New Business

If you’ve come up with a great new idea for a business, but don’t have the funds necessary to start it, there is help. Private investors, also known as business angels, are ready and willing to give you the money you need. They are entrepreneurs themselves and they’ve made their way in the business world. This is their way of giving back, of helping others who are just starting out. There are however, some things you must be prepared to show them. They need assurances that you are not just going to accept their money and take a nice long vacation on a tropical island.

So how can you convince them that they need to invest with you? Here are some things you need to have in place before seeking out a private investor.

• A business plan: you need to be able to show an investor a comprehensive plan that includes income and expense projections for the next 5 years. Make sure to list your goals, your mission statement, marketing plans, projected growth statements and budgets.

• Experience: you need to provide proof that you have at least some business experience. (No, Working at McDonalds does not count as business experience.)

• Desire and Commitment: Are you willing to do what it takes to make your business work? Are you thinking of this venture as more a hobby, and hoping that it succeeds? Investors will only work with serious-minded individuals who put their heart and soul into their business and have spent a lot of time developing a plan for its success.

• Potential: Does your business have good growth and profit potential? Is it in a ideal location? Selling bathing suits in Alaska would probably not attract an investor’s attention.

As you can see, private investors do their research before handing over their money to would-be entrepreneurs. As investors, they will have an active role in how your business is run and will want to be included in major decisions. When you succeed, they succeed! By making sure you have a strong commitment, a solid plan, and some experience behind you, the greater your chances of attracting a private investor to your business.

One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.

Article Source: ArticlesBase.com - Need Money for Your New Business? Consider a Private Investor!