Tuesday, August 9, 2011

Small Business Entrepreneurs Need Business Angels for Guidance

Some people think of a small business entrepreneur as either a real go-getter or somebody that is either a ‘dreamer’ or possesses an unlimited bank balance. So what really constitutes a small business entrepreneur?A true entrepreneur is someone who is a both a go-getter and a dreamer. Entrepreneurs are not restricted to just business.

A genuine entrepreneur is someone that possesses the ability to visualize.

They can visualize something that isn’t yet available. They are often both a dreamer and a go-getter to create something available that isn’t available.

They dream that something can be achieved or is achievable and go about making it so. They start projects off and therefore are willing to invest their own personal money  in the project before seeking to use other people’s money to go to the next stage of the project. But, with big projects they need financing to ensure they are a real possibility now we have to include the personal trait of salesmanship.


They must be capable of making other people, namely investors, ‘see’ the things they see. Individuals who're more than likely to advance these fledgling enterprises may also be business entrepreneurs and either come with an unlimited bank balance or have had great success in past projects. These kind of investors are also commonly known as “Business Angels”. Determining the right “Business Angel” to invest in your business enterprise isn’t simple as there aren’t that many readily available and anybody who takes a risky through these forms of investments often seeks a high return on their invested capital.

Being a small business entrepreneur seeking financial backing for the project, you will have to realize and accept some terms and conditions from a “business angel” that you might dislike initially.

Being a small business owner, the share for the capital borrowed can be very high and you will need to be conscious of most of them will require a percentage in the project despite the loan may be repaid.This is their business insurance to protect their capital and to make it grow.


By percentage of the project, some “business angels” require as part of the initial investment, a continuing and permanent percentage of the corporation.


Australia for example will likely require the structure of the small business is always for a company with its own Australian Company Number (ACN) for the reason that business structure is a that limits personal liability in the event of failure and because the structure is certainly one which allows for business growth and control.

“Business Angels” are entrepreneurial business owners first of all and bear little resemblance to the perceived notion of kind and caring entities. They didn’t make their fortunes because they are soft and gentle individuals. They are called Business Angels because they're prepared to invest where traditional money lenders fear to tread. They arrive on the development scene whenever a project requires capitalisation and so they supply the necessary financial resources at a time it's needed. That isn't to convey they are bad people because they definitely are not. They're business entrepreneurs too who've developed a business model that makes them money. As a small business entrepreneur you will appreciate their investment and expertise.