The Local Bookkeeper has been granted associate membership to the organisation that will allow them to support businesses through the process of gaining new funding from business angels and after the investment has been granted.
A recent poll from The Local Bookkeeper found that 74% of businesses are currently seeking funding and, since the bank have cut funding to one in three small businesses recently according to a report by The Federation of Small Businesses, business owners are beginning to realise that they do have other options. A refusal from the bank does not mean the end of the line.
Businesses may actually benefit more by investment from business angels who will often not only make money available to the business owner but also their invaluable advice and contacts.
Because of the personal investment of a business angel, they have a personal interest in seeing that the business in a success to see a return on their investment unlike your bank manager.
However, do not think that approaching a business angel will be any easier. These individuals are experts in business with a world of experience behind them. Those who think they can ‘talk’ money out of them will be met with a big surprise, applicants must know their business inside out and be ready to give know every last honest detail about their business upon command.
The business angel will only invest if a business is extremely well-organised and, most importantly, has growth potential with a capable management team to facilitate this. When approaching a business angel, you must be well equipped with an excellent business plan, management accounts and presentation for the business angel to assess your capacity for investment.
There are many viable businesses that should be rewarded funding but the business owner is not financially aware enough to be able to understand his or her situation fully and therefore cannot give a comprehensive proposal to the investor.
The Local Bookkeeper can help businesses that are seeking funding to prepare their accounts and business plans ready to pitch. Without these, it would be virtually impossible to achieve the funding they require.
Management accounts will give the business owner the transparency to show the business angel their true situation and justify the new funding. These will also be essential on an ongoing basis if the loan is achieved to compare it against the business plan and keep the investor updated with growth of the company. This will almost inevitably be part of the invest terms and conditions.
They will also be able to liaise with the business angel to advise them on your financial situation without hassle on the part of the business owner.
Together, these two organisations will be able to place many deserving businesses on the path to able to secure funding that facilitate their growth and unlock their potential success.
About The British Business Angel Association (BBAA)
The BBAA was created in 2004 and receives some support from the UK Government as well as a number of sponsors from the early stage industry. It has a growing membership consisting of 22 Business Angel networks, 20 Early Stage Venture Capital funds, and over 30 professional advisory businesses, policymakers and academia.
The BBAA is driven by a board of high calibre individuals from within the industry and supported by a network of 4 Committees whose membership comes from within BBAA, meaning that members have not only a voice in the direction of the association, but also help drive forward and shape BBAA policy.
