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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