Читать книгу Starting a Business in 7 simple steps - Alex Ritchie - Страница 25

Business angels (angels) and venture capitalists (VCs) are third parties that will invest in your business for a return on the profits. They’re looking for businesses with high growth potential that will provide them with a good return on their investment (ROI) and in general, will invest substantial amounts of money. There are a number of hoops you’ll have to jump through, which will vary depending on the investor. You’ll need a watertight business plan for the first three to five years of business, details of your supply chain, customers and finances (see Step 2), and you’ll need to prepare proposals and pitches (see Step 4).

Angels tend to invest smaller amounts, typically from tens of thousands up to around £250,000. They’ll take an interest in you and your team as well as your idea but will have an exit strategy and time frame in mind. They often bring contacts and networks and may request a non-executive director position.

VCs typically look to invest millions for a share of the company. Invariably, they will only invest in businesses that show potential to grow very quickly, with strong management teams and proven business models. This option will probably not be right for you at this stage but there’s no harm in thinking big.

It’s best to go through established angel and VC networks or agencies. There are a number of these agencies available for different sectors or locations, so use the internet to research them. Their fees or commission on the investment will vary. It’s worth checking out www.angelsden.com.

Registering your business

You have a vision, you’ve identified your aims, market and USP, you’ve thought of a name and secured funding, and now you’re ready to register your business. In the UK, this is done at Companies House. The legal term for this is incorporating your business. It’s a fairly simple procedure which can be done online, and all of the information you need can be found at www.companieshouse.gov.uk. If you’ve already appointed an accountant, it may be worth asking them to incorporate your business for you as this is usually a service that’s offered by accountants for a small fee.