Angels Flying Close To The Ground With Money For
YOU!
by Barbara Tomlin, aka Barb T., New Mexico
USA
Editorial Note: DO NOT SEND FUNDING QUERIES TO BARB TOMLIN OR WESTWARD CONNECTIONS — We
are not in that line of business. However, we can help you put together the
type of business plan that will attract the funding you need.
This article
is provided merely as informational source for our readers. Barb writes
on
diverse
range
of business
subjects from
first hand experience. She takes care in providing
additional resources for your continued research. Please do not contact
Westward Connections with your funding opportunities or needs. Read Barb's
article, Funding
Your Business Dream, for more ideas on financing your business.
During your childhood days you probably learned pennies
didn't really rain from heaven. But what if I told these days
it's the angels stepping forward to provide funding for small
businesses? Would you believe that? Well, it's true. Angels
are flying closer to the ground today than you might expect
and there may even be one waiting for you in your community.
How would you find such an angel? First, you've got to
know what to look for. Angels who fund businesses are
typically individuals with discretionary capital who prefer
to invest in them over the traditional, impersonal
alternatives offered today. These angels are willing to risk
safety for higher rate of return on their investment.
Some angels are wealthy; others who are not tend to pool
their funds with investors sharing the same investment
philosophies. Their "pools" are typically lead by
an accountant, an attorney, a financial planner, or
successful business owner. That is not to say that all of
them participate in pools. Some just happen to be in the
right place at the right time with the right amount of money.
Most angels do have first-hand knowledge about the risks of
entrepreneurship or extensive knowledge about the individual
seeking the funding.
For the entrepreneur seeking under $2 million, an "angel" may very well be the answer to finding
money without losing control of the business in the process.
According to the National Venture Capital Association, angels
invest over 10 times the amount invested by venture
capitalists in business startup and expansion each year.
There are over one million "angels" in the United
States now. Some invest only a few thousand while others
invest over $1 million in one project. The true
"angel" is not thinking about taking control of
your business; he or she is investing for the higher return
on investment (ROI).
Finding prospective angels may be easier than you think.
Attracting the right "angel" to your project,
however, is another story. First, make sure you have a viable
business plan. Then prepare a "summary" to show
your prospect. When you find someone indicating a sincere
interest, have him or her sign a non-disclosure agreement
before handing over your business plan for review. Because
"angel activity" is not regulated, it is in your
best interest to run a due diligence on the prospect. Find
out where his or her money comes from and how secure the
source is. Make certain there are no hidden agendas. You
don't want an investor who will finance you just to generate
a tax loss. You want someone who will stick with you through
thick and thin.
How do you find an angel? Well, aside from discussing the
possibilities with your accountant, attorney, financial
advisor, or business consultant, you need to network within
the business and financial community. If you are the shy type
but find you can afford outside professional marketing
assistance, contract a consultant with expertise in helping
businesses find money; you will have to pay a finder's fee,
but the difference will be worth the time saved or the
possibility of not securing funding at all. That person will
also be one to show you how to talk directly to the "angel" so you can increase your possibility of
winning his or her confidence. The angel must feel
comfortable that YOU will take care of his or her investment.
Angels keep a pretty low profile and tend to invest within
their geographic territory. It's likely if you find one who
"brags" about lending money, that's all he or she
really does. Your safest approach is to not reveal
proprietary details about your business until:
- your "gut" approves,
- your attorney approves your non-disclosure agreement and
your prospective angel has signed it,
- until after you have met the angel in person, and
- after you've peformed the due diligence.
These are the kind of angels entrepreneurs not only pray
for but FIND here in America so get up off your knees and
prepare yourself to meet your personal financial angel
today!
URL: www.westward.com/library/angel.htm
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In preparing your marketing program, be sure
to take a closer look at today's generational groups:
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