Should I Get a Business Credit Card? 7 Good Reasons to Go for It

Even though they aren’t easy to find, angels do exist and are definitely worth the quest. Keep in mind, though, that they dwell solely in the world of entrepreneurship. This article will provide some insightful tips and tricks on how to find angel investors so that you can start funding your startup and seeing your professional dreams come true. What Are Angel Investors, and What Do They Do? Angel investors are a special breed of investors. They are typically high-net-worth individuals who invest their own money in early-stage startups. Their motives stem from believing in the company and its team and wishing to see the startup succeed.  Unlike venture capital firms and venture capitalists, angel investors are not looking for a quick return on their investment. They are willing to wait longer to obtain profit and are often hands-on with the companies they invest in. Taking on more risk than traditional investors, angel investors typically require a higher rate of return on their funding. Consequently, they can earn a much higher payoff once the company has become successful. Due to the uncertainty involved in this type of financing, finding angel investors might be a bit tricky.  Angel investors are an essential source of funding for early-stage startups. They provide the capital indispensable for startups to get off the ground and grow. In addition to bringing capital, angel investors often serve as mentors and advisers, helping founders tackle the challenges of building a successful business. Without them, many promising companies would never have gotten started. How To Find Angel Investors for Your Startup Here are some tips and tricks that’ll help you navigate the sphere of entrepreneurship and inspire angel investors to bestow their benevolence upon your startup: 1. Do Your Research The first step in raising capital for your venture is conducting preliminary research. It’s a good idea to identify investors who are the best fit for your company based on their previous activities. There are a number of resources available online that can help you with this process. The Angel Investor Directory, for example, lists angel investors by state, mentioning what their preferred sectors are. You can also optimize your hunt for a perfect angel investor on websites such as AngelList, a popular platform that connects startups with potential backers. It has funded more than 12,000 startups and has $10 billion in assets supported.  In addition, you can create a profile with Gust, a global platform that provides angel groups with tools to facilitate quality investments, or Angel Investment Network, another great website that brings together businesses and investors.  Finally, we recommend you join the Angel Capital Association, the world's largest network of angel investors with a community of more than 13,000 accredited investors. 2. Contact Angel Investor Networks If you’d like to know how to find legitimate angel investors, the best advice is to network at all times. Start connecting with as many people in the startup community as possible. Attend startup events and meetups, getting to know the angels who are already investing in startups. These connections will give you a chance to encounter an aspiring angel investor who might be interested in your company.  Once you get to know the right people, they may be able to introduce you to future investors. Focus on business owners, as they will likely think about funding small businesses at one point in their entrepreneurial journey. If you’re wondering where to find angel investors, you should join business associations, civic and community organizations, and attend trade fairs and events. Mingling with like-minded individuals will help increase your chances of bumping into the right angel investor. 3. Use Social Media Social media is a convenient tool that can be used to connect with corporate investors. An excellent platform for connecting with business professionals, LinkedIn is a good way to find out about investment opportunities. Twitter is another useful platform that can help small business owners secure early-stage funding. You can promote your company on Twitter and reach out to future investors.  To find an angel investor that’s a right fit for your business, you can also use Facebook. By posting regularly, you can promote your company and connect with angel groups. Start by telling your story, then build an audience, and inspire some of them to reach out to you first. If not, don't be afraid to make the first step and get in touch with potential investors. 4. Give Presentations Presenting your business idea and strategy is another excellent way to connect with those who could provide the funding your startup needs. This is an opportunity to showcase your company in front of a group of people and get them excited about the work that your company is involved in. If you're planning on giving a presentation, make sure it's professional and engaging. You want to leave a lasting impression on possible investors, so make sure your presentation is polished and bulletproof. Your story is what will make you stand out from the hundreds of other startups pitching to investors. Tell a narrative that captures the attention of potential angel investors for startups and makes them eager to invest in your operations. Focus on why you're starting your business, which unmet need you’re addressing, and how you're going to make money. 5. Make an Impactful Pitch Deck Looking for an angel investor can be a daunting task. Once you've identified potential investors, the next step is to pitch your business ideas. Devising an effective pitch deck is a critical piece of the puzzle as it will be the first impression that investors have of your company. Make sure that your pitch deck is clear, concise, and persuasive. Investors should be able to understand your business model and see the potential for growth. It’s also advisable to indicate what’s in it for them if they decide to provide backing. Angel investing requires having a meticulous plan in place, so make sure to include key data points around projected revenues and market share to demonstrate the potential of your vision and business model. Here’s how to find angel investors for your idea and pitch your business at the same time: include a clear description of your accomplishments and team capabilities based on their track records, as well as details about your current stage of funding or development. Ultimately, the objective of your pitch deck should be to show that you have what it takes to bring your concept to fruition. 6. Try Online Crowdfunding Crowdfunding is a great way to raise money for your business, and it's also a chance to connect with potential angel investors. When you run a successful crowdfunding campaign, it shows potential investors that there is interest in your company. Attracting individuals who are willing to fund your business idea then becomes a piece of cake. There are a few crowdfunding platforms you can use while looking for angel investors, such as Kickstarter, Indiegogo, and GoFundMe. Choose a platform that's right for your business and start promoting your campaign. Statistics show that successful crowdfunding campaigns raise an average of $33,430, so why not give it a try and see if you can spot some angels along the way. 7. Ask Family and Friends Seeking investment from those who are closest to you for the project you believe in can be a great idea. But before you start sending out feelers, it is important to understand that this comes with its own challenges. Knowing how to find angel investors among family and friends is a skill that can bring in substantial funding. When raising money from your loved ones, it’s essential to set expectations from the beginning and agree on certain boundaries. This means being clear about how much money you are looking to raise and what the terms of the investment will be.  Another thing to keep in mind is that, while your relatives might be personally invested in your venture and therefore quite forgiving, you still need to make sure that you are using their money wisely. It’s best to have a solid business plan and direct the funds solely toward growing your business. What To Look For in an Angel Investor? When learning how to find and convert angel investors, you should take certain factors into consideration. First and foremost, ensure that you’ve chosen someone whose previous performance has been exemplary. An accredited investor who has a history of successful investments will be much more likely to help your venture succeed as well. Additionally, it’s important to seek out an investor who shares your long-term vision and values. This will help you avoid any potential conflict down the road and ensure that your company is aligned with your investors’ interests.  It’s always prudent to seek out angels with deep pockets. Knowing who angel investors are and how to find them isn’t enough if they don’t have ample funds. Whether they have access to large amounts of capital or just a strong network of investors, having financial support from multiple sources can help keep your company on track during difficult times. When approaching individuals whose wealth can contribute to your business, don’t forget their mentorship ability. A capable angel investor should provide professional guidance alongside financing. As they have likely been through the startup process, they could offer advice on everything from developing a business plan to hiring employees. Having a seasoned mentor on your side can help you avoid common mistakes and make the most of your limited resources. Bottom Line Now that you know how to find real angel investors who possess the right combination of skill and resources, you can onboard someone to take your company to new heights! It’s good to have realistic expectations, though. Not every potential investor will be interested in your business, and you should not take it personally if they decline to invest.  Remember that even the most promising startup will likely face challenges and setbacks along the way. That’s why you should be prepared for bumps in the road and have a solid plan for how you will overcome them. With hard work and dedication, you can achieve your goals and make your business thrive.

Looking to borrow money or make an investment? Understanding APR and APY in banking will help you make the right decision for your personal or business finances. If you’ve ever invested or used credit products, you’ve considered the interest and therefore encountered the terms APR and APY at some stage. So, what difference does one letter make? Well, it marks the difference in how these financial items impact your finances. The APY vs. APR distinction delineates the most important types of accounts: Savings/investment accounts and lines of credit. Here’s everything you need to know. APR vs. APY: The Definitions As you know, both terms are acronyms. APR is an abbreviation for annual percentage rate, while APY stands for annual percentage yield. Both signify a type of interest, and understanding them requires understanding compound interest in general. Compound interest is “interest you earn on interest.” For example, standard interest is calculated as follows: Principal figure x Interest rate x Term of agreement (usually in months) On the other hand, with compounding interest, you will pay or earn interest on this interest. Without worrying too much about the complex formula, the key outcome is that interest grows with every payment cycle. What Is APR? APR in banking represents a percentage of a loan principal you’ll pay in interest for a year. In other words, APR is a borrowing term, not a savings term.  The APR figure is achieved by multiplying the interest rate by the number of payment periods in the year. As a formula, this is expressed as: APR = interest rate x number of annual payment cycles Most financial products use a month-based payment cycle model. In the US, lenders are obligated to inform clients of the APR on any credit agreement, as per the 1968 Truth of Lending Act. APR includes the total borrowing costs over a year, so it should be the biggest deciding factor when considering a loan. What Is APY? APY in banking can relate to both borrowing and savings. In lending, APY represents the percentage of your principal you’ll pay, but with the compound interest taken into account. Although not as commonly used on borrowing, APY can be deemed more accurate than APR as it takes the compounding interest into account. Still, APY is rarely used when describing loans, and is primarily a term encountered with savings accounts. As a formula, this is expressed as: APY = (1 + Periodic Rate) x Number of periods – 1 In other words, what APY is on a savings account, is essentially the total interest you’ll earn on a deposit account over one year, assuming that no deposits and withdrawals are made. APR vs. APY: The Differences Have you ever noticed that you’ve most commonly seen APY mentioned by investment companies and savings account summaries, while credit lenders tend to focus on APR? Once you see the two in practical examples, it becomes easy to see why. If you were to borrow $1,000 with an APR of 6%, you would essentially be paying 0.5% interest per month (6% divided by 12). Each month, the interest would be $5, making for an annual interest total of $60. Conversely, as per the APY definition in banking, the APY would mean you pay the same $5 in the first payment period. However, in the second month, you would pay 0.5% on the new balance of $1,005. And so on. Over the course of a year, it would mean paying 6.17% in interest. In this example, that’s only an extra $1.68. However, with bigger sums and a more realistic interest rate in mind, it’s easy to appreciate how it can impact every loan. Consumers looking at credit cards, loans, and other forms of lending often prefer APR as it delivers a clear bottom-line figure. This makes it very easy to compare financial products from different lenders, but it conceals the compound interest. When borrowing money, APY gives you a clearer understanding of what you’ll actually pay compared to the promoted APR. So, it may be the key to avoiding unexpected interest costs over the term of your agreement. If you are an investor or lender, though, APY is the only thing you should be concerned with, as you won’t be paying interest - just collecting it. APR vs. APY in Crypto In addition to traditional financial products, APR and APY are two tools that are now used by lenders and investors in the crypto arena. They work the same as they do in fiat finances: APR is the interest a trader will pay on a crypto loan over the course of a year, while APY is important for investors, as it represents the return they can expect annually. This is because it takes into account the fact that the initial investment is continually re-invested and gives you the compounding results. However, since crypto is extremely volatile, neither figure really tells borrowers or investors much about the future, as the same percentage could equate to wildly different figures in the span of just one year. The Final Word On APR vs. APY Both APR and APY are essential terms that relate to interest payments and may subsequently significantly influence your overall repayment obligations on borrowing accounts or the interest gained on investments and savings accounts.  With a deeper understanding of both terms, making a calculated decision regarding the best financial products for your situation should become a lot simpler - don’t shy away from using an APY calculator, either, as that will give you the most precise numbers you might fumble while doing maths by hand.

When you’re about to launch your company, choosing a name is at the top of the list of tasks. However, to be safe, first you need to check that it doesn’t violate any existing trademarks. If it does, you could face a lawsuit.  Furthermore, if there’s a name you love, it would be a good idea to avoid creating any marketing materials or building a website until you’ve run it through a business name checker. Otherwise, you may have to rework everything, losing money in the process.  In this post, we discuss how to check if a business name is taken. You’ll then learn how you can register your business name to protect it.  Ways To Find out if a Business Name Is Unavailable Here are some methods for ascertaining if a business name is taken. State Business Name Search  Each US state has an agency responsible for business filings that allows you to check if a business name is already in use. You either make a formal request using a form – the old-fashioned way – or you search its publicly available databases online. If you search online, it will take mere seconds to find out whether your company name is taken.  If you find a name that is similar to yours, but not the same, you’ll want to check your state’s rules for what is acceptable, and what is not. For instance, you may not be allowed to register the name MacDonald’s because it is too similar to McDonald’s. As each state has slightly different rules, if in doubt, contact an attorney. Trademark Business Name Check Whenever companies create a new trademark, they add it to the US Patent and Trademark Office (USPTO) register, which becomes searchable by anyone in the business community. A trademark business name check is a nationwide, federal-level check that allows you to see all of the current trademarks.  You’re most likely to run into trademark business name problems if: The company name is taken or similar to an existing company You operate in a similar industry to a company with a similar name to yours If you aren’t sure whether the name resembles an existing firm’s, then you will need to speak with a trademarking lawyer. They can provide you with further advice.  Check the “Doing Business As” (DBA) Register Some states require businesses to register under a fictitious name with either the county or the city. Companies don’t always use these names for customer-facing purposes, but they do for registration. As such, they often have common law rights to their fictitious names, so you will need to avoid using them.  You can look for DBA name availability by checking DBA registrations. There might be businesses operating in the local area with names similar to the one that you want, even if they do not use them for their brand.  Google Search While Google shouldn’t be your primary means of checking business name availability, it can be a helpful tool. State and national registers may contain errors or incorrect details for some trademarks in operation. Some firms might also be using trademarks that they never registered.  Besides, you may simply wish to check what Google results come up when you type in your company name ideas. You may find, for instance, that:  The search term is too competitive, and the name is close to a common keyword that prevents you from showing up on the first page A business with a similar name sells the same products and services as you There is a company in your local area using a business name that they have not trademarked You can also perform a Google Domain search to find available business names. This lets you see whether anyone else has registered the URL of your business name. For example, if you are a bookkeeper, you might want www.ABCBookkeeping.com as your URL, so it’s worth checking out if the domain is free. Sometimes you will discover that the company name is available on official registers but that the domain is already taken. This could be because the company went out of business but still owns the URLs, or it could mean that somebody took the name in the hope of selling it for a higher price later on. Either way, you may want to reconsider the name if the domain has been claimed or is behind a high paywall.   How To Register Your Business Name In the US, there are four ways to register a business name.  Entity Name Entity names protect the name of your business at the state level. However, whether you need to register legally depends on the state in question.  Business name registration allows the state to identify your business. Most states only permit you to take available business names, though there are exceptions.  Once you have a company name and register it with the relevant formation agency, you have the protection of that name. Your business will appear in the register whenever other entrepreneurs check company name availability.  Doing Business As (DBA) Names States, cities, and counties sometimes require business owners to register their DBA name with them, sometimes called a trade name, or fictitious name. DBA names don’t provide legal protection, but many jurisdictions require them for setting up a business.  Even if you don’t have to set up a DBA by law, it might still be a good idea. DBAs can shield your personal identity from your business name, making you less searchable online. Setting one up also entitles you to a federal tax ID number (EIN) which you can then use to open a business bank account.  States typically allow more leeway for DBAs than for entities. For instance, you can be broader in your descriptions of your business's function.  Domain Name Registering your domain name is essential for the online presence of your business. Ideally, you want a URL that reflects the branding, nature, and mission of your firm. Website names don’t need to be identical to your company name, and are acceptable as long as users can easily recognize that they are linked to your business. Domain names, like trademarks, can last as long as you own them. However, you will need to pay an annual fee to an online register to keep your site.  Businesses register domain names through registrar services, so you’ll need to pick a reliable registrar from an approved directory.  Trademark Lastly, trade name registration is also important. You can use it to protect the name of your business, goods, and services at the federal level.  For instance, Microsoft Corporation is the entity name, while Dynamics 365 is a trademarked service name. Nobody else in the computer software industry can use Dynamics 365 to name their products. If they do, they risk infringement lawsuits.  Trademarking is an effective way to prevent competitors from stealing your ideas. Once your names are in the USPTO’s official trademark database, you can launch lawsuits against any company that copies them. Summary of Business Registration Once you've selected a suitable business name, you must register it. Here’s a summary of what you need to do:  Protect your name at the state level with an entity name Protect your name at the federal level with a trademark name Register a DBA name if required by the state Register a domain name that is similar to your brand name and easily recognized by your customers You can choose the same name for each registration or opt for a different one for every task. Recommendations Once you know how to check if a business name is taken, you can proceed with launching your business operations. Make sure that you consult all the registers described here, both at the state and federal levels, before taking the plunge and opening up your business to the public. This kind of caution is indispensable for ensuring you’re not using a trademarked name, as you could face hefty damages if you are.