The Reasons You Should And Shouldn't Get Investors For Your Business

If just started your own business, welcoming entrepreneurship with proud, know that things won't be easy.

You may have the brightest idea, but that idea is nothing without execution. As a matter of fact, everyone has ideas, especially in this extremely competitive world. But none of those ideas will ever be revolutionary, unless someone is willing to do something about it.

Starting a business can be one of the most challenging things to do.

It takes time, energy, and of course money. The more of those three you have, the more likely you can execute your idea.

As for the latter, money, it can come in various sources: family members, friends, colleagues, banks, or investors.

When you're looking for money to fund your business, there are reasons why you should consider others to invest in your business, and the are also reasons why you should at least try to self-fund your business as long as you can.


Why You Should Have Investors

A no brainer.

Most early entrepreneurs aren't loaded with cash. Since running a business can be expensive, considering that you need to hire some professionals in their field, an office space, create marketing campaign, some cash as capital to create your product/service, and some more money to keep the business going, you may as well look for investors.

These people are those who aren't involved in your business' daily activities, but contribute to the fund, knowledge, expertise, and experience to the founder and the company he/she founded.

What you need to do, is create a compelling business plan, and show them how you want to execute your bright idea.

If you're idea is transparent, proprietary/defensible, have a great mission, control, vision, innovative, proven and scalable, investors may as well nod to your proposal.

The more you can propose your business' prospective using the above criteria, the more likely you can get funds from those investors, and the more people invest in your company translates to more money to kickstart your business.

Business meeting

Secure meetings with these investors, and approach them as you would any marketing endeavors.

Explain the overview of your business, let them know who are the founders, suggest who are the potential customers, and how future market, as well as the benefit to those investors (return of investment). And if the investors have any questions, you should answer them with great detail, but as short as possible, with dignity and professionalism.

Having a well-written and compelling business plan and proposal are critical when raising capital.

Why You Should Not Have Investors

You need skills to become an entrepreneur, and this includes the ability to hire people, know your business inside-out, understand the potential customers, the market with its supply and demand, and how to market your product and services.

But know that by the time you head to a bank or investors, you're essentially giving up control of your business, as soon as your hold out your hand for the money.

With outside investment, people will occupy the boards, and sooner or later, if they see that you're not doing things right, you can be ditched out of your own company. This is because by accepting their money, you're literally exchanging your share (your rights and power) for their resources.

If you want your business to run without outside investment, you need to consider the lack of investment as your training ground, a place where you're learning to become a tough-as-nails entrepreneur who makes money hand over fist because you have no option, no fallback plan.

Without investors, you lack their knowledge contribution, their experience and power. But here, you need to understand that your money will only grow on the tree you plant, and pursuit that lack in investment as part of your advantage.

The painful reality is that, whoever controls the cash will always control the business. Retain complete control of your business’s money and you’ll retain complete control of the business.

Without outside investment, your business is all yours. Without involving any investors, you can stay debt-free and totally in power.

Success tree

What you need to do

Stay safe, and bet your way up by taking any chances for a huge leap.

Once you have a strong business plan and business foundation, you can confidently predict the ROI (return of investment). And here, you can consider expanding with your personal assets.

Pull that money from your personal bank account and your future savings, cash out your prior investments, or even the car and house that you own, and put the money into business.

That leap of informed faith is what can turn your business into an empire.

Starting a business can be hard, especially if you're new to entrepreneurship and lack the money.

Not many people have loads of money in their bank account, and this fact is troubling entrepreneurs when starting a new business. They fear that without investors, their business will soon collapse under its own weight.

Without investors, many think that they won't have any chance in entrepreneurship and entering the business world.

That is definitely wrong.

Some founders may want to avoid investors, like because they failed to get one, or for other reasons.

But whatever your reasons might be, creating a business and running one without any outside investment is possible. The key is to start small, and work your way up from there by careful considerations and proper planning.

With time, you will build enough knowledge and experience to successfully propel your business, and even become an investor yourself.

But first, to get you started, you need to spend more of your time and energy, to cut down the costs that need money.

It will take more time, but you can get up there if you try.