What is a Small Business Entrepreneur Business Angel ?

What Is a Small Business Entrepreneur Business Angel?
By J. Biznet

Lots of people visualize a small business entrepreneur as either a real go-getter or someone who is either a dreamer or has an unlimited bank balance.

So what really is a small business entrepreneur?

A true entrepreneur is someone who is a both a go-getter and also a dreamer. Entrepreneurs aren't limited to just business. A genuine entrepreneur is someone who possesses the ability to visualize.

They can visualize something that isn't yet available. They are usually 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 money (hopefully!) in the project before seeking to use other people's money to go to the following stage of a project.

However, with big projects they need financing to make sure they area real possibility now we need to include the personal trait of salesmanship. They must be capable of making other people, namely investors, 'see' what they see.

The people who are more than likely to invest in these fledgling enterprises are usually business entrepreneurs and either come with an unlimited bank balance or have had excellent success in past projects.

These kind of investors are also commonly known as Business Angels.

Finding the right Business Angel to invest in your business enterprise isn't simple as there aren't that many readily available and anyone who takes a high risk in these forms of investments often seeks a high return on their invested capital.

Being a small business entrepreneur seeking financial resources for the project, you will need to realize and accept some terms and conditions from a business angel that you may possibly dislike initially. Being a small business operator, the percentage on the capital borrowed could be very high and you will need to be aware that many of them will demand a share of the project despite the loan may be repaid.

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

In Australia, the business structure in the small enterprise is usually as a company and having its own Australian Company Number (ACN) because the business structure is one that limits personal liability in the event of failure and because the structure is one that allows for business growth and control.

Business Angels are entrepreneurial business people first of all and bear little resemblance towards the perceived notion of kind and caring entities. They didn't make their fortunes because they are soft and gentle individuals.

They're called Business Angels because they're willing to invest where traditional money lenders fear to tread. They arrive on the development scene when a project requires extra funding and so they provide the necessary financial resources at a time it is needed.

That is not to convey they're bad people because they definitely are not. They're business entrepreneurs too who have designed a business structure that makes them money. As a small business entrepreneur you will appreciate their investment and expertise.

A small business entrepreneur often needs a business angel to provide the start-up capital when starting or expanding a business.

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Learn From My Experience - First Year Tips For Small Business Entrepreneurs

Learn From My Experience - First Year Tips For Small Business Entrepreneurs
By Keith M

The Number One first year tip - it's ALL about finding customers and keeping them happy

Whether you are at the feasibility, seed, or launch stage, you need customers!

If someone is showing interest but is not asking about prices, then you may have a new hobby, which is nice, but not a business.

Why? Ideas and plans are a dime a dozen. Cashflow is King. A potential customer is proof positive you may have found a genuine demand or gap in the market - but only when they start talking price.

A vision means squat without a plan for customers.

"A customer base equals capital"

Attracting investors will be much easier if they can see you are already generating a cashflow.

Also customers will attract people interested in working with you - and eventually you will need a team to go anywhere significant.

A customer means you are not dreaming!

Don't wait for qualifications

You could be forgiven for thinking that in the 2010's you need a string of qualifications and / or an MBA before making a move. It's not the case. Examples abound and if necessary you can hire to cover the gaps. Rather, try to emphasise product, ideas and team.

Which book learning are we skipping over here? What are some of the nice to have's you might defer?

In the initial stages of a business there are marketing skills - be content with seeing the original gap and creating a product to fit. Then finance skills - skip high finance and stick to the basic organisation of personal and business finance to cover risks, and finally time management skills where the essentials can be mastered quickly.

Later in the development phase we have operations - leadership, management, IT, property, culture/psychology, teamwork, loyalty, communications and regulations - the list goes on.

While it may seem heresy to some, the fact is there are many successes in business who started young with no management training.

Beware Franchising

Starting out under the protection of a franchise is a seductive option. Beware! While it may be a way to start-up with less risk, pay particular attention to:

� The franchise sale

Franchise operators are very good marketers - of their franchises. Be wary that you are not sucked in too much by the promises and pictures. Seriously, it's their job to sell you, just make sure they have a viable plan and you can sell their product.

� Your independence

The bottom line is that you have decided to become an entrepreneur, for reasons which quite likely include working for yourself, and by signing up with a franchise you have immediately given that independence away.

Will you be happy working for a head office? How much input to the business do you really have? Have you just bought yourself a job?

Take a real close look at your marketing plan

How are you going to find and reach customers? Your first job is to run like mad just to find them:

First, are you in an active sector and do you have a ready path to market? Where are you sourcing your leads - today?

Watch out for your own psychology. When starting out you may want to just go with the first half decent opportunity you come across. Relax; try to look at things objectively.

Beware of the "1% of the market is huge" syndrome. Yours may be a billion dollar market, but how do you get any of it? What do you think the competition is doing right now?

Any idea of the cost of acquisition of a new customer? Will your model develop repeat customers? If not you will be forever selling, and this is not a good place to be.

Most forms of marketing except word of mouth are very expensive. When starting out there is no doubt the best marketing model is word of mouth.

Branding. Despite the hype it's nothing new. Don't even think about mega-brand style exposure. A start-up is about a reputation, person to person sales and keeping a handful of customers happy.

What is the shelf life of your idea? How are you going to protect it in the internet age?

How smart is the business model?

A business model is the way we do things - how we find and reach customers, differentiate the business from the pack, price, sell and deliver our product.

But there is more. Other desirables include a residual structure, one that compounds growth, and which is leveraged either in time (employees) or money (loans).

Is it going to be a dynamic business or a job?

Realistically - are your finances strong enough for the first year or two?

Being an entrepreneur is a gamble and you must be prepared for the worst if it happens. How do you view losing money? Perhaps try investing on small bets in the stock market and see how it feels before investing in your own ideas.

Don't get into debt you cannot handle. We should be bold but not take risks. Avoid betting your lifestyle, limit the investment to what you can "afford to lose", then do everything to make sure that does not happen.

Entrepreneurs should always have backup plans. Not everything will work by any stretch of imagination.

How many hours are you working?

Have you really planned your diary? How will you fit everything in? Not all of us can survive on 4 hours sleep per night.

Remember the working rule - hard and smart.

And if you do work all hours, what is your effective hourly rate? Planning any time off?

Do you have a good business partner?

If you aspire to anything other than a micro business, you will have to think "team". The synergy gained outweighs potential downsides. While a committee of one gets things done, eventually you need others in your corner.

Are you ahead of trends?

No business can ignore trends. Try to have an eye on the picture three to five years ahead.

As a qualified accountant with a strong interest in new ventures Keith is well placed to advise on building for future growth.
He's an expert in Excel and financial modelling. Find out more at http://www.teamasiaconsulting.com or http://www.introofferteamasia.com

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Small Business Ideas For First Time Business Entrepreneurs

Small Business Ideas for First Time Business Entrepreneurs
By Jan Smith

If you have recently become unemployed during this current financial hiatus, you may be thinking of starting your own small business and are looking around for some viable ideas. Life in the commercial world is considerably different to living life as an employee and just because you are currently unemployed is not a good reason to start your own business.

To be a successful commercial enterprise requires an entrepreneurial outlook combined with vision and a burning desire to succeed. This burning desire to succeed is balanced by reaching self-imposed goals based on profits or losses in a balance sheet. It is these profits or loss figures that will determine success or failure of your endeavours.

If your commercial endeavors are either a success or a failure, it will impact on your life far more than anyone realises. If you succeed in commercial life and make heaps of money, your life will change. If your commercial enterprise loses money, it will impact your life far more than anyone will usually tell you. Commerce is a gamble on which you can control the odds more in your favour if you are resourceful, punctilious and cautious. It is a balancing act and is not for everyone.

Franchise

Starting a commercial enterprise today can be fast-tracked by buying into a franchise. This method for a start-up small business is very popular today because it comes with a mentoring side from any good franchise offer.

The mentoring side means that the franchisor (that is, the person who owns the franchise) is supposed to work with you, often supply the necessary supplies for the enterprise and to teach you the things that you need to know.

The reality of this type of business model is often very different to what actually happens. I have worked with many small businesses over the years and the percentage of happy franchisees (that is, the people who have bought into this commercial model) is very different to what actually happens. Many franchisers don't live up to their contractual agreements.

If you are considering this type of popular business model as a start-up for an occupation it can be one that is not the one I would personally recommend.

My Recommendation

My recommendation for you if you are looking for a small business as a first time entrepreneur would be to start something very small - like a 'fish and chip' shop or a convenience store. Start something that is needed in an area that doesn't have one but has the population to use your service as a convenience.

I also recommend learning how to do your own accounting books through night-school while you study the location that you want to set-up your small business in. And talk to people about your proposed idea because it is their feedback that will guide you in assessing your idea for a popular and profitable enterprise.

The best Small business ideas can be found by looking to see what people need and then servicing that need ethically. Honesty and perseverance combined with hard work and diligence will ensure success. For more business advice please visit http://smallbusinessadvice365.com today.

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Tips For The First-Time Small Business Entrepreneur

Tips For The First-Time Small Business Entrepreneur
By Chase Crawford

Are you a first-time small business entrepreneur? You have probably already realized that it is not such an easy thing to start a business even if you have spent months or even years planning it. There will always be some things that you will miss or not expect. To help you a little bit with your endeavor, I have written here some tips and suggestions.

Unless you came from a family that has been running a business for years, your first hand experience with managing a business might be very limited. That is why any help that comes your way should be very much appreciated. This is because not even an MBA degree will be enough to ensure your success right away.

So before I ramble on and get into off topics, here are some entrepreneur tips for every beginning small business owner.

Find a hungry market and satisfy its needs or wants.

Keep in mind that often the success of a business does not lie on how unique or novel a product is but how well it solves the problems of a specific market. For example if your market is the owners of purebred dogs that have long and flowing coat, then one business that you can get into is pet grooming for this kind of dogs. The key is to find a market that has a defined need and then create a product or service that will satisfy that need. You do that and I guarantee your business will soar.

Find a mentor or a business coach.

Look for someone who has been through what you are just about to get into and have become a great success story. This way you will be guided accordingly, allowing you to commit only very small mistakes and avoid the disasters which many other unguided entrepreneurs might experience. While usually you will have to pay for the services of a business coach, it will surely be money well spent. Just think of it as an investment in part of your own business.

Learn to focus.

As much as possible be laser focused when it comes to your business. This is because it is a common fact that a typical small business entrepreneur would jump from one opportunity to another. The problem with this is that they do not get to finish a project. They are seldom able to push through a business into completion because they are distracted with the promise of success with another new opportunity. Avoid doing this if you want to really experience a successful business.

Get ready to get a loan.

Unless you are born rich or you only need very little capital to start your dream business, you might have to apply for some business loans. Just be extra careful when you are getting a loan especially if you have to provide collateral, which is a normal requirement for most loans. You do not want to get more than what you know you will be able to pay.

There you have it. These are just some of the important tips that any small business entrepreneur should know about even before he actually starts on his business. Just learn first all that you can about starting a business and get all the help that you can get just to make sure you can make it even on your first try.

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