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Lior Poly

If you own a high gross margin income type of business, it will be in your best interest to work with a small business investment company or angel investor. According to Lior Poly, a business plan is imperative if you're seeking outside financing.

 Furthermore, business plans are essential if your business generates high gross margins. If you are applying for a bank loan, you're going to need to showcase the tangible assets that are going to be purchased with the capital that you need and the gross margins of your business. Lior Poly recommends that you should have a description of your ability to operate the business on a day-to-day basis in your business plan.

Within the business plan that you intend to use to source funding for your business, you should include some obvious ideas in your market analysis and connecting needs from related markets. Regarding your capital structure, preferred shares typically do not allow angel investors to have a say in your business's ongoing management. In his experience, Lior Poly has discovered that it is imperative that you demonstrate your management experience and that your business will be profitable. This will go a long way in attracting potential investors. 

The Difference between Venture-capital Firms and Angel Investors

Lior Poly advises you to take a very close look at any party you intend to do business with.

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Lior Poly states that most venture-capital firms operate on a much larger scale than angel investor networks, and they will want to take a large portion of your business. However, if you are running a low-risk business, it may be in your best interest to seek an alternative form of financing. Angel investor networks typically syndicate larger deals so that individual investors can take a lesser risk. That financing provided by private individuals does not usually require a personal guarantee against personal assets to receive the money you need. Large investments may be more appropriate for a venture capital firm, especially if your business is not suited for a business loan or angel investor. Most angel investors have an investment time frame of approximately three years to seven years. Your business needs to be able to support this requirement. 

Just as a potential funding source will look in your business, Lior Poly advises you to take a very close look at any party you intend to do business with. It is essential to consider whether the product or service you are offering will be in demand to determine investor suitability.

Bank Loans

Suppose you are not suited for a private investor. In that case, you should be aware that financing has been extended to loans that most banks would have previously considered to be too small to be profitable through the SBA Low Documentation Program. 

Final Thoughts

If you're operating a technology-based business, you should always make sure that you have patent protection or copyright protection on your product. This is especially important if you are working with private funding sources to ensure that you do not lose ownership of your intellectual property. Angel investors could capitalize on the lack of protections in place on your intellectual property, which would often be to your detriment. If you feel that your business is still best suited for an angel investor, you should work closely with a Certified Public Accountant and an attorney to start this process.

Nathalie Nicole Smith states that working hard and staying true to yourself are sure ways to win in life.

Lior Poly is also a successful affiliate marketer and gives tips on finding the best niches. The niche has to be one where you can spend a lot of money on campaigns because that corresponds to a large customer base that you need to appeal to. Subsequently, you need to ensure that your products and services are timeless because that way, you will never run out of business.