Whether a small business is just starting up or is in the process of growing, funding is required at all stages of development for small business entrepreneurs. For a new small business in Ireland, obtaining initial funding, or seed capital, through traditional investment sources can be incredibly difficult, due to increasingly strict lending criteria.
Ultimately, unless a business has been operating for a while and is profitable a bank or a traditional financial institution will not be interested in lending that business any money. This is simply because the risk is far too high. Many brand-new businesses fold within the first few years of operation and a bank that looks at the financial health of a company solely, will not take the risk.
If you are an Irish entrepreneur looking to fund a business or have a great business idea, then this fact can be frustrating. You may believe that your business will be successful but without the actual trading proof the banks will not show any interest in helping you financially. So, what other options are out there?
Instead of borrowing money from banks and requesting government funding, small business entrepreneurs are beginning to take the initiative to find their own private investors through online investment networking websites. This is the best option for Irish entrepreneurs that are just starting and do not have a long-term business history.
Private investment from angel investors is a kind of investment that entrepreneurs can leverage by releasing some equity (or ownership) in their business to an outside investor. In return they receive the money they need to either start and fund their business idea, or enough money to expand their business. This raises the question, how much money do you need?
The very first step that an entrepreneur will need to do is create a business plan. This plan will help guide the entrepreneur as to how the business will operate and what the running expenses (and income) is projected. Without a business plan an entrepreneur will not have a solid understanding on how well their business will likely run.
After creating a sound business plan, small business entrepreneurs can assess the amount of seed capital needed to start the business, or how much venture capital is needed to expand their existing small business. From there, entrepreneurs are better able to find the right private investor for their needs. At this point, Ireland Investment Network can help entrepreneurs find the perfect angel investor to supply private investment funding online.
When entrepreneurs use our network, they can expect clear listings posted by angel investors that will provide an overview on their specific sector(s) of business, potential investment amounts, and desired location of the potential business venture within Ireland.
This makes forging connections between small business entrepreneurs and angel investors a simple matter, because you can specify your business interests. And because our network hosts thousands of eager angel investors and entrepreneurs based in Ireland and across the rest of the world, finding the right business partner is easier than ever.