What is a business angel?

The Investor Perspective ....

One of the major reasons potentially good businesses fail is that they are under capitalised. Even a small capital injection can turn a good idea into a successful venture. Not only that, small business people often need advice which isn't always readily accessible.

An angel investor not only provides much needed development capital, they also contribute their business skills and contacts. Most small business owners need assistance in some facets of their business.

For a retired person such a project means continued productivity in the work force which consequently benefits the economy and the country. An early retiree may consider to 'buy themselves a job' with part of their lump sum settlement. Corporate investors can also utilise this register.

You can also team up with other angel investors to form an investment group which will spread the risk and provide a variety of skills to a growing private firm.

The extent of a Business Angel's involvement in the investment venture is entirely their choice. This will be one of the criterion we will use when choosing who to introduce.

• A Business Angel may want a lot of involvement in the business in which they invest, others may prefer to he a mentor only.
• Other Business Angels may nominate a business consultant.
• Some Business Angels may invest in several companies, others may focus on one long term project, or just invest in one for a short time, or several over a period of years.

A central register like this can ascertain the criteria for the investment and match that with the business opportunities. You must decided what types of industries or ventures interest you, the level of involvement you require, the business experience and expertise you bring to the deal, complementary resources and networks, and any other factors which can contribute to a successful venture.

Naturally we could not be responsible for the outcome of the venture, however you can remain on the register and continue to assess opportunities until the choice is made. There are many avenues to investigate when researching an opportunity. The business operator can be interviewed by a financial consultant to ensure that the project has substance. They will also provide business and character references and checks can he done through the Australian Securities Commission and other bodies who may hold any information about the company concerned.

If the venture is undertaken with careful planning, good preparation and clear agreements it should prove successful for all concerned. The attrition rate of small business will be reduced, the investor's skills and contacts gained over many years will be utilised, both parties will benefit mentally, emotionally and financially from such a business project.

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