Business Loans Pt. 3 -- Investors

This main link page from Inc.com was really helpful and will probably spawn quite a few future posts about information I found there. The focus for now however is another way to obtain a type of "loan" for your startup company I suppose -- in the form of an "Angel Investor." You can check out the breakdown on the links to articles about these types of investors here.

An angel investor is basically what is sounds like -- an investor who can help you float the finances for your company singlehandedly, or help fund a large portion of the startup. Guy Kawasaki defines them as "high net-worth individuals who invest in entrepreneurial companies, usually at an early stage."

While it may sound like a pipe dream, these types of investors are actually readily available out there. Inc.com compiled a lists of regional networks for these angel investors at this Angel Investor Directory. The directory lists a large amount of companies in virtually every region of the United States, with their desired investment field, and desired investment range of funds contributed.

Most of these "investors" are not single individuals however, but a group of 6-12 wealthy individuals who can all chip into a large pot that they use to fund upstart companies. These groups have weekly or monthly meetings where they review their portfolios and review potential businesses. In most of the investing groups profiled, they only actually invest in a few out of the thousands that are submitted but those that are recieve money in excess of hundreds, if not millions of dollars, to get things going.

Finding such angels is a bit of a chore, as one can imagine. Networking is most likely the best way to get involved with those investors, as the investors can become more importantly, advisors as to how you should operate your business or help out with potential roadblocks (since most of them have been there before when running their own companies).

There's a ton of different ways to get the money you need to start a business, the ways of going about them are just all different. Deciding how to go about starting your business' funds can help you prepare for your future earnings, and stop worrying about your current ones.