Business Angels are investors who provide financial assistance as well as guidance in running a startup to entrepreneurs. These angels are experienced professionals who have made their mark in their respective lines of work and have consolidated their position in the field over and over again. These investors business look for individuals looking to enter markets with high barriers. Niche markets include areas of work that are not being catered to by mainstream manufacturers or service providers.
It is of utmost importance for anyone looking to set up a business in niche markets to have a strong case in order to get the requisite funding. While starting small business, all entrepreneurs look for the key demographic that they aim to capture with their product/service. In case of niche markets, the clients may be limited in number, which can prompt the business angels to not invest in the venture. And, in case the number of targeted audiences is not enough, the business would have to ultimately close its shutters.
Also, in case the number of consumers is sufficient, the question that ‘why are mainstream companies not satisfying the requirements’ arises in the minds of Investors Business. This is usually because serving the needs can be difficult or extremely expensive, so unless the budding businessman can produce the demanded goods at reasonable rates, the angel networks would not want to provide financial aid to him for starting small business.
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