Possible investors for your business fall into four categories: Friends and family, Crowdfunding, Angel Financing, and Venture Capital. The first two are within the reach of most businesses, while the latter two are options for a very specific – and small – group of businesses. Friends and family are the low-hanging fruit of investors. It may be easy to talk Mom and Dad, your siblings, etc., into investing in your business, and to do so with minimal paperwork. If your business does not perform to plan, however, it’s also easy to imagine the awkward discussions at the holidays when they ask about how your business – and their investment – is doing.
In last month’s column, we looked at the advantages and disadvantage of debt versus equity, or borrowing money versus having investors. This month, we’ll look at possible investors for your business. The first two are within the reach of most businesses, while the latter two are options for a very specific – and small – […]