We’re In It For The Long Haul
We all know that the economy looks rather gloomy these days and, just to raise our spirits a little, the BBC recently reported that the economy isn’t expected to recover fully until 2012. Pundits don’t have much good to say about the near future and even though consumer confidence is starting to rise a bit, it’s easy to see that most people still feel skittish and nervous when it comes to what’s in their wallets.
But in this economic dark age, savvy entrepreneurs can still thrive. If you know where to look, you can still find ‘business angels’ who can lift your venture out of the mire of the recession and on towards brighter futures. These business angels aren’t the translucent kind with wings and halos; rather, they are angel investors—wealthy individuals who want to find a place in which they can put their capital and experience to good use.
Who are these business angels?
During these tough times, finding a bank—or even a venture capitalist—prepared to fund a start-up or new business is close to impossible. Venture capitalists usually represent a group of wealthy individuals or an investing institution, and they typically make investments that start at a minimum of £600,000. But business angels are independent, wealthy individuals who are investing on their own behalf. Usually, these business angels make smaller investments, in the £10,000–£100,000 range. This amount is often sufficient for the small business or start-up that needs just enough seed money to get it jump-started.
The great thing about finding a business angel who can help to fund your venture is that many of them have successfully built their own businesses from scratch. They know what it’s like to go through the tough early days of a business and, much like you, they are innovative risk takers. As such, their reasons for investing in your business often go beyond simple monetary return: they remember what it was like to be in your shoes and many of them invest because they want to see you succeed.
Are business angels difficult to find?
You might be thinking to yourself: “Well, all of this is great, but I don’t know any wealthy investors. Where am I supposed to find these business angels?”
The answer is simple: this is the twenty-first century, so you need to go to the same place that you find everything else—the Internet. Angelsden.co.uk offers small business owners and inventors the opportunity to promote their concepts to business angels from around the world to vie for their funding. It’s simple and easy to use, and has brought more businesses and business angels together in recent months than any other angel funding service in Europe.
Business angels will need to be convinced that your business is a reliable place for their money to grow. As when you find an investor through traditional channels, you shouldn’t expect to win business angels over with only your charm and wit: you must be able to demonstrate that you understand your business and its market, that you have a solid business plan, and that the niche that you will serve is strong enough and broad enough to survive the economic downturn.
Small businesses and start-ups, coupled with funding from business angels, offer a real lifeline to our ailing economy. By defying the odds and ignoring the black picture that the BBC statistics paint, these businesses could bring renewed prosperity and employment as they grow. A venture that has been created to weather the storm of a recession will no doubt flourish when market conditions revert back to something more business-friendly.
So forget the pundits and the boffins with their statistics and gloomy predictions: if you have a business idea with clout, visit www.angelsden.co.uk and ask our business angels for a little help. They just might give your venture the boost it both needs and deserves.
