Trucking Company Angel Investors

Posted on September 27th, 2011 in Looking for Angel Investors by Matthew Deutsch

Trucking businesses are excellent candidates for financing from angel investors because there are a substantial amount of tangible assets that can secure the investment. Additionally, trucking companies generally produce very strong gross margins from their operations and as such you will be able to provide your potential funding source with a strong return on their investment. One of the things that you should focus on when seeking trucking company angel investors is that you can use a portion of the sought after capital to lease your vehicles.

Finding Angel Investors

You are going to need appropriate advisers that can assist you with finding angel investors as it relates to your trucking and transportation. These advisers will assist you as it relates to producing the necessary documentation, including a business plan that is specifically focused on a trucking business and your local market, that will be required of you. One of the things you should focus on clearly within your business plan is the very high gross margins, moderate operating overhead, and profits that are commonly associated with operating trucking businesses.

As always, you should have appropriate legal counsel and accounting advisers in place when you are finding angel investors for your small business – including specialized trucking companies. These advisers will be able to effectively assist you when it comes to remaining within the letter of the law regarding the sale of equity in your trucking business as well as helping you determine a fair valuation for your trucking and transportation company. At all times, you should focus heavily on the economically viability of your trucking company and the continuous demand for these services.

Angel investors and private investors are going to want to be shown that your trucking company can remain profitable and cash flow positive in any economic climate. In some instances, you may be able to receive loans from angel investors rather than selling an equity stake in the business. This will be further discussed in many of our future articles.

In any documentation that you provide to these investors you should heavily focus on the tremendous amount of tangible assets that are held by the business so that an investor can be secured in their investment should the trucking company business not go as planned. As with all business documentation, you are going to need to provide a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that showcases many important business metrics that angel investors want to see.

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