Creating a new business can be a tough journey. Doing so while working full-time may seem tougher, but this route actually offers several benefits. You can continue earning money to put towards your startup. But even if you only work an hour a week building your company, you still need a business plan.
Before you start contacting local angel investors, you should understand what they look for, so you make sure you are approaching the right angel groups and providing them with the information they need to make a “go” investment decision in your small business.
Angel investors get their name from their supportive nature. Instead of expecting an immediate return on their investment in a new business, angels instead take a percentage of the company, later enjoying the profits from their investment as the company grows.
As crowdfunding gains popularity, more options are becoming available for small- and medium-size businesses.
If you are seeking financing to start your new business, it's important to understand the difference between the two basic types of financing: debt and equity. Here's a closer look.