Business_Angels_For_Your_Startup_Business

							Title:
Business Angels For Your Startup Bus
iness

Word Count:
615

Summary:
Setting up a new business can be a
daunting prospect. There_s the pos
sibility of failure, and with it, t
he risk of losing the money you_ve
invested in your company, as well a
s seeing all your months or even ye
ars of hard work go to waste. But,
 there_s truth in the old saying, _
nothing ventured, nothing gained._
 The biggest rewards accrue to thos
e who not only have a vision for th
eir business, but also are prepared
 to see it through and have the cou
rage of their convictions...
Keywords:
Business Angels, Startup Business

Article Body:
Setting up a new business can be a
daunting prospect. There_s the pos
sibility of failure, and with it, t
he risk of losing the money you_ve
invested in your company, as well a
s seeing all your months or even ye
ars of hard work go to waste. But,
 there_s truth in the old saying, _
nothing ventured, nothing gained._
 The biggest rewards accrue to thos
e who not only have a vision for th
eir business, but also are prepared
 to see it through and have the cou
rage of their convictions.

Nonetheless, it can be hard finding
 sources of funding for a new busin
ess. In many cases, finding a busi
ness angel may be your best bet for
 sourcing capital to start up a new
 company. But, let_s have a look a
t some of the other options availab
le to you.

First and most obvious, you may hav
e the available funds yourself. De
pending on the level of risk, you m
ay not feel comfortable dipping int
o your savings to fund a new busine
ss; this is a decision you will hav
e to consider long and hard. Howev
er, if you feel able to use some of
 your savings to finance a startup,
then so much the better.

Another option is to borrow money f
rom family or friends. If you_re d
oing this, the best and fairest way
 to get them on board is as investo
rs, making sure that they have the
chance to share in your success _ b
ut also warning them of the potenti
al pitfalls. Make sure they are cle
ar on the nature of the risk they a
re undertaking _ many friendships h
ave been broken down the years due
to money. It_s often a good idea t
o put your agreement in writing, ju
st so there is absolutely no misund
erstanding further down the line ab
out the terms on which you borrowed
 the money. It_s up to you to be h
onest about your chances of success
 and to give them all the informati
on they need.

The second major type of financing
is acquired by taking out a standar
d loan. This may be from your bank
 or another lender, and can include
 bank loans, overdraft facilities,
or credit cards. Taking out one or
 several loans is not a bad idea, b
ut you must make sure you_re not ta
king on more debt than you can affo
rd to repay.

Take a careful look at repayment te
rms and interest rates, and make su
re you_re getting the best possible
  deal before signing anything. Eve
n if your fledgling business is doi
ng well, excessive loan repayments
can be a heavy drag on your profits
, so do the sums beforehand, and ma
ke sure you can afford to repay the
  debt even in a worst-case scenario
. You might also want to think abo
ut remortgaging your house, or othe
r investment properties you may own
. The same rules apply; make sure
you don_t take on more debt than yo
u can afford to repay. Taking out
a large loan or remortgage can forc
e you to make an honest appraisal o
f your business plan; sometimes it
can be just the reality check you need.

If you don_t have any equity with w
hich to take out a loan, then there
 is another option, called the Smal
l Business Loan Guarantee scheme; i
t_s a business loan 75% guaranteed
by the Government. You are require
d to contribute just 25% of the sec
urity, so this is an excellent opti
on for anyone who doesn_t have a hu
ge amount of capital with which to
set up their small business. Howev
er, it_s worth noting that these lo
ans do have an administration fee a
ttached, and the rate of interest i
s normally relatively high _ some 1
.5 to 2.0% higher than base rate.