| So you’ve got a great business idea, the | | | | because they’ve invested their own money, |
| motivation to succeed, and a clear vision of where | | | | they’ll be willing to put in the time and effort to |
| it’s going. All you need now is an investor to help | | | | make the business succeed and ensure their return. |
| you realise its potential. But who will be willing to | | | | Venture capitalists |
| invest? Well, quite a few people actually. | | | | Like business angels, venture capitalists are usually |
| Friends and family | | | | successful entrepreneurs in their own right. They too |
| Friends and family members will always be willing to | | | | will bring their years of experience to the table, and |
| help you out, and, if they can, won’t hesitate to | | | | quite often you’ll get more than one input – |
| invest. Enter this arrangement with caution though | | | | you’ll often get interest from venture capitalist |
| – while they may want to help and offer you | | | | firms, where a network of investors will pool their |
| advice, they probably won’t have the experience | | | | resources and their knowledge to make it a success. |
| to back it up and might not be too happy if you | | | | However, they often invest at a much higher level |
| don’t accept it. You’ve also got to keep a | | | | and usually don’t consider start-ups. But, as long |
| tight rein on your finances, as any overspending will | | | | as you’re a fairly developed high-growth |
| be duly noted. Don’t let money come between | | | | businesses looking for that extra push, you’d be |
| you! | | | | wise to consider them. |
| Business angels | | | | As you can see, there are a number of people who |
| Business angels can be a much more sensible option. | | | | will be willing to invest in your business. |
| They’ll be able to invest at a much higher level, | | | | Which one you go for will depend on your business |
| and can be a valuable asset to your business. Unless | | | | type, its level of development, the amount of |
| you agree to them being a sleeping partner, | | | | investment you need, and above all your |
| they’ll bring with them their years of knowledge | | | | preferences. But, while it’s obviously down to |
| and experience – as many of them will have | | | | you, always bear in mind the value that private |
| amassed fortunes from their own businesses, this | | | | business investors can bring to your business. |
| type of expertise and support can be invaluable. And, | | | | |