation. All your business losses, profits, and expenses flow through the company to the individual members. Unlike general partnerships which are developed under common law, an LLC is created by filing a document (usually called Articles of Organization) with an officer designated by state law.
Corporation, A corporation is a business which is considered a separate entity from you; even having the legal rights of a person. A corporation is usually the most complex and most expensive way to organize a business. Records must be kept to document decisions made by the board of directors. There are two types of corporations; C Corporations (incorporate) and S Corporations (small business). Small business is the most common corporation; C Corporation is more complicated than forming a limited liability company or a sole proprietorship.
Set up and determine your location
Most people will tell you that location is the most important aspect of starting a small business. A good location can attract a large number of walk-by traffic while a bad location can hide you away from potential customers.
There are many steps in office set up including where to locate your office (home or office space), buying the necessary office equipment, designing your work space and getting supplies. Whatever location you choose, make sure you know all of the legal restrictions on your place of business.
Get business insurance
Any business is exposed to a variety of risks. A smart business one will take the necessary acts to ease the risk and one valuable risk manager is insurance. Like home insurance, business insurance protects the contents of your business against fire, theft and other losses. Liability insurance, Property insurance, Business Interruption, Key Man, Automobile, Office and Director are some of the type of insurance that are commonly used today and are merely a starting point for evaluating the needs of your business. In many cases, there is no requirement your business needs insurance unless you have a company automobile, employees or it's a loan condition. Yet, this is no reason not to get business insurance. No business is immune to natural or man-made disasters and potential liabilities.
Create an accounting system
Financial Management, in general, is meant a set of measures aimed at reaching financial stability. In particular, a foremost aspect of financial management is efficient distribution of economic resources or, in other words, capital funds, as far as they contribute greatly to the company’s prosperity. Therefore, financial management is concerned with the questions of funds procurement and their effective use. Accounting is by far, one of most important aspects of starting and operating a business. It’s so easy to get caught up in the start up glamorous tasks of designing a business card or choosing a business name, yet without a solid understanding of the numbers you will not survive. The objectives of creating an account system is to organize survival in terms of sharp competition, prevent bankruptcy and other financial risks avoidance, increase in production volume, profit and wealth maximization and expenditure minimization. Without a firm grasp of your margins and cash flow, you can price yourself right out of the market.
Starting and managing a small business takes motivation, unrelenting desire, and talent. It also requires a lot of research and planning. Try as you might, it is not possible to know everything in the beginning. Research and planning will help minimize the unknowns and make you better prepared. Remember, lack of planning is one of the leading causes of business failures. When you start a business, your only goal is to make it succeed. And to succeed, you must be able to control all the variables along the way.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.
Attracting Venture Capitalist
Attracting Venture Capitalist
A venture capitalist is a person who invests in a business venture, providing capital for start-up or expansion. Venture capitalists are looking for a higher rate of return than would be given by more traditional investments. Venture capital was once known also as risk capital, but that term has fallen out of usage, probably because investors don't like to see the words "risk" and "capital" in close conjunction. Most venture capitalists are looking for a profit of 25 percent and up. In other words, the venture capitalist may have no business experience applicable to the industry your company is involved in, and is focused on the potential rate of return your company can provide. Venture capitalist prefers to invest in entrepreneurial businesses. This does not necessarily mean small of new businesses. Rather, it is more about the investments aspirations and potential growth. Such businesses are aiming to grow rapidly to a significant size. As a rule of thumb, unless a business can offer the prospect of significant growth within five years, it is unlikely to be of interest to a venture capital firm.
There are some key points that venture capitalist look for in a business. First is your management team, it plays a vital role especially in a start up business. VCs looks into how your team manages east to difficult situation. Venture capitalists assess the strength of a management team by examining the members from three different perspectives. Venture capitalists look for professional experience. People who have a very good track record, every startup should have a marketing and operational executive. VCs also looks for admirable personal traits in the entrepreneurs such as reliability, reputation, trustworthiness, etc. VCs would like to deal with entrepreneurs who have established credibility within the industry. Venture capitalists generally tend to invest in entrepreneurs whose reputation can be verified. And lastly, VCs look for entrepreneurial abilities in the team. Heading a startups is difficult than heading a large organization it’s because of the limited resources most startup have. Management team should not only be extremely passionate and willing to persevere about an idea, but also have the ability to take a calculated risk.
Second is competitive advantage, startup corresponds to the possession of rare core competencies that creates value to customers. A company has a competitive advantage if competitors cannot easily imitate their core competences. Competitive advantage is the company’s unique specialty that no other has. VCs look at the competitive advantage a startup has before they determine the startup’s growth potential. Every entrepreneur should articulate the competitive advantage of his/her business idea before approaching investors.
Third, VCs looks for the company’s potential to the market, it defines the total sales that the startup can eventually make. The market potential really depends on the market size, market needs, and market penetrability. Market needs describes the problem the startup intends to solve. Market size describes the quantity or size of the sales opportunity for the business. Market penetrability only tells how easy it is to make sales and generates revenues. It tells marketing efforts that the startup needs to exert before it penetrates into the market. Venture capitalists closely look at the market potential for a startup idea before they decide to fund the idea. Entrepreneurs should focus on clearly defining the market before approaching investors.
Fourth is Exit Strategy, startup should also initially plan for a strategy of "cashing in" on their company allowing VCs to liquidate their shares. VCs prefers either IPO or acquisition as their exit strategies. Most VCs prefers going public however not all companies have the potential to go for IPOs. They prefer to be acquired by a bigger company.
VCs not only invest in companies, but also help companies succeed. They advise entrepreneurs and assist with customer contacts, market specific intelligence, etc. A VC is successful only if his or her portfolio companies succeed. Venture Capital fare not mere financiers or investors. As partners of the entrepreneur, they contribute in any way possible for the success of the company. The key then is in choosing the right firm for the type of business that you would want to enter into. Just like in entering into a partnership, you wouldn't want to be partners with someone whom you don't like to work with.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out website.
What is your Business New Years resolution?
What is your business New Years resolution?
Say goodbye to 2011 and say hello to 2012 but before welcoming 2012, have you listed down your New Years resolution? It's the beginning of a New Year and most small business owners are making their New Year's resolutions about their businesses. But before doing your list you can back track your previous resolution and see if you were able to accomplish those. Pull out your business plan and any other planning documents such as last year's action plan and review last year's goals. After that you can go ahead and do your resolution. We have come up of some list that you can add on your New Years resolution.
Budget, Your budget doesn’t have to be in a fancy spreadsheet with graphs and charts. A simple, hand-written list of expenses and incomes can get you started, and can be expanded later if needed. A budget will help keep you organized and have a plan as to where all your money will go. Budgets should include the amounts that go to bills, your savings, as well as leisure and other spending.
Save, saving money may sound so easy but really, its not. Getting used to money-saving techniques can be a lengthy and involved process, especially for those of us who haven’t had much experience with it. It’s also a good idea to learn how to save more money and become more pennywise. Using coupons, looking for store discounts and sales, tracking our expenses, and utilizing a budget are skills many of us have learned to do without until recently. Once you become thrifty, it’ll be hard to go back to spending so freely.
Debt free, freeing yourself from debt. Whether this is a realistic and attainable goal is really dependent upon your financial and debt situation. The easiest way to living debt-free is to cut your spending and put the extra money in your budget towards paying off your debt a little at a time. The key is sticking with it.
Start investing; having an extra income or other investment can be your financial resolution. Even if you can only afford putting away $10 a month, you can still find cheap quality stocks or mutual funds one share at a time. They are a nice introduction to the investment game and a great way to begin to secure your future.
Keep track of your Tax record, this could be the hardest task you will encounter over the year but if you are using a computerized accounting program, this resolution should be pretty easy since the software will do the work for you. Enter your accounting receipts on a daily basis. Your software is only as good as the information you give it.
We all know how important business planning is, but it's easy to put off in the press of daily events. Hopefully this year end checklist has inspired you to get to it and made your business planning easier. Though goals take discipline and motivation, all you have to do is remind yourself how bad bringing on debt is and how nice it would be to be able to retire one day.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.
BANK LOAN VS VENTURE CAPITAL
Bank Loan VS Venture Capital
Before you choose whether to go get a bank loan or seek for a VCs, let’s make a quick comparison on both bank loan and venture capital. Bank loan require an APR which stands for Annual percentage rate. This is an interest rate quoted by bank in their loan document. On the other hand VCs doesn’t have one, which is equity while bank is debt. The APR for small business will depend on the length of time the company has been operating, the revenue, operating profit, net profit. Consistency makes the numbers more predictable and the bankers more confident they'll be repaid. That, of course, assumes that the market and industry are relatively stable. So bankers seek a guaranteed return on their investment (loan) in a business. Venture Capital however it’s a win or lose proposition. The either make a return because the business is successful and is later sold or it will go to the public, or they don’t because the business goes bankrupt or it shut down. VCs measure their returns as a function of the company’s future performance. Unlike in bank loan either the term or the repayment amount is known in advance.
The benefit on bank loan is that as you pay down your loan you build creditworthiness. This makes you more attractive to lenders and increases your chances of negotiating favorable loan terms in the future. While VCs can be passive or active, passive investor are willing to give you capital but will play little or no part in running the company, while active investors expect to be heavily involved in the company’s operations. Carefully consider whether or not you are compatible, as this person will own a portion of your business.
One of the most important tools when deciding on what type of business loan your company needs is research. Researching the different types of loans available to you and your company can save you money. Business loans are hard to get, but with the right combination of perseverance, passion, dedication, and conviction in your business plan, they are not impossible after all.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.
Why Do We Need a Business Plans?
Why Do We Need a Business Plans?
Business plans are very essential in putting up a business whether its big or small. Many people think of it as something you only do if you plan to apply for a loan or if you are looking for investors. Of course it's very important to have one for this purpose. However it's not the only reason you want to consider of not having one. Business without a plan is like travelling without a map or compass on your hand. Your business will need a foundation to start and it can be obtained from a good business plans.
Yes, you need business plans if you are applying for a business loan or if you are looking for investors. Investors and Bank always requires you to have a plan. They expect it to be the overview of your company. Your business plans will tell you if you will be approved or not. Make it as detailed and concise as possible. Running a business with a business partner also requires you to have a business plans because it will help you define the agreement between both parties. It will show that both parties has a clear understanding on what's going to happen. It also help to get everyone involved in your start-up on heading in the same direction including your employee, partner and even your family members.
Aside from your investors and partners business plans plays a very important role on you. This will be your guiding point in order to run a good business. This will establish business milestones and should clearly state the long term milestone for the company. It also understands the forecast of your company's staffing needs. So, that after completing your business plan you will not be surprised when you are suddenly short handed. It should also indicate the branding of your company as well as your potential target market.
Always keep in mind that in order to be successful, business planning is a must. There are so many benefits that can be obtain with the proper use of this. It will define your target market, determine your business requirement, identifies the main issue in your business, map out the whole business plans and more. People don't realize that planning is not just for start up, loans or investments. This will be your guide towards success. You must know how to plan step by step, think ahead, set priorities and manage your money.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.
Right Investor for the Right Business
Right Investor for the Right Business
We often asked ourselves how and where to find the right investors for our new business. Choosing the right investors is like looking for your perfect mate, finding the right financial adviser can be tricky, especially if you lack experience. It helps if you know what you're looking for: Finding an adviser you trust and respect is critical, experts say, so don't just sign on with the first person you meet. But how do you really know the right investor for your business. The first investor that you will consider is your family member; however at some point it’s not always a good idea. Money matters are a very serious subject, and that is one you want to avoid if you want to have a good relationship with your family. Put your relationships first and look elsewhere for business investments. So, who do you look for? Here are some people or group of people you may want to consider.
Lending Clubs, this is the easiest way of getting financial support. Lending clubs are made up of a bunch of investors that loan out money to people and businesses with good credit. They are a great resource and should be the first place you look.
Commercial Banks, if you are putting up a new business you may want to consider asking for a bank loan. Before doing so you will need to have put together a solid business plan before you ever hope to get financing.
Partnership, if you are having a hard time looking for a private investor to finance you, you may want to consider looking for a partner. You may encounter a silent type partner whom they let you run your business or an active partner, who is very much involved in running your business. The best place to look for a partner is at chamber of commerce or you may want to join an organization or group of business minded individuals.
Angel Investors, One of the most common people that you will encounter if you are starting up a business. Angel investors are wiling to invest on small businesses. Angel investors will provide you with funding however; they will be in close contact with you to make sure that their investment is going in the right direction.
Venture Capital, most venture capitalist usually invests on established businesses but if you are able to convince them to invest then you should consider yourself lucky. However, if they say no, these people will able to refer with other private investors that are willing to invest on small start up business.
Remember that in order to find the right investor, you should have a very detailed business plan to present. Investors will provide funds and expertise, but they will not advise you on how to write a good business plan. The key is, don't be timid or afraid to ask. People will help you if you just ask and if you ask enough people you won't have any problems finding a private investor for your startup small business.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.
WHAT’S INSIDE YOUR BUSINESS PLANS?
What’s inside your business plans?
If you are starting a business, whether you are looking for an investor or financier or not, it is very important to have a business plan. Many business owners just jump into creating a business without researching and making a concrete plan. Inevitably, they soon find that they are out of money and have no time or clear strategies how to market their business. There are several things you should need to include on your business plan.
Aside from your business name, the first thing that you should put is the mission and vision of your company and your products and services. It defines what your business really is and what you want to achieve in your business. Second, are your marketing plan, target market and competitive analysis. On your business plan it should have a clear view on how you would advertise your products/services and how you will compete to other company. Third would be your Financial plan, a business can operate without budgets but its clearly good business practice to include it. With budgets, you will be more likely to achieve your business objectives, you will make more reasoned decisions and you will have better control on your cash flow. Lastly, it should also include the people behind your company so that investor would know whom they are dealing with.
Now that you have a business plan, make it a part of you by knowing and understanding it clearly. Build upon it continuously and refer to it often, so you remain on track to building a profitable business.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.
Sharp Turn to the Right with the Help of Angel Investors
Sharp Turn to the Right with the Help of Angel Investors
You have a business enterprise, but its just not taking off the way that you planned or business has slowed down significantly after a stellar few years. Along the way though, you have been able to learn much more about what the market demands and can amend your approach with great success with the right funding. Sometimes it’s necessary to reinvent your business to fit the marketplace and take advantage of what you have learned to date through missteps or experience. It’s a sharp turn to the right that can help a business take off again and angel investors can help you turn the wheel with angel funding.
Sometimes entrepreneurs have a good idea that needs tweaking, but they don’t know it needs adjusting until they enter the marketplace. In the age of technology, customer needs can change rapidly and you must be able to accommodate those needs through innovation. Business based on excellent ideas aren’t always successful after a period of time simply because they need a new look, a new approach, a refined marketing plan or an adaptation.
All too often businesses are driven into the ground because owners refuse to acknowledge that the economy has shifted or that their market niche has changed expectations. It’s a case of stubbornness in many circumstances because it’s tough to consider changing a brand that has time, money and effort behind it. However, your brand won’t do you much good if your company dies a slow death because you failed to listen to what the market is telling you.
Turning Towards Success
Reinventing your business with the help of angel investors can change a struggling business into an adaptable one that is always one step ahead of customers. Angel investors don’t just fund brand new businesses. They also fund existing businesses ready to change course to take advantage of a changing economy or a changing marketplace. Companies reinvent themselves every day with enormous success and many are companies well recognized – Apple computers, HP, GE and others. However, you don’t have to be a major corporation to understand that market adaptability is one of the most important keys to success.
Unfortunately, there are thousands of entrepreneurs who refuse to admit they need to pivot in place and head in a new direction. The advantages of adapting is overshadowed by the fear of failing, so the business is allowed to die a slow death while reinvention ideas are left languishing in the dark. It’s not for lack of funding either. Angel investors are investors willing to accept risk for financial gain and are looking for companies that have a new idea and a new way to penetrate a changing economy. Angel investors, like venture capitalists and equity partners, embrace innovation, new approaches and new ideas.
Reinvention can take many forms.
- Technological changes in products or processes
- Response to competition in the form of new products or services
- Upscale reinvention of brand
- Change or expansion in products or services in response to changing customer base
- Expansion in the definition of the niche market
Angel investors are more than willing to invest in companies that are ready to take a new path. In fact, you have a lot to offer angel investors right from the start because you have a business track record. The fact you are currently in business is a major benefit and selling point and often enough to get an investor’s attention sooner rather than later.
Pivoting on Core Competences
If you have a desire and need to take a sharp turn to the right in your business, the first step is developing a business plan around your core competencies. Those core competencies are the strengths of your business around which you will pivot your plans for new products or services, increased market penetration or business expansion based on a reinvention platform. Clearly explain your new idea, track record, the problem you will solve or the market you will serve, the benefits offered to the marketplace, the revenue opportunities and how reinvention strengthens and rather than weakens your enterprise, and angel investors will have plenty of good reasons to join your efforts.
More detailed information and useful advice can be found at http://www.funded.com. Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check out http://www.funded.com