Monday, February 9, 2009

Top 5 Reasons Why You Can Attract Angel Investor Capital In A Recession

Today companies raise investor capital from private funding sources such as private investors, accredited investors, venture capital funds, and alternative funding sources.With all the news about the capital markets tanking, why is this still a good time to raise capital?

As the global economy evolves, interest rates shift, and competition for the best deal escalates, investors seek out opportunities in emerging industries, and niches.Investors seek ways to multiply their money.Every big "trend" where great wealth was created happened by the market makers and the early adopters of that "new" market opportunity.

So how can innovative companies attract Private Equity investments from investors in this recessive market place?The Top 5 reasons are:
1.
Sophisticated investors that haven't yet participated in angel investing have realized that ALL investment classes are risky.They think: "With the collapse of the stock market and the real estate market, might as well invest in something I know is risky but I have potential to get 4-8X more ROI!" Both new and experienced early stage investors are getting involved with Angel Investing as a way to rebuild their damaged portfolio.

2.Angel Investors already know the early stage company's value is at the bottom and should only go up.And if the company gets into trouble, they can more effectively impact the company's operations and resulting increased value than they can with a public company.The investors can help with their experience and rolodex to grow the company.

3.Market Makers are going to be looking for new places to put money and companies that can do a Direct Public Offering through the OTC BB market, with the new controls recently implemented, will be the next favored market place because it is easier to directly reach investors to create the demand for that stock.Furthermore, it provides access to follow on institutional investment capital and offers an easier exit for private investors.

4.With the advent of strong investor groups forming and investor portals designed specifically for investors to be able to identify, investigate and invest in early stage companies the way eTrade provides that access to public companies, individual investors can have a community to collaborate with on early stage companies.OurFundingPlanet is an example of how entrepreneurs and investors can connect in an online community.

5.There are 4 Sectors that investors will be looking at because companies in these areas will be part of the driving force in our economic recovery.Businesses that:


a.

Offer feel good products and entertainment, because when people are worried, they want simple pleasures that make them feel good.

b.Provide an improved efficiency to a company's operations because businesses are looking for a way looking to increase profits


c.

Deliver bio-med and life sciences innovations to the market or


d.

Provide a solution for the energy market - either as alternative energy or direct profits from carbon-fuels consumption


Besides private equity investment being available for qualified early stage companies, there are many alternative lenders flush with cash to help early stage companies finance their contracts and cash flow.

However, although we are bullish on the availability of capital, the criteria to measure the worthiness of a business to receive capital are slightly stricter.The money available is smart money.Competition for the available capital is stronger than ever.If the company isn't properly prepared or if the CEO is seeking the wrong type of capital, their efforts will be futile.Independent reviews of an entrepreneur's business plan and capitalization strategy can save CEOs time and money as they enter these capital markets, as well as, give valuable insight into what motivates investors.

Over the past six years she has developed Launch Funding Network, a rapidly growing and successful consulting practice serving entrepreneurs by connecting them with capital and resources.Further she acquired the long established Network of Business Angels & Investors, and turned it into the most active angel group in the Southeast.Through her publishing house, KYRMedia, she shares her knowledge through education of a new generation of savvy Angel Investors and wise entrepreneurs.


About the Author

"Where Qualified Investors and Capital Connect with Innovative Companies".

Network of Business Angels & Investors (http://nbai.net), and NBAI Private Equity Investor Forums."How to Pitch to Investors" free webinars at http://findinvestorcapital.com and more info at www.launchfn.com


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Tuesday, August 12, 2008

The Benefits of a Work at Home Business

Over the past few years, a lot of things have changed and one of the most noticeable changes is the increase in number of people who work from their home. The development in technology has helped a number of people to find different ways for earning decent amount of money.

As a result of the development of technology and Internet, a number of people work from their home. Some people run their business from their home whereas some people offer some services from their home. Apart from the decent income while enjoying the comforts of the home, there are a number of benefits associated with home-based businesses.

Set your own prices: While working at home, youre your own boss and you decide on your own whether its profitable to work on a particular project or not. You enjoy the flexibility to set your own price in order to earn decent amount of money for the efforts you put in. You get to decide whether a particular job is profitable or not. When you run your business from home, you determine the cost of the project in the first place and this is done by analyzing the efforts, skills and the time required for completing the project.

Once youve determined the price, you inform the other party about the cost of the project and you start with the project once the other party has accepted the price. By setting your own prices, you make sure that you dont get underpaid. As an employee working in some company, you dont enjoy the flexibility of determining the price of the project and at times, youre even asked to complete a task even if its not profitable. So, running home-based business offers an advantage of determining the cost to make sure you get the amount that you deserve.

Spend more time with family: Theres nothing better than spending time with family. While working as a salaried employee for an organization, youve to follow the office timings and when some important project comes up, youre even asked to do over-time. This decreases the amount of time spent with family. If you work from your home then you get to spend more time with your family as you dont need to follow the office timings.

You work as per your convenience and the flexible working hours allow you to spend more time with your family. While working from home, you enjoy the flexibility to adjust the working hours if your family needs attention whereas you dont enjoy the flexibility of adjusting the working hours while working as an employee for some organization.

Less stress: Another advantage of working at home is that an individual running home-based business faces less stress when compared to an individual working as a salaried employee for an organization. While working for an organization, youre asked to meet the strict deadlines, take on complex projects and to do so, you spend more hours in office without paying attention to food, entertainment, social life and this affects health. There have been a number of cases in the past in which the person was admitted to the hospital because of the burden of the office work. In home-based business, youre your own boss and you decide accordingly whether youve the time for a project or not.

Enjoy the profits: As an employee working for a company, youre asked to complete complex projects without any increase in the salary. Complex projects require advanced skills, experience and time and so, companies charge more for them. However, the incentive is usually not shared with the employees. In other words, individuals who complete the complex projects are usually not given any special incentive when compared to the individuals working on the simple projects.

So, usually you earn same amount of money whether you complete a complex project or a simple one. However, the situation is different in home-based business. As youre your own boss in the home-based business, you determine the price according to the complexity of the project and this way, you can make sure that you earn the amount of money that you deserve.


About the Author

If you are ready to learn how to

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