4 Ways An Angel Investor Can Benefit Your Startup

If your startup business needs a boost to propel it forward and into the market, an angel investor may be able to give you the financial help you need to make your dream a reality. While it will take effort, a great pitch, and a stellar business plan to garner their attention, once you do, you have much to gain from their knowledge and experience besides just financial capital for your company.

Consider your angel investor the sounding board for the big decisions you have to make. They will help you keep your business on a path to success and give you the confidence as well as accountability every step of the way. Your startup business could benefit in a big way from an angel investor as you’ll find they have much to offer in relation to running a solid business.

Advice and Guidance

Angel investors are a wealth of knowledge and can provide that guidance you need to steer your startup business in the right direction. While their business funding may allow you to open your doors, their continual advice will help you maintain your operations for the long haul. They most likely have assisted others in their business ventures and can help you avoid mistakes that might be costly to yours.

Networking Connections

Having a partnership with an angel investor immediately gives you access to a flurry of network connections that can help you accelerate your business. They know other investors as well as individuals that may be interested in joining forces to help get your business off the ground, giving you the opportunity to advance in the market.

Marketplace Awareness

Along with their industry network, you’ll also be able to take advantage of your angel investor’s expertise when it comes to knowing the market. They most likely will have intimate knowledge about your competitors and what trends are making waves this season. They can allow you an inside look at how your startup business can reap the rewards of similar strategies and gain you valuable market share in the process.

Creditability

Attaching your startup business to an angel investor can work wonders for your reputation. It can add instant creditability and make others stop and take notice. Angel investors are well known in their community, and you will be too as you attach your business to their name.

Working with an angel investor can allow your startup business to flourish beyond just business funding with them. You’ll have access to them, their contacts, and their generousity, making you a little wiser about the market and how you can succeed in it.

 

More detailed information and useful advice can be found at Funded.com. If you need to access our network of angel investors or a business plan for start-up funding visit  Funded.com

Four ways to secure the nod of angel investors

Securing an investment from an angel investor is considered as one of the most difficult aspects of establishing a business startup. For many, this is even harder than coming up with a good idea for a successful business venture.

Fortunately, there are numerous angel investors out there who can provide financial support to business startups that have potential to make it big in the market. But for entrepreneurs, the common problem is not finding them. Rather, they have a hard time securing the nod of these angel investors. Here are some ways to improve an entrepreneur’s pitch in order to be able to secure investments from angel investors:

Know the audience

A business pitch should vary depending on the character of the potential angel investor. Entrepreneurs should not rely heavily on a “standard pitch” and develop something that could connect more to the possible partners. A pitch should vary depending on various factors such as age, gender, background, and knowledge on the specific market, among others.

Be in charge

Business owners must show to their potential angel investors that they are the ones in charge of the startup. One can get the trust – and later on the deal – by showing that he or she can effectively manage the business to make it successful. In order to do this, business owners must show their expertise on the market as well as exude confidence that the venture will succeed.

Entrepreneurs, however, are cautioned not to show too much confidence on the business. After all, potential angel investors prefer realistic figures over imaginary ones.

Present relevant information

During presentation of business pitches, a number of business owners often start by presenting too much information as regards the market and the business operations itself. Most of the time, this approach is seen as a move that often ends the potential deal. Rather than presenting too much information, entrepreneurs must stick to basic data that will inform angel investors about the market and keep them interested.

Among these data include the current status of the market, as well as the basic figures concerning the business such as the capital and potential revenue in a matter of years.

Be practical

Finally, business owners must keep it practical when presenting before potential angel investors. While it is necessary to inform them of the business operations, going through every single detail of the business is not an appropriate content for a pitch. Instead, entrepreneurs should just highlight the said information and ask the potential partners if they want to know more about this.

More detailed information and useful advice can be found at Funded.com. If you need to access our network of angel investors or a business plan for start-up funding visit  Funded.com

Ways To Secure Venture Capital for Your Business Startup

For most business startup owners, one of the most difficult aspects of their job is the task of securing venture capital. And while there are many available sources of funds out there, we have to realize that there are also a huge number of business startups that are competing for the money.

So what elements of businesses guarantee financial support from investors? Actually, there isn’t. Most of the time, the chances of securing a venture capital greatly depends on the situation, in addition to the characteristics of the business and the venture capitalist. However, despite this reality, there are some things that a business owner can do to increase his or her chances of securing financial support from venture capitalists.

Among the most important pointers that a business startup owner must remember is the need for him or her to be prepared with what’s going to happen.

Establishing a business is not as easy as coming up with an idea that will entice a large market. In addition to passion and dedication, a business owner is expected to be knowledgeable with every single aspect of his or her business. Thus, before approaching a venture capitalist, it’s important for owners to know their businesses.

This is important because it would prepare them for all sorts of questions that may arise during a presentation for potential investors. Likewise, a full understanding of the business would enhance the viability of the business plan, therefore increasing the chances of getting financial support.

Aside from being prepared with all the questions that a potential investor may ask, business owners must also have some knowledge on the people that would be the receiving end of their pitches.

Sometimes, owners tend to contact every single venture capitalist in the country. And while this increases your chances of securing investments, this also increases the amount of time that you spend looking for money. As they say, time is gold. So why spend a lot of time when you can do something much better?

Instead of calling every single venture capitalist in the planet, try to look into the list and study your chances of getting support from every single person in it. Doing this would make you realize that more than half of the people in your list would not even read your request because they are not interested on the concept of your business.

There’s no single advice that will boost your chances of securing venture capital. Nevertheless, like in any other field, being a little bit smarter will increase the possibility of getting financial support.

More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

Mistakes That Entrepreneurs Must Avoid When Pitching to Investors

Very few entrepreneurs are given a chance to pitch their businesses to investors. Unfortunately, not everyone who gets a chance to talk with potential source of financial support receives positive response. The reason: they often commit mistakes when pitching their business startups.

Here are some of the most common mistakes that business owners do when pitching their companies to potential investors.

Long elevator pitches

Elevator pitches are called as such because they are expected to be short – around a minute, which is the average length of a person’s ride in an elevator. And despite being called the “elevator pitch,” there are other instances when business owners are required to be brief when introducing their companies to possible investors. These include chance meetings in cocktail parties, meetings, or even introductions between common friends.

Such cases, which often happen in informal settings, are not boardroom meetings. And while investors may be interested in the pitch, talking about it for more than a minute or two is not appropriate. Doing so may put a bad impression on the part of the investor, therefore losing a possible deal.

Business owners must keep in mind that they should save the talk during an actual pitch.

Long presentations

During the actual presentation of the business, PowerPoint presentations are often considered as God-send tools. It provides the people around the room some visual information that could pique their interest on the topic being presented.

However, business owners must keep in mind that PowerPoint presentations are used as support and are not meant to be the star of the show. Therefore, entrepreneurs must be able to limit the length of the PowerPoint presentation so as not to bore potential investors.

These people want business owners to talk about their business startups and not just read from a prepared presentation.

Made-up proposals

Business owners want to impress potential investors. However, putting wrong information on the investment proposal, for instance blowing up the exit figures to impossible proportions, often raise eyebrows of investors.

Entrepreneurs must remember that investors value business owners who present them with the reality more than those who make-up information just to impress them.

Early discussion on valuation

Investors often turn their backs on business owners who start they pitches with valuation. Before doing so, business owners are expected to introduce first the business and its operations. Investors are there to provide money, but they would rather hear about the business first before getting information on the valuation which is, technically, their expertise. There is no need to walk them through on this process.

These are just some of the things that business owners must avoid when pitching their businesses to their potential investors. Following this would make them one step closer to getting some financial support.

More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

How Do You Know Your Business Idea is Good?

Investors want to fund good business ideas. That’s a broad statement because what seems like a good idea to me may be different from what seems like a good idea to you. So many ideas never seem to go anywhere. Some are just so uninspiring that they can’t seem to get the attention of anyone, much less investors. You can even write a whole business plan around a bad idea, leading to great disappointment when investors spot the fact it’s bad.

A good business idea is much more than just an idea. You can sit there all day and come up with ideas, but that doesn’t make them good. Good business ideas have certain qualities that differentiate them from other ideas. For one thing, a good business idea fulfills an unmet customer need, and it is often a need the consumer doesn’t even recognize yet. That may sound odd, but great ideas are often not great until someone invents a product or service.

Determining if a business idea is a good one requires more than just knowing the market will appreciate products or services. The idea must be feasible and realistic in terms of production costs, the time from funding to sales, profitability and safety. A good business idea is also one that can be brought to fruition because the entrepreneurs have the knowledge and skills needed.

There are more qualities associated with good business ideas, but one of the most important is related to innovation. Good business ideas offer a new twist on products or represent creative and innovative new products. The new twist or innovation should represent something that matters to people which means it brings some kind of satisfaction.

There are no hard and fast rules or magic formula to define a good business idea. Instead, investors will consider all of the qualities of the idea coupled with the marketing, competitive and financial factors.

  • More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

Five People You Should Meet Before You Start A Business

As a budding business owner who is about to venture into the entrepreneurship journey, one of the best things you can do to set yourself on the right path is meeting people. Of course, it is possible to start out all on your own but it is difficult to really go to far without having help from one person or another. The kind of people you meet and how they influence you will have a huge impact on your business and how successful it turns out.  The different types of people you will meet will help your business in so many different ways such as forming of partnerships, people who are connected to major resources you might need in your business, people with more experience than you do, and people with different connections and networks.

  1. Someone who is experienced in what you are doing

This category of people can be called the mentor. A person that has done similar to what you are doing. Such a person will have the necessary skill and required wisdom and experience,that you may not have yet and can successfully help you out with tips and advices that will help you solve some problems easily. In addition,this person may have a network of contacts that you can add to your own network pool.

  1. Mentor

For your business to be successful and gain ground in any area, you have to get in touch person who is well known and respected in the community. It may not necessarily be someone that is in the same field of expertise. It can someone you admire or has positive input and encouragement. You get the added benefits of having this mentor could give you a major boost and provide insight from being outside the box.

  1. Peers

These are the people in the same niche that you are in and within the same area. Although they might not be as much influence as the first two, but there is a very high chance that you can make use of their network of contact and they can make use of yours. You can share resources with them too since you will most likely face the same kind of problems.

  1. Local talent

You will need some skill-set that you may not have. There is a good chance that you may find someone or people who can assist you in one skilled area or the other within the vicinity of your business and may be willing to help or give you free advise.

  1. Business Plan Writer

Your business will surely need some capital for you to start with and no matter how frugal your start-up capital might be. Having an experienced business plan writer write your business plan has experience formatting your business plan in a way a bank or investor would expect to see. Having a business plan is a road map of what you expect and a guide for your business.

More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

 

 

Importance of a Business Plan

Before a business is able to commence on its operations, it is important to have some specific details about the business mapped out. This actually varies from size to size as it can be just a few sentences or even take over a hundred pages containing different formal sections, title page and table of content. Basically, a typical business plan has an average page range of 15 – 20 pages and if comprehensive, it should consist of three sections – The business concept, the marketplace and the Financials section. These sections are the further broken down into seven more components which are the business overview or summary of the plan, the business description, market strategies, competition analysis, design and development, operations and management, and financial information. However, it does not matter how long or lengthy a business plan is, what matters is, the level of importance that should be attached to a business plan should be high. In this articles we will be looking at the importance of a business plan

  1. A business plan makes direction of the business clearer

The main purpose of writing a business plan is to have a clear view of the business and what the business’ goals are over a period of time. Being able to have a clear view of the direction in which a business is headed helps understand what needs to be done to achieve progress for the business. Making business direction clearer may include things like business description and its services or details of the ideal target customers of the business.

  1. Planning for the future

Time is a key factor in the development and growth of a business and a business plan can effectively take time into factor to make forecasts on possible market changes, market trends and new innovations or directions to go through as the business progresses. Having a clear direction helps a business know how and where to start from but future planning helps to have an idea of what the business’ goals should be.

  1. Funding or financing purposes

A business plan, a comprehensive one, helps determine the viability of a business in terms of profit. By putting statistics, figures, detailed plans and facts in writing, it will be easier to convince an investor to fund the business.

  1. Attract people to join the business

A business plan is all a business owner needs to bring in partners, executive level employees or even secure supplier accounts. With a business plan, anybody who might be interested in the business can get the needed conviction and see the potential of the business and consequently become a part of it.

  1. Effectively manage the business

With a business plan, the organization is well structured and each management position gets their role mapped out. A business plan also makes it possible to monitor the progress of the business and check if the business is well on its course to meeting up with targets, operational milestones and goals.

The importance of a business plan is not limited to these specific points. A Business plan can also help you achieve other goals such as establishing  new avenues of product development, securing suppliers and defining alternative marketing strategies to engage customers. It is an important tool for every business owners and should not be taken for granted.   

More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

 

How Do You Know Your Business Idea is Good?

Investors want to fund good business ideas. That’s a broad statement because what seems like a good idea to me may be different from what seems like a good idea to you. So many ideas never seem to go anywhere. Some are just so uninspiring that they can’t seem to get the attention of anyone, much less investors. You can even write a whole business plan around a bad idea, leading to great disappointment when investors spot the fact it’s bad.

A good business idea is much more than just an idea. You can sit there all day and come up with ideas, but that doesn’t make them good. Good business ideas have certain qualities that differentiate them from other ideas. For one thing, a good business idea fulfills an unmet customer need, and it is often a need the consumer doesn’t even recognize yet. That may sound odd, but great ideas are often not great until someone invents a product or service.

Determining if a business idea is a good one requires more than just knowing the market will appreciate products or services. The idea must be feasible and realistic in terms of production costs, the time from funding to sales, profitability and safety. A good business idea is also one that can be brought to fruition because the entrepreneurs have the knowledge and skills needed.

There are more qualities associated with good business ideas, but one of the most important is related to innovation. Good business ideas offer a new twist on products or represent creative and innovative new products. The new twist or innovation should represent something that matters to people which means it brings some kind of satisfaction.

There are no hard and fast rules or magic formula to define a good business idea. Instead, investors will consider all of the qualities of the idea coupled with the marketing, competitive and financial factors.

More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

Angel Investors Offer More Than Money

Angel investors are known for investing billions of dollars investing in start-ups and have funded tens of thousands of small businesses. So it’s reasonable that entrepreneurs developing business plans will associate angel investors with money first. Yet angel investors have a lot more to offer business than just financing. They also have entrepreneurial skills, market knowledge and business savvy, which are all assets that new businesses can and should use to their benefit.

Angels spent considerable amount of time in a process called due diligence. They use their knowledge and business analysis skills evaluating business plans with two goals in mind: earn a designated return of investment and limit risk of loss. Investors consult with a number of professionals and get expert advice from a network of attorneys, accountants, business analysts and investor associates. For every entrepreneur initial rejection of funding by potential investor can also be an opportunity. Opportunity to learn from the reason of rejection, the business plan can be perfected for future requests using the information gleaned from the review process.

If the business plan is accepted, many angel investors offer time and advice as well as money. It’s not a case of interfering in the business or its management but rather a case of providing insight based on management and business experience. Most business owners welcome this insight as having enormous value. Angel investors giving feedback, mentoring entrepreneurs and promoting business growth are giving entrepreneurs assets that are at least as valuable as money for business growth. For some businesses, they are more valuable.

More detailed information and useful advice can be found at Funded.com. it offers expertise and assistance with developing and funding your concept. If you need to access a network of angel investors or business plans for start-up funding visit  Funded.com

Top 5 Most Profitable Industries

Top 5 Most Profitable Industries

The capability of entrepreneurs to effectively and efficiently manage their own businesses is among the requirements to succeed in this field. However, there are other factors that contribute to the actual results of a venture.

One of these, apparently, is the general performance of the sector in which the entrepreneurs establish their businesses. According to a new report, healthcare and the real estate sectors remain the most profitable sectors, comprising almost half of the list.

Despite this, what topped the list is something that is not surprising as deals with money – accounting and other related services. These are some of the most profitable sectors are as follows:

Accounting and related services

There is no denying that proving accounting and related services, such as bookkeeping and payroll services, top the list of most profitable industries at the moment. According to latest reports, the sector has a net profit margin of 19.8 percent – primarily due to high demand and low equipment overhead and equipment costs.

Legal service

Next to accounting, which is also not a surprise, is legal services. With the rise of legal issues arising both between individuals and companies, there is nothing new with reports that among the sectors that reap a big margin is the field legal service. The only surprise, perhaps, is that it did not top the list this year contrary to the last.

Oil extraction; Machinery rental

Tied on the third place are sectors concerned with oil extraction and the leasing/rental of industrial and commercial machinery equipment.

The high ranking of these two is primarily on the current policy that focuses on increased production of crude oil and the rising number of constructions and industrial development in the country in recent years.

Dental services

The fifth on the list, dental services, is quite a surprise. Who would have thought that a specialized sector would be able to compete with, for instance, industries dealing with oil extraction? On another thought, however, the number of people requiring tooth extraction – not to mention other related dental services – will remain a demand so long as the humanity survives.

Real estate leasing; Brokers; Medical service

Tied on the sixth to eighth places are the real estate leasing, real estate brokerage, and the medical profession.

According to latest reports, the improvement of the economy has resulted in the better performance of the housing market, thus the good profit margin of real estate brokers. Moreover, however, this has also pushed the profits of those engaged in rental services, the prices of which have shot up in recent months.

Meanwhile, doctors, as expected, are in the list – primarily due to the increasing population, and partly due to the issues on health and lifestyle that is affecting the new generation.

Other health practitioners; Management companies

Tied for the ninth and tenth spots are other health practitioners and management companies.

Dentists and doctors are not the only ones reaping the increase in profit margin in the past months. Expected to join them are other health practitioners, who are very much needed just like the doctors and dentists in this part of the world.

With the growing trend of businesses outsourcing management strategies to experts, those who have management backgrounds have jumped at the bandwagon and established their own companies that provide the current demand – for a profit, of course.

These ten industries are just some of the most profitable sectors that those who consider establishing businesses – or even just applying for a job – should think about. Runner-up include outpatient care services, schools, real-estate related activities, death care services, and mining support.

 

More detailed information and useful advice can be found at 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.Funded.com
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