Don't Know How To Get Your Business Started? Consider a Private Investor
If you have been struggling with ways on how to get your business started and don’t know your next move, consider partnering with a private investor.
A private investor, also called a business angel, can get you the help you need in order to get your business off the ground, and running smoothly. They can also help you start earning a profit much faster than you could on your own. How? There are several ways:
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Provide you with start up capital – investors will usually give you up to $1 Million. This will enable you to buy needed equipment, office space, employees, machinery, etc.
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Skills and Knowledge – private investors will share with you their many business skills and pass on their knowledge to you. They are entrepreneurs themselves, and have made their fortunes. They know what works and what doesn’t. This greatly cuts down on your learning curve, and you can avoid making the same mistakes they did.
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Business Contacts – They will give you access to their rolodex. This is an invaluable tool for building your own relationships and contacts. Get to know these people, network with them and help them get business. They in turn will become your next clients, customers and referral base. This alone is an invaluable tool.
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Mentor – Private investors will work with you one-on-one to ensure you are doing the right things. They will answer questions, give advice and help you make major business decisions.
Private investors can be found in any country around the globe. They are wealthy individuals who want to give something back to the world of business. They are also investors, so they are looking for a way to build their net worth even greater. Don’t be surprised if they want part ownership of your business and expect a high rate of return.
The benefits of having a private investor for your business far outweigh the risks. They will have your business running smoothly, and will leave you with more knowledge, skills and advice than you would ever receive at university getting a business degree.
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What type of investor is best for this type of start up business?
I am interested starting a online artist promotion website. I need a estimated $80,000 for advertising & development costs. I have a high potential for profit estimated $7,400 first year, $29,000 second year. I have been told to go through private investors & angel investors. My business plan is already wrote too. Which type of investor do you think would be best for me?
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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.
Umm,.. . why don't you ask the many investors that you see?
I would agree with Eddy that many investors are probably retired or close to it. Additionally, investing carefully was not the most likely key to their success, because most just pick simple mutual funds. Instead, I assert that spending carefully and SAVING so that they could start investing when they were young was the big factor.
Another possibility is your brother could form an S corp and give you a stake of shares of the business for an investment. I sold 2 20% stakes of my company and was able to raise around $20,000 to get started, while myself keeping the majority of shares. At the end of the year, if the company profited $100,000, shareholder A gets $20,000, shareholder B gets $20,000, and I get $60,000. You could negotiate the stake based on specifics to your business venture.
Out of curiosity, are you going to have the clothes made overseas? If so make sure you look into apparel quotas imposed by the US govt.
You are correct that no one would want to pay $50 per share for a stock that they could buy for $40 per share on the open market, but when someone sells a put option they understand and accept that (1) that may happen and (2) the decision is up to the holder of the option.
You should also understand that it is quite likely that the person who wrote the put option did so as part of a spread. For a fairly simple example of a spread trade I did earlier see
http://messages.yahoo.com/Business_%26_Finance/Investments/threadview?bn=4686677%23optiontradestraderecommendations&tid=3274&mid=3274
In that example I bought AMGN stock for $62.50 per share when it was trading for less on the open market, but I still ended up with a small profit.
lets say shares cost $1000 each, meaning the NAV (net asset value) of each share is $1000
so when each investor paid $2000 they each got 2 shares.
On september 1st the value of the fund is $11,000 or $1,100 per share. Investor A takes out his money, he sells his shares to someone else for $1,100 per share or perhaps somehow he can just take out his $2,200. Then what would remain is a fund worth $9,800, with 8 shares, each worth $1,100.
I will review your exec summary on the 23rd, free.
I suggest you need no investors but a good IT team who can work
on spec if they believe.
Some investors want a share in the ownership which means a share of all the profits.
Others just want to receive a steady income. They are the ones who loan you money and get 7% interest; or the ones who buy bonds that your company sells…they also would pay 7%..
Generally a stock split will happen for one of 2 reasons:
1) the company pays a regular dividend, but doesn't want to pay one this time around. They would then call the stock split a stock dividend, but essentially they are the same thing.
2) If the stock price is above what the company considered their optimal range. For example, if Company A feels their stock trades best at a price between $15-$45 then they will leave it alone. If all of a sudden the stock is trading for a long period of time at $70, the company would split the stock to bring the price back into the optimal range.
Signs of a split: if a company has a regular dividend coming, but earnings are down this year you may see a split instead of a cash dividend. Also if the company stock is trading much higher than its averages have been for the past few years then a split may be on the horizon as well.
Hope this helps!
No investor will talk to you unless you provide them with a valid business plan. Go to http://www.sba.gov , http://www.score.org or http://www.bplan.com for sample business plans and instructions on how to write a business plan.
Then, 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.