New Investors Don’t Pay Old Investors

Business owners everywhere want to fly with the angels – private investors that is.  But more often than not, goals have been destroyed because the business owner either wasn’t prepared or didn’t know what to anticipate when looking for investor funding.  Here is what you need to know to be able to fly with the angels.


No Earnings – Seeking private investors:  Are you just starting your business?  If so, you must understand that private investors have a very low possibility of getting a organization with zero revenues.  They only want quality tasks with knowledgeable fundamentals that are fluid, that have a powerful control group, and that have a clear cut quit technique.  So the first class to understand is that private investors want to see some record.  This shows to them that your item is eye-catching to real clients who will pay real cash.


New Investors Don’t Pay Old Investors: So to get your organization started you will most likely end up placing your own cash into the organization or search for the help of family associates.  Most business owners then fall into the snare of thinking that an angel investor will come along with funding that will allow the organization to pay off the loans from family associates, as well as the cash the business owner himself has spent.  It’s better to understand now that private investors don’t want to take out other investors.


They want Private money lender to see 100% of their financial commitment put into the organization to create it develop.  So the class to understand here is to pay attention to your organization development technique, and that usually indicates re-investing all the earnings and income from the organization returning into the organization.  But that’s really one of the important factors to development – re-investing your earnings returning into the organization.


Angels Take Their Time: The next thing cash buckled business owners must recognize is that there is an occasion intensive procedure engaged with angel investor funding.  If your strategic technique does create it into the hands of an angel investor group, it will usually go to a choice panel first where only the best strategic plans conference the requirements of the angel investor group will have to be able to be provided to the group.


The choice panel may take 30 to 60 days to evaluation your strategic technique and accept it for the financial commitment group to actually if you are looking for private investors.  The real financial commitment group may only fulfill once a one fourth, so the business owner may be looking at another 60 to 90 day wait before even getting to be able to existing his strategic technique.  So if you are looking for resources to fulfill next week’s paycheck, this is not the place to be looking.

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