4 types of angel investors who might fund your business

As a business and personal coach to realtors, Suzanne McGhee knows here way around Angel Investors…

Entrepreneurs always have new ideas in their minds. They need to implement these ideas, but to do so you need investments. Business angels are a great source of money for your business. Here are the major types of angel investors who might provide a fund for your business.

1. Friends and family

You can get money from your friends and family. They are a very reliable source of fund. However, you should make sure that you don’t mix up your personal relationship with your professional one. You should tell your friends and family in advance that there is no guarantee that your business will be successful. So, they can take their decision whether to take the risk of giving you their valuable money or not.

2. Individual angel investors

It is a tough way to find financing as most of the time they want to stay anonymous. You should look for an investor who is interested in the business niche you want to work in. These investors will understand the business model and the value of your project.

3. Angel investor networks

These networks let the investors stay anonymous. They have a team who manages the investments. These networks can provide investments that are of higher amounts and well managed.

4. Fundraising advisors

It is an expensive way to get fund. They take between 5% and 7% of success fees. They even take monthly fees to cover their costs. You should understand the terms and conditions well before taking money from them.

Investors are interested in people as well, besides the business idea. So, it is very important that you build up a good relationship and expand your network. The investors must be able to trust you. As one of the most recognized names in the Okanagan, Kelowna realtor Annette Denk knows how to network and grow influence inside the business arena.

4 benefits of participating in business competition

Business competition helps people in many ways. It’s a great opportunity for entrepreneurs. Many entrepreneurs have great ideas, but they cannot transform the dream into reality because of lack of money. These are the benefits of participating in a business competition.

Gain skills

You can gain lots of skills by competing. Many skills are considered during the selection process. Making a business plan, budgeting, accumulating resources, presenting the plan, etc. requires lots of knowledge and skills. You need to put in tremendous efforts into the competition.

Expand network

During the workshop that takes place before the competition, you meet lots of people from different industries. It’s a great platform to network. You can exchange business cards in case you need their help in future. During the workshop, you should talk to as many people as possible and exchange ideas.

Get fund to start business

If you become the winner, you will get the money to fund your business. It’s a great way to start seeing your dream come into reality. You might end up being a successful businessman and have a bright future.

Gain recognition

If you win the competition, you will gain recognition. Many industry leaders will get to know you and offer you opportunities to expand your business. Even if you don’t win in the competition, the industry leaders will appreciate your effort, and you may have lots of exciting opportunities in future.

If you have a good business idea and want to implement it, then participate in business competitions. It’s educational, fun, exciting and rewarding as well.

5 tips for getting fund for your startup

Entrepreneurs have excellent ideas and then know the ways to implement their ideas. But it needs a lot of money to start a business. At one time, people had to knock on the doors of various investors hoping to get the money to fund their projects. But now, there are several other options available to fund your startup as well.

Consider your niche

There are grants that are specifically for certain niche. You should first define your niche. Then you should find investors who are interested in funding projects in your area. You should be able to tell the investor how your business idea is different from others.

Find a grant

Grants are a great option for financing your business. It is provided to you free of charge. But it’s important to locate these grants. There are places where you can find information regarding these grants. You will get grants that are specifically for your theme of business and your demographics. Grants are available for minority business owners, single mothers, women, and more. You will need to write an extensive proposal to apply for the grant.

Participate in a contest

There are many contests available now that encourage innovation. These contests offer a huge amount of reward every year. Some contests are for specific industries.

Crowdfund your idea

There are sites that provide a platform for businesses to find funds for a new business. Crowdfunding is very popular now and very competitive as well.

Take a loan

You can get a loan from a bank or other financial institutions. They offer various kinds of loans like microloans, disaster recovery, etc. There are banks that offer small business loans even for commercial real estate projects like these.

Today, it is not that hard to start your business. You need to give some effort and look into the right places to get fund for your business.

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