Top 10 Reasons to Consider an Investor.
Getting financing is reported as one of the most difficult parts of starting a business. Despite all of the different financing options that are out there, learning about each of them and knowing which option is best for you takes a lot of time and effort that you don’t have. As an entrepreneur, whether starting a business for the first time or the fifth, you’re busy finding and hiring employees, handling licensing and paperwork, coming up with marketing strategies, and creating contracts for vendors. You hardly have time to sleep, let alone go out and find financing to cover the costs that the money you have in your pocket can’t.
Luckily, there are a lot of resources available that will give you a quick overview of different financing options and help you decide which one is best for you. Among the many options is the choice to bring on an investor. Investors can offer a lot of benefit to your company and better financing options than alternatives, so if you’re looking to finance your business and an investor is one of the options in the mix, then here are ten reasons you should consider an investor more seriously:
1. You’ll Get Some or All of the Funding You Need
Whether you have bad credit, can’t afford the interest rates on loans, or don’t feel that the loan options available are the best fit for you, an investor is a great way to get the financing that you need. Investors don’t generally require that you pay back the money they invest, making it a better option in some cases.
2. They Come with Connections
Some people argue that finding the right job, having the right opportunities, and getting into the right places is more about who you know than anything else. Personal connections can be extremely important to your career, and when you bring on an investor, you not only have your connections, but you have access to their connections as well and can use them to grow your network while fueling your business.
3. They Can Offer Moral and Business Support
When it comes to running a business, you may often feel like you’re in it alone. It can be difficult to handle the challenges and problems that arise. When you bring on an investor, though, you have another person who can offer you the moral and business support that you need to get through the times that are tough and make the difficult decisions.
4. Their Experience Will Help Them Give Valuable Input
Investors don’t often just start investing—they work and gain experience like everyone else. Experienced investors like Tom Zaccagnino can offer more than an investment and moral support. They can offer guidance and direction from their own experiences that can help you avoid making the same mistakes they did and help you make smarter decisions earlier on.
5. They can Boost Your Company’s Image and Reputation
Even if your image isn’t suffering, bringing on an investor can help boost your reputation. Many investors are well-known in certain circles, and when the word gets out that they’ve invested in you, those who trust and respect them will take interest and
6. They Can Help You Stay on Track
It can be easy to get sidetracked and distracted, even if you’re generally level-headed. Running a business can give you tunnel vision, but when you bring on an investor, they can generally step outside of the business and help make objective decisions, keeping you on track and moving forward in the direction you want to go.
7. They Take on Part of the Risk
There’s an inherent risk that comes with starting a business, but when you bring on an investor, some of that risk is transferred off of you and taken on by the person who invests in your company. This means that if the company were to fail for some reason, you may not lose out on as much as you would if you were the sole owner/operator.
8. They Often Come with Negotiating Skills
Some people don’t like to negotiate or bargain and feel uncomfortable with the concept. If you’re one of those people, then bringing on an investor may be able to help with that. Investors are experienced negotiators and can step in and help you get the deals that you need.
9. They Know What to Look for in Key Individuals
Investors have experience in many different areas, and one of those is recognizing key qualities in individuals who may become key leaders in the future. Whether during the hiring process or observing employees, having investors with those skills and abilities can be a huge asset to your company.
10. They Can Become a Lifelong Connection
Although you may bring on a particular investor into this business, as life goes on and things change, you may find yourself parting ways later on. That doesn’t mean that you can’t stay in touch and keep connected, though. Developing that lifelong connection could lead to other business opportunities down the road as well as a good friendship.
What makes you feel that an investor is the best financing option for your business?
