8September 2009
Angel investors are a new phenomenon in Australia and are looking for start up companies to invest in. Just like venture capitalist, angel investors are looking for small business start ups with big potential and big returns on their investments. They are typically individuals who are secret in their dealings, making them difficult to find.
With loans difficult to find, small business owners are looking for alternatives to raising capital. The normal sources for small business start ups like venture capitalists, private equity firms and IPO’s are sparse and difficult to find. This economy has changed the playing field making it very difficult to find start up capital.
Small business owners are often their own biggest problem in raising money because they have a go it alone mentality. They often feel that no one can understand their business the way they do and miss the opportunity to surround their self with talent. Small business owners can help themselves by adding a board of advisory with experience. Adding former CEO’s, managing directors, bankers or board members from other companies shows a willingness to listen to new ideas.
The best thing that small business owners can do is to get outside of their own mind and ask for help. Someone from the outside can often help you see things you are too close to see. Be willing so spend money to get your business ready to raise money. When you look for people to help your business, determine what knowledge that person can bring to your business.