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HOW DO PRIVATE BUSINESS ANGELS WORK-

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									?Private business angels are usually entrepreneurs themselves who have already
amassed a fortune practising what they preach. They know what to do and how to do
it, so are the perfect choice if you not only want the capital, but the knowledge and
experience to really make that capital work for you.

Private business angels work by investing their own money in small business ventures
that are looking to generate revenue. They provide the funds, the knowledge, the
contacts and the experience to make the business successful, and in return ask for an
equity share. This can simply be a share of the profits, but more often than not it's a
stake in the ownership and control of the business as well.

They're always on the lookout for an investment opportunity, and are especially drawn
to high-growth businesses where the risk is high, but so is the potential for returns.

Angels can often be found in networks specialising in connecting businesses with
potential investors. One of these is a site called the Entrepreneur Investor Network
.au which specialises in private investments in Australia.

They'll often be approached by many businesses seeking investment, and will have to
filter out the ones that offer potential from the ones that don't. Once they've found
their newest investment opportunity, they'll provide the funds and will usually work
very closely with the business itself to ensure its success. They've invested their own
money, so are just as motivated to help it succeed.

Some business angels prefer to be sleeping partners - they provide the capital but have
no say in the business or its direction. But, many prefer a more hands-on approach, as
the input they provide can make the difference between a business succeeding or
failing. When their money is on the line they'll be more likely to offer help and
support to make sure they don't lose it!

Private business angels can really be the key to the success of any business. They
work by choosing the most viable business opportunities and making it work for them
as well as the business itself, and can be an invaluable asset to any company.

								
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