# angel investors



## renee (May 11, 2006)

hello ya'll! just wandering if anyone has ever heard of or been involved with angel investors? The information I have read seems to be for large corporations. I am looking for people who would want to invest in a small business. I have a previous post concerning investors, sorry to be redundant(sp?), but I sure would love some advice on where to locate money without taking a loan out. Thanks!!


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## lentil (Sep 8, 2003)

A friend of mine keeps telling me that I should look for grants , investors. I believe she's mentioned angel investors, too. I wish I knew more about it. Sorry. She is always telling me there's $$ out there specifically for women, too. 

If I could get these financial backers to walk up to my door and hand me a check, that would be great. I think it's the prospect of writing a business plan that keeps me from pursuing it.


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## kuan (Jun 11, 2001)

Sometimes business attorneys are your best bet.


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## bbally (Jan 2, 2005)

An angel investor fills that gap between the Venture Capitalists and the Banks. Angel investors are market specific in most instances. That is they invest in one area of interest. There are Restaurant and Food type angel investors out there. But to qualify in there eyes you better have you butt on the line and be "all in" for the ride. Meaning your house, your entire networth will be lost if the deal goes bad. If you are ready for that risk you are ready to deal with angel investors. If not you really need to shrink the capital requirements of the business plan.

I have raised a lot of money through angel investors. You find them at investor meetings. Try your local SCORE chapter, they may know of the angel investor club in your area.


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## renee (May 11, 2006)

Thank you who have replied so far, any info is better than none. I know there is $ out there to be had....just gotta locate it. The business plan has been very time consuming (and tedious), but you have to have one. 
Has anyone out there ever started a small store/catering company without the benefit of investors? Yeah, I probably could get a business loan, but having investors would be a better route, right? I mean we're talking about a 600+/- foot space to hold a kithchen and a display area for chefwear/kitchen utensils, etc. I'm not gonna be asking for much. 
As far as the SCORE is concernced, what is it? Thanks again! It was nice to see some replys on the subject.


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## lentil (Sep 8, 2003)

SCORE something something something retired executives. I dealt with them when I first started the ball rolling to open a small coffee shop. To be absolutely honest with you, I thought the man was taking things waaaay too far. I wasn't trying to develop a new starbucks, but to take over a very small place. I know they do great work, but for me at that time, they weren't what I was looking for.

I opened my catering/meals to go business just over a year ago without taking out a loan. I bought my equipment used or on an interest free credit for one year card and took a lot from my home. In fact, when I am home and want to cook something, I find that my whateveritisIneed is at the shop! That doesn't really matter though, as I'm usually at the shop! I will admit, my sister and her husband own a restaurant supply company so I was able to buy my used 2 door fridge at a great price ($500) and pay over a few months. I bought a lot of smallwares, foor prep sink, and shelving at an auction. Last fall, I bought a glass door display fridge for the front of the shop and finished paying that off this spring.

My shop is just over 600 square feet and is bursting at the seams. It would be better if it weren't really 3 long skinny rooms about 11 x 20 connected end to end like a mobile home. I use the front part of the first room for retail, the back part for my work fridge and freezer (that I bought for $100) and sink which is partially hidden by display racks; the middle room is my kitchen, and the last room is mostly storage and a small office space. That room upsets my sensibilities as it's such a disaster area. It does fine until I have a big catering job, and then it things don't get put away right for a week or so. Consequently, this month has been really hard as it's been so busy :smoking: I haven't had time to organize. 

I have about $7000 worth of debt on one credit card at this point. It seems like a lot to me, but my accountant doesn't think it's bad. I just paid off the cc for my computer and home depot for all the renovation supplies. I'd like to get ththe big one paid off and one option is to do the damned business plan and get a small loan. Taht way I could also buy a much needed convection oven, a freezer for retail, and more cambros, open another store in a neighboring town....

Sigh.

edited to add that my husband is incredibly supportive which has allowed me to go without a paycheck most weeks. I guess that makes me essentially unemployed, doesn't it?! Actually, it's allowed me to roll the profit right back into the business. This summer, business has picked up enough to I was able to buy him (with contributions from my kids) the really nice mountain bike he's been lusting after for over a year. Good thing his lust is directed toward the bike because I'm exhausted! (insert winking smilie here)


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## bbally (Jan 2, 2005)

Yes, lots of people do and I have done it both ways. There is advantages and disadvantages to both. Depends on what you are trying to accomplish with the business.

Investors have to be taken care of, talked to, kept up to date etc. So they are not appropriate for a "lifetyle" business. But if you are an empire builder they are really important.

SCORE is Service Corps of Retired Executives. Usually your local SBA or your closest SBA office will have the lists. Depending on your area you will be dealing with corporate executives that retired from working. And as has been pointed out most will think in the empire mode not the lifestyle mode so be aware that franchising, etc will come up.

Might want to look at Rule D number 504 of the Securities Exchange Commission code. It will give you the rules for raising 1 million per year. Also 505 is important if you are going to eventually franchise the operations.


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## chefken1969 (Feb 19, 2008)

Renee,
I am in the same boat as you. I run a small cateing business and want to open a gourmet market w/ upscale take out and I am having a hard time getting money being a new business. I have all my equipment just need the space to do retail, found the space but need money to do buildout. Little by little is all I can say. And be careful getting bedded with an investor.

I started my catering company with $1700 and two clients, from there I purchased equipment as needed. You can do the shop you have visioned ...just start small and work up to your vision. Better to start small and then get bigger than to start big and it not work out then you have to sell it all as well as your credit score. 

Peace from the South East. Charleston SC ya'll


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