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Getting the capital necessary to start a business is not always the easiest thing in the world to accomplish. The recession has wiped out many of the loans which might have been given out from lending institutions. Of course, one of the main ways that startups have been able to get their money in the past has been through private investors. These investors are not looking to make a loan. They are more interested in purchasing a part of the burgeoning business so that they can see a return on their investment. With the poor returns many have seen from the stock market, it seems that angel investing is seeing an upsurge.
The year 2009 saw an increase in investors for some 57,225 companies to the tune of $17.6 billion. About 359,480 individuals gave the money. The numbers are growing for the year 2010 and 2011 is expected to see even more growth in the investments individuals are expected to make. To make sure that you are able to see a portion of this money, it is imperative to first know where to look. You will also need to have an impeccable business plan out together. Last, but not least, you will need to have a realistic amount that you are willing to ask for even if it means having to ask several different people.
Where to Look
Finding the right angel investors is not always easy to do. It is the reason why some professionals have created services that will help you to find the angel investors you will be able to use to get the money you need. These professionals help to create networks that include investors from different areas of business. They will help to point you in the right direction so that you will make sure to pitch your business plan to the right people. Along with these angel investors, many are partnered with business to business media providers that can help match you with appropriate business service vendors.
Putting Together a Business Plan
The right business plan will make all of the difference in the world. You will need to be able to show those looking to invest in your company everything that they will get when they invest in your company. The business plan should include everything from the amounts that you will need to spend to accomplish certain tasks to the best ways in which you will be able to meet the growing needs of your company and your industry. They want to see that you are not only planning for how to get started, but for the future of your business.
Ask for the Right Amount
Always have a number in mind when putting together a presentation. While you may not ask credit card processing companies to give you everything you will need to get started, you can ask for enough money to handle certain things like a deposit for merchant credit card processing services. Having a realistic number in mind will help you to know exactly how much to ask for and it will help for the investors to decide whether they want to invest or not.
