To find angel investors, you need to strategically plan how you are going to go about it, Get quality information on how to develop a plan that is sure to get investors on your side. Discover the entrepreneur in you! Visit http:/www.business-plan.co.za for more.

1. Small Business Investor – Small Check, Big Headache
Small Business
Investor –
Small Check,
Big Headache
To raise capital, angel investors are key to your
business. Find out how you can develop a strategic
business plan that will help you source funds from
investors. Read More

2. Small Business Investor – Small Check, Big Headache
I don't know if there is some sort of
mathematical equation you can put to
this, but it would certainly appear that
the smaller the investor's check, the
bigger the headache they become to an
entrepreneur.
You might think the opposite would be
true, that smaller investors would only
expect to play a minor role in the
business while the larger investors
would make all of the important calls.
What you'll find in practice, though, is
that raising and managing small chunks

3. Small Business Investor – Small Check, Big Headache
of capital from small investors is
incredibly laborious while the more
manageable investments come from
much larger investors.
Less Money = More Time
Smaller business investors seem to have
disproportionately more time to invest
than they have money. These are the
guys who are putting $5,000 into your
company and think they're Gordon
Gekko, trying to run the company like
some big time investor. All this extra

4. Small Business Investor – Small Check, Big Headache
time that they have to manage these
investments actually sucks the life out of
your deal because you have to
constantly manage their expectations to
the nth degree of detail.
Certainly getting help from a small
business investor to grow your business
is a nice thing, but not if it involves
being micro-managed to death over
every decision. A good small business
investor will understand that their role is
to invest in the company, not run the
company. You want their invested

5. Small Business Investor – Small Check, Big Headache
capital working for your business, not
another pseudo manager to contend
with.
Small Checks Take Longer
Raising smaller amounts of capital
doesn't translate into reducing the time
it takes to get a check. In fact,
sometimes the smaller amounts take
more time because the people writing
those checks really can't afford to invest
(read: gamble) that money to begin
with.

6. Small Business Investor – Small Check, Big Headache
They need to be certain of every last
aspect of the deal to the point where
they over-analyze the deal completely.
Before you know it, you're jumping
through all of these hoops over a few
thousand dollars. It's a huge waste of
time.
Even if you do manage to land these
small business investors, you can be
certain he's going to be on the phone
with you every 15 minutes trying to get
a status update on his investment. He's

7. Small Business Investor – Small Check, Big Headache
got the time, and the investment is
incredibly meaningful to his overall
personal wealth. You've become his
living, breathing stock ticker that he
constantly wants to see updated.
Big Kids Run Faster
Believe it or not, it actually takes just as
long to raise larger amounts of capital
as it does smaller amounts. That's
because the larger investors (the big
kids) tend to have less time to spend on
any one deal. They have lots of deals to

8. Small Business Investor – Small Check, Big Headache
choose from, so they have to get to the
point quickly and make a decision
quickly.
For an entrepreneur raising capital, this
is the best thing in the world. Ideally
you want as much flexibility with the
capital that you raise as you can muster.
You want an investor who pays
attention to the important points of your
growth, like monthly earnings, not daily
expenses. That's what you're there for!

9. Small Business Investor – Small Check, Big Headache
That's why a bigger investor is usually a
much better option when raising capital.
They can make decisions about the
investment faster, they can fill up your
investment requirements faster, and
they can leave you the heck alone so
that you can grow the company a lot
faster.
Too many cooks in the kitchen
With fewer small business investors you
also overcome the problem of "too
many cooks in the kitchen". Startup

10. Small Business Investor – Small Check, Big Headache
companies need to make lots of
decisions very quickly and decisively.
The company runs a lot better as a
dictatorship than a democracy. The
more votes you create by adding more
investors the longer the process
becomes to make a decision.
You can overcome this problem by
giving certain small business investors
"voting rights" and giving other small
business investors the right to keep
quiet, but don't kid yourself - you're
going to hear from the guys who don't

11. Small Business Investor – Small Check, Big Headache
have voting rights whether you like it or
not. So the best antidote is to simply
have less people at the decision table.
Less is More
As you're thinking about raising your
next round of capital, don't think in
terms of lots of small business investors
with a little capital - think in terms of
one (or two) investors with a whole lot
of capital. You don't score any
additional points for racking up the
greatest number of investors. If there

12. Small Business Investor – Small Check, Big Headache
are any points to be scored, it's from
getting as few investors as possible in
order to get your requirements fulfilled.
When growing a new business, every
moment of your time has an incredible
amount of value. The more time you
spend placating overzealous small
business investors, the less time you
spend doing what you all came there to
do in the first place - growing the
company!
Read more

13. Small Business Investor – Small Check, Big Headache
Wil Schroter's latest book "Go BIG or Go HOME - How the next generation of startup companies
think BIG, grow FAST, and dominate markets overnight" is available at
http://www.WilSchroter.com
About this Author
Will Schroter is the Founder and CEO of the Go BIG Network, the largest network of startup
companies and entrepreneurs. He is also the author of the new book “Go BIG or Go HOME”,
download it for FREE at www.gobignetwork.com
Article Source:
http://EzineArticles.com/?expert=Will_Schroter