WHAT ARE BUSINESS INVESTORS?
Business investors are individuals, typically entrepreneurs or former executives themselves, who provide funding for small business start-ups. They’ll do this in exchange for a stake in the company and the hope of a high return on their investment, and usually expect a degree of ownership or control over the business.
Business investors will typically provide funding when you may have been turned down elsewhere or if you don’t have the security to offer banks. They provide a valuable link between friends and family related finance which can’t always provide enough capital, and venture capital firms which won’t fund “modest” amounts.
Investors have a keen eye and are always on the lookout to spot the next big investment opportunity. Their primary goal is to maximise their return, so won’t be adverse to risk or taking on a more hands-on approach. Because they’ve got a share of the company and invested their own money into it, they’re motivated to make it succeed and will provide a lot more help and support than if finance was sourced from traditional avenues.
They’ll often bring their own knowledge, experience and contacts to help the business, all of which can be invaluable to its success. Many will have secured their fortune from their own business ventures, so will have a wealth of experience to offer.
Unlike a loan from a bank, finance from a private business investor can’t be repaid by a specific date or have interest charged on it. It’s usually paid in dividends, the amount of which will depend on the profitability of the business.
Business investors are looking for long-term investments that offer a high rate of return. Because they bring knowledge and experience as well as money they can be the ideal choice of raising capital, and small business ventures would be wise to consider them.
One of the best websites in this regard is entrepreneurinvestornetwork.com.au, which aims at uniting angel investors looking for business investments in Australia with budding entrepreneurs in the country.Log on to the website today. You will not be disappointed.
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