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Although money is their motivation, they are more likely to be genuinely interested in your business as well as the growth and development of particular industries.If you find the right angel investor, you may benefit from their expert advice and management skills.Or as mentioned above you can also get a credit card like the Chase Sapphire Preferred card or Chase Ink Business Preferred card to help cover your business expenses.
So if your startup company is a local pizza shop, you probably won’t have luck with VCs.
Although these terms are often used interchangeably, angel investors differ from VCs.
Do your best to include for the next three to five years: Make sure your projections are realistic.
As you can see from the example above, this company doesn’t project profitability until the third year of operation. You don’t need to turn a profit on your first day or even your first year.
Just know there are some risks associated with this approach as well.
You definitely don’t want to take a loan your friends gave you in good faith and lose it.
As an entrepreneur myself, I admire anyone who wants to create a company. In fact, only half of in the United States will survive through their fifth year of operation.
Furthermore, just 30% of those businesses make it through ten years. But getting your startup off the ground is the first step. If you are looking for a quick way to start covering your business expenses then you might consider using a credit card.
That could put both of you in a very uncomfortable situation.
With that said, I’ve talked to some entrepreneurs who said this had the opposite effect on them. VC firms invest in the early stages of your company in exchange for an equity share.