Angel investor?
I am looking to start a business and have never searched out an angel investor before. Does anybody have any advice or insight? Where could I find one? Any tips to know when negotiating an agreement? More details: The business is an arcade similar to Dave and Busters. I have great credit, I'm in the Air National Guard, I currently have a job selling insurance over the phone for State Farm, and I've run a painting business the last 2 summers that grossed $60,000 for both summers, which I had around 5-8 employees at any given time during the operation of the painting business. I have great reference letters and reference numbers if needed. I am 21, and I realize this may be a problem, as I am still in school, and have almost attained a degree in business and administration. I have a detailed business plan worked out and I am just looking for financing avenues besides the obvious bank loan. I also have $15,000 saved up for startup (not much, I know!), with no debt. Thanks
Public Comments
- Sweetie I can't help, But just wanted to wish you luck, Sounds like you are going places. Keep the faith you will get there.
- Try http://www.ventureworthy.com/ or http://www.prosper.com/ Good luck - it sounds like you're on the right track. It's hard to find that financing but if you're persistent I'm sure you'll manage.
- First off, good luck. Secondly, angels don't care so much about the business plan as they do who you are and who your clients are. Because you are starting a "retail" environment, you're going to have a hard time convincing them you have a client base already, so you want to show them that you can make them money. After all, that's why they are in this -- not because they care about you or, honestly, your business. Show them you have done your homework on similar ventures and you have a very concrete plan in place to succeed financially and managerially. Study up on leasing any equipment that you need and talk to as many wealthy individuals in your surrounding area as you can to get money scrounged up from them instead of angels. Write up a good set up warrant agreements and an excellent exit strategy and it sounds like you'll be on your way. Then check out the wikipedia article on angel investors to guide you to a number of associations to whom you can present your idea.
- Go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor to review your business plan and discuss various loan options available to you. SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA). SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.
- A lot of times business owners underestimate the true weight of strong business credit. Strong implies undeniably sturdy. Well-built, demonstrating strength, are both synonyms for strong business credit. Do not forget that lenders look for only the top performing companies to lend to – why would they take the unnecessary risk? If your companies business credit in not top notch then it is probably lacking strong business credit. With that said, do not think that your business must be the biggest on the block. On the contrary, small and well articulated businesses sometimes have a better chance at financing compared to the Goliath down the street. Strong Business Credit is measured through the business credit score reported at D&B (through the use of a Paydex Score) and, more importantly, it is measured by the business credit profile of the business. Search for companies that can help. Google or Yahoo "strong business credit" (just like that in quotes). Sincerely, Ilya Bodner Initial Underwriting Group
