Typically, the best angel investors for very small businesses are investors that do not generally have a very high net worth or a large amount of money to invest. This is primarily due to the fact that these investors are not considered to be accredited under the rules and regulations outlined by the Securities and Exchange Commission. As such, they have a much more vested interest in the success of your business as the years go by. Additionally, these investors are looking for an extremely high return on their investment due to the fact that they are probably going to invest a significant portion of their equity into your business with the intent of generating both a positive stream of income from dividends coupled with capital appreciation. As such, you should give a substantial amount of consideration to the individual angel investor that you choose to work with as it pertains to your very small business.

When you are seeking only a small investment into your business, it may be in your best interest to work with local investors that have held themselves out as individuals with capital via your local chamber of commerce or business association. More often than not, the individual funding source that works with you and your company has a substantial amount of experience as it relates to your particular industry. As such, and as we have mentioned before, you may be able to benefit from their years of expertise as it relates to developing or expanding your operations on an ongoing basis. Additionally, because you are working with a small angel investor, they are going to want to have a more hands on approach as to their investment. This is something that you need to take into serious consideration when you are working with a small business investor that does not have a lot of capital. We have produced many other pieces of writing that has touched on this subject, and we will continue to discuss working with smaller angel investors as time progresses. HULT PRIVATE CAPITAL

In closing, when you are working with a smaller business investor it is extremely important to note that you may need to give up more equity and control than you think due to the fact that this individual is heavily and personally vested in the success of your company. It is imperative that when you are working with an angel investor that you never give up more than 51% of your business to a third party as they will then be able to take control of the business at anytime if you are not meeting specific milestones as it relates to their business investment.

Matthew Deutsch is a prominent business plan writer. His work has been included in nine books pertaining to this subject. Additionally, Mr. Deutsch has written extensively on subjects regarding entrepreneurship, small business lending, angel investing, and other related topics.

 

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