Starting Small Business requires some amount of capital along with appropriate knowledge in the respective field. But usually Early Stage Ventures do not have the required finance or the expertise to start a new business. The advent of business angels has therefore created new dimensions for startup ventures and provided them with a ray of hope.
Various
Business Investors have started showing interest in new projects and are willing to not only invest finance but also share their expertise, skills and experience with these fresh talents. Usually entrepreneurs who have a proven track record in the industry or have been CEOs, senior mangers etc with big organizations form an
Angel Investors Network and share their talent, experience and of course capital with budding individuals.
Such people are also known as
Business Angels since they help numerous people in
Starting Small Business which can further grow into a large organization. But before investing they follow a methodical approach which includes looking into parameters such as quality of the management team, business that have barriers, individuals that have begun to engage with the market and have the desire and scope to grow large.
Compared to our western counterparts who have innumerable
Business Investors that offer financial help to new small scale and large scale organizations; angel investment in India is yet to come of age. It sometimes becomes a tedious task to locate a trustworthy and professional angel investors network on which the whole responsibility of the business can be given. Moreover it is also necessary to find out what they want in return! Usually investors ask for a small percentage of the profits which is nothing compared to the long term benefits the business might receive in future.
These are some of the basic guidelines that you might require while choosing business angels:
Be very sure about their area of interest and the fields that they have been associated with previously. It must coincide with your business interests. Its always advisable to seek help from angel investors who have prior experience in the same field.
A reliable and professional angel investors network have been entrepreneurs themselves and have already made a niche for themselves in the industry. So try to obtain as much as possible from them related to various business strategies.
It is equally important to build up a strong clientele list. Therefore they should be willing to share their contact list and networks with you and help you in acquiring productive clients.
Since these investors have more business experience than you, they should participate in the day-to-day affairs of the business and spend valuable time. Important and valuable tips are also necessary whenever required.
They should teach you efficient monitoring of the business, tips to improve on quality, time management guidelines, increased productivity techniques in less time etc.
Many new industries in fields such IT, BPO, healthcare, media and entertainment, retail, agriculture, food processing, education, financial services, travel and tourism, hospitality, biotech, pharmaceutical and life sciences have emerged due to the support offered by
Business Investors. The Indian economy as a whole has also benefitted from them with more and more new industries cropping up in varied sectors and adding to its growth. Such networks are considered a blessing in the true sense which has increased earning potentials of various individuals, helped increase employment and has given shape to the dreams of many.
