If you are looking for money, mentors or motivation about growing your business this may be the most important article you will read this year. If your desire involves looking for a cash injection you had better make sure that your business is a great business idea to start with.
Generally investors won’t give you money unless this ingredient is at the fore. Investors come in different packages. There are “Business Angels” and “Venture Capitalists”. The best way to attract them is when you have a successful business or idea. Whether it is a start up or well established business is irrelevant most of the time.
Investors only want to know that if they invest in your business they will get a great return.
Angels are business people or investors with business experience who specialise in helping and advising startup business for a price. They are smart people experienced in what will work in business and will not give out money unless they think they are on a winner. Investments range from a once off payment of $10,000 up to $100,000.
Venture Capitalists on the other hand are larger investors. They look at a minimum of $2 million over a period of time with injections of $200,000 to sustain the growth of the business. They don t often invest in start up businesses unless they have a substantial control in the financial situation and can see a substantial return on their investment within 2 years.
The minimum you will require to attract either of the investors mentioned is a detailed business plan outlining the reasons why the business is and will continue to be a success. Don’t go to them if you haven’t thought it out properly.
Tips to consider
Starting out in business is very risky. With over 75% of startup businesses failing in the first 3 years please consider these tips before you start:
· Be in a business you are passionate about
· Be experienced and know all about the business you want to be in
· Be prepared to work hard and long for the first 3 years
· Only involve people you trust who can do the tasks you direct them to do
· Be prepared to have sleepless nights
· Have a good mentor who is accessible
· Be prepared to take risks
By: Dan Cavalli
About the Author:
Last 5 posts in Business
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