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Understanding Your Needs.
Exceeding Your Expectations.

Understanding Your Needs.
Exceeding Your Expectations.

What to avoid when looking for an investor

On Behalf of | May 4, 2020 | Business Litigation |

Whether you are getting ready to launch a new business or you are expanding your current company, it is exciting to see your ideas start to take off.

During this time, it is essential to have the right people by your side. While your friends and family may offer moral support, sometimes you need an investor to take the next step.

Here’s what you should avoid when you are looking for an investor to support your new or growing business.

Unaligned interests

It is easy to get excited when you are talking about the next stage for your business. After all, you have spent a significant amount of time building your ideas and plans so that your company can grow.

When you are talking to an accredited investor about investing in your business, try to understand their interest and level of commitment. Discuss the goals you have for your business and where you see it going in the future.

The balance is off

Investing in a business is a big commitment for both you and your investor. You both want the company to succeed, but there could be questions about the best way to help your business move forward.

In most cases, when you ask someone to invest in your business, they will want some control in the decisions you make. Have an open and honest discussion about who gets to make final decisions for your business.

If you both cannot agree on the decision-making process, then that might be a signal that you should keep looking for an investor who understands your goals and is willing to support your vision for getting there. You both may need to make compromises, but make sure you know what controls your investor wants to have before moving forward.