A while ago I wrote that money is a key resource in making your business a marketing success.
If you are just starting up and have no sufficient capital, you might want to get an investor.
Two things happen when you get outsiders to invest in your venture:
- You don’t have as much control
- You don’t have as much equity
On the surface, these seems like disadvantages. It does not have to be so. Sometimes investors insist on you hiring experienced managers. That’s actually an advantage as they probably know more than you on how to run a business.
Even if you don’t have 100% equity, if investors throw a lot of money in your venture you can be assured that they see as big as you. Fine you don’t have 100% of a company that’s worth $ 20 000 but instead you have 20% of a company that could be worth 50 million. What would you rather have?
Giving up control and equity can have its upside. It’s just that the horror stories get more press than the happy ones.
